Double 11 Approaches... Attention Focuses on Beneficiary Stocks

Expected Benefits for LG Household & Health Care, Amorepacific, Nongshim, and Others

The 'Whoo' brand video featuring Gwanghwamun as the background, scheduled to be showcased on the Tmall main page from the 8th of next month until Singles' Day (Photo by Asia Economy DB)

[Asia Economy Reporter Geum Bo-ryeong] As China's largest online shopping season, Guanggunje (November 11), approaches, market attention is focused on the beneficiary stocks.

According to the Korea Exchange on the 27th, individual investors have net purchased 17.6 billion KRW of LG Household & Health Care and 14 billion KRW of Amorepacific over four trading days from the 21st to the previous day. LG Household & Health Care and Amorepacific are considered representative related stocks of Guanggunje.

The stock expected to benefit the most is LG Household & Health Care. Its cosmetics brand, The History of Whoo, surpassed last year's total Guanggunje sales as soon as its pre-sale began. Whoo was selected as one of the five brands with sales exceeding 500 million yuan (about 85 billion KRW), alongside Est?e Lauder, Lanc?me, L'Or?al, and Shiseido. This once again proves that it is a top preferred brand among Chinese consumers.

An Ji-young, a researcher at IBK Investment & Securities, explained, "Based on sales trends during the preheating period, Whoo's sales during this year's Guanggunje are estimated to exceed 100 billion KRW," adding, "Because the transaction amount already exceeded 500 million yuan within 14 minutes of pre-sale, centered on gift sets such as Cheongidan, Hwahun, and Radiance basic care." In addition, F&F, which is rapidly growing in China with its clothing brand MLB, and Nongshim, popular for Shin Ramyun and Neoguri, are also awaiting Guanggunje momentum.

Last year, related stocks showed a simultaneous rise ahead of Guanggunje. Amorepacific's closing price rose 23.15% in about 10 days from 155,000 KRW on October 28 to 191,500 KRW on November 8, the trading day before Guanggunje. During the same period, Leaders Cosmetics rose 21.69% from 5,670 KRW to 6,900 KRW, Jayjun Cosmetic increased 25.63% from 4,155 KRW to 5,220 KRW, and Aekyung Industrial rose 6.13% from 27,750 KRW to 29,450 KRW.

The scale of Guanggunje sales has been growing year by year. According to Hyundai Motor Securities, Alibaba's online mall recorded a transaction amount of 120.7 billion yuan on Guanggunje day in 2016, increasing to 168.2 billion yuan in 2017, 213.5 billion yuan in 2018, and 268.4 billion yuan last year. This year, it is estimated to exceed 350 billion yuan.

Song Seung-yeon, a researcher at Korea Investment & Securities, analyzed, "From November to December, the largest consumption of the year usually occurs worldwide," adding, "As the year-end special shopping period approaches, not only consumers in the distribution industry but also investors waiting for the momentum of related stocks are increasingly optimistic."

This content was produced with the assistance of AI translation services.