Founder and Strategist, Entext Economics & Strategy

Sean Maher

Founder and Strategist

Entext Economics & Strategy

Entext provides institutional investors with distinctive, actionable asset allocation and thematic research, which typically challenges the market consensus. Our clients range from credit, equity and multi-asset hedge and pension funds to family offices and sovereign funds. 
 
We focus on identifying key inflection points in macro data and relative asset performance amid the 'groupthink'  and confirmation bias that characterizes most investment bank analysis.

Macro Driven Investment Insight

Thematic (Sector/Industry)

<div style="text-align: left;" class="content-caption"><blockquote><p><em>‘“I try to use a facial pack every night,” says Mr. Kim, 28 years old, who now works at an office in Seoul. “It’s been a daily routine since my time in the military.” South Korea is a force in the global beauty industry and its carefully groomed pop idols have become global stars. And for many guys here, the gateway to face serums and 10 step skin care regimens is their time as military conscripts. During his service, Mr. Kim developed a routine while posted at an observation post along the barbed wire fences of the inter-Korean demilitarized zone.’ </em></p></blockquote></div><div class="content-remarks"><p><a href="https://www.wsj.com/articles/the-secret-to-surviving-military-service-moisturizer-foam-cleanser-cucumber-face-mask-1535034194" target="_blank">WSJ article</a> on the elaborate skincare rituals of S. Korean men</p></div><blockquote>
<em>“Fiscal year 2018 was an outstanding year for our company. By focusing on strategic priorities and investing in our multiple engines of growth, we delivered double-digit sales and earnings per share gains in all four quarters. In constant currency full year sales rose 13%, nearly twice the rate of global prestige beauty and diluted EPS increased 24%. What made our performance particularly strong were our over achievements in Asia and in Skin Care globally. </em><em>” </em>
</blockquote><div class="content-remarks"><p>Fabrizio Freda, CEO Estee Lauder</p></div><div class="content-remarks">
<blockquote><p><em>‘But the market and gender norms are changing, with cosmetics no longer seen as exclusively for women and male celebrities showing that it is OK for men to dab on a bit of blush. Jiang says a firm that manages bloggers pays him about 5,000 yuan (US$730) per month to feature products from cosmetics companies. Increasingly, foreign firms like La Mer and Aesop work with video bloggers such as Lan Haoyi, to promote their products to his nearly 1.4 million followers.</em>’</p></blockquote>
<p>From a recent SCMP article</p>
</div>

‘“I try to use a facial pack every night,” says Mr. Kim, 28 years old, who now works at an office in Seoul. “It’s been a daily routine since my time in the military.” South Korea is a force in the global beauty industry and its carefully groomed pop idols have become global stars. And for many guys here, the gateway to face serums and 10 step skin care regimens is their time as military conscripts. During his service, Mr. Kim developed a routine while posted at an observation post along the barbed wire fences of the inter-Korean demilitarized zone.’ WSJ article on the elaborate skincare rituals of S. Korean men
“Fiscal year 2018 was an outstanding year for our company. By focusing on strategic priorities and investing in our multiple engines of growth, we delivered double-digit sales and earnings per share gains in all four quarters. In constant currency full year sales rose 13%, nearly twice the rate of global prestige beauty and diluted EPS increased 24%. What made our performance particularly strong were our over achievements in Asia and in Skin Care globally. ” 
Fabrizio Freda, CEO Estee Lauder
‘But the market and gender norms are changing, with cosmetics no longer seen as exclusively for women and male celebrities showing that it is OK for men to dab on a bit of blush. Jiang says a firm that manages bloggers pays him about 5,000 yuan (US$730) per month to feature products from cosmetics companies. Increasingly, foreign firms like La Mer and Aesop work with video bloggers such as Lan Haoyi, to promote their products to his nearly 1.4 million followers.’
From a recent SCMP article


Korean Men Leading Next Asian Skincare Boom

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p>In this report, we provide various data analysis of the major Korean cosmetics companies. Korea has become the world's fourth largest cosmetics exporting country in the world, after France, US, and Germany. There are many public cosmetics companies to choose from in the Korean stock market. We have chosen the 17 companies listed below. There are several more cosmetics related IPOs coming up in Korea in 2017 including <a href="https://www.smartkarma.com/entities/24168" target="_blank" data-smartkarma-citation="entities:24168:1">Outin Futures Inc. (227610 KS)</a> (see our report <a href="https://www.smartkarma.com/insights/outin-futures-corp-ipo-preview-part-1" target="_blank" data-smartkarma-citation="insights:11212">Outin Futures Corp IPO Preview</a>…</p>

In this report, we provide various data analysis of the major Korean cosmetics companies. Korea has become the world's fourth largest cosmetics exporting country in the world, after France, US, and Germany. There are many public cosmetics companies to choose from in the Korean stock market. We have chosen the 17 companies listed below. There are several more cosmetics related IPOs coming up in Korea in 2017 including Outin Futures Inc. (227610 KS) (see our report Outin Futures Corp IPO Preview…

Data Analysis of Major Korean Cosmetics Companies: Why Are ODMs Outperforming Brand Companies?

Equity Capital Markets

<ul><li><strong><a href="https://www.smartkarma.com/entities/23610" target="_blank" data-smartkarma-citation="entities:23610:1">Englewood Lab (950140 KS)</a> </strong>held an IR presentation to investors on September 23rd in Seoul. The Founder&amp; CEO Mr. David Chung was the key presenter. We came away from the meeting with a positive impression of the company. Englewood Lab is an original design manufacturing (ODM) cosmetics company based in the US. Established in 2004, Englewood Lab generates 100% of its sales to North American clients. For the past decade, the company's focus has been on the foundation skin care cosmetics products. Despite its small size, Englewood Lab IPO could be one of the big winners. <strong>This one is unique because it is a rapidly growing, profitable US based company that is trying to list its shares on the Korea Stock Market. </strong></li><li>The company possesses more than 60 customers, all of them in North America. Some of the well-known customers are as follows: Elizabeth Arden, Arbonne, (Clinique) Estee Lauder Group, Kiehl's (L'Oreal), Mary Kay, and Benefit (LVMH).</li><li>One of the key reasons the company has been able to grow its sales by more than 10x from 2009 to 2015 was because its products used special ingredients that the US consumers liked. For example, the company has been having excellent success with skin care products with <em>Echinacea purpurea</em>, or purple coneflower, ingredients which have shown to have impressive immune-boosting and restorative properties. (<a href="http://www.bloomberg.com/news/articles/2015-09-24/farmacy-skin-care-from-farm-to-face-with-help-from-sephora" target="_blank">http://www.bloomberg.com/news/articles/2015-09-24/farmacy-skin-care-from-farm-to-face-with-help-from-sephora</a>)</li></ul>

Englewood Lab (950140 KS) held an IR presentation to investors on September 23rd in Seoul. The Founder&amp; CEO Mr. David Chung was the key presenter. We came away from the meeting with a positive impression of the company. Englewood Lab is an original design manufacturing (ODM) cosmetics company based in the US. Established in 2004, Englewood Lab generates 100% of its sales to North American clients. For the past decade, the company's focus has been on the foundation skin care cosmetics products. Despite its small size, Englewood Lab IPO could be one of the big winners. This one is unique because it is a rapidly growing, profitable US based company that is trying to list its shares on the Korea Stock Market. The company possesses more than 60 customers, all of them in North America. Some of the well-known customers are as follows: Elizabeth Arden, Arbonne, (Clinique) Estee Lauder Group, Kiehl's (L'Oreal), Mary Kay, and Benefit (LVMH).One of the key reasons the company has been able to grow its sales by more than 10x from 2009 to 2015 was because its products used special ingredients that the US consumers liked. For example, the company has been having excellent success with skin care products with Echinacea purpurea, or purple coneflower, ingredients which have shown to have impressive immune-boosting and restorative properties. (http://www.bloomberg.com/news/articles/2015-09-24/farmacy-skin-care-from-farm-to-face-with-help-from-sephora)

Englewood Lab IPO Preview (Part 1) - CEO Presentation to Investors

<ul><li>We highlight 9 major new innovative products in the Korean F&amp;B sector introduced in the past six months that are having significant impact on the consumer buying patterns.  </li><li>Bottom line is that the companies that are introducing innovative food products that consumers like often end up with higher share prices. Average share prices of the eight companies with new, recent innovative food products (excluding <a href="https://www.smartkarma.com/entities/22709" target="_blank" data-smartkarma-citation="entities:22709">Haitai Confectionery &amp; Foods</a> , which has had a phenomenal post IPO performance) are up 2% YTD, outperforming KOSPI which is down 0.3% YTD. </li><li>Recent, new innovative products in the Korean F&amp;B sector include <a href="https://www.smartkarma.com/entities/7615" target="_blank" data-smartkarma-citation="entities:7615">Orion Corp</a> 's Choco Banana Pie, <a href="https://www.smartkarma.com/entities/22709" target="_blank" data-smartkarma-citation="entities:22709">Haitai Confectionery &amp; Foods</a> 's Takoyaki Balls, <a href="https://www.smartkarma.com/entities/1970" target="_blank" data-smartkarma-citation="entities:1970">Cj Cheiljedang Corp</a> 's Petitzel Eclair, and <a href="https://www.smartkarma.com/entities/16050" target="_blank" data-smartkarma-citation="entities:16050">Lotte Confectionery Co Ltd</a> 's Mongshell Choco Banana. </li></ul>

We highlight 9 major new innovative products in the Korean F&amp;B sector introduced in the past six months that are having significant impact on the consumer buying patterns.  Bottom line is that the companies that are introducing innovative food products that consumers like often end up with higher share prices. Average share prices of the eight companies with new, recent innovative food products (excluding Haitai Confectionery &amp; Foods , which has had a phenomenal post IPO performance) are up 2% YTD, outperforming KOSPI which is down 0.3% YTD. Recent, new innovative products in the Korean F&amp;B sector include Orion Corp 's Choco Banana Pie, Haitai Confectionery &amp; Foods 's Takoyaki Balls, Cj Cheiljedang Corp 's Petitzel Eclair, and Lotte Confectionery Co Ltd 's Mongshell Choco Banana. 

Innovative Foods = Portfolio Outperformance

South Korea

HANKOOK COSMETICS CO., LTD. manufactures and sells a variety of cosmetics. The Company markets its products under the brand names Calli, Idem, Elesis, Ossion, and Pamess.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hankook Cosmetics (123690 KS)

Korean Men Leading Next Asian Skincare Boom

WSJ article on the elaborate skincare rituals of S. Korean men “Fiscal year 2018 was an outstanding year for our company. By focusing on strategic...

Sean Maher

Data Analysis of Major Korean Cosmetics Companies: Why Are ODMs Outperforming Brand Companies?

In this report, we provide various data analysis of the major Korean cosmetics companies. Korea has become the world's fourth largest cosmetics...

Douglas Kim

Englewood Lab IPO Preview (Part 1) - CEO Presentation to Investors

Englewood Lab (950140 KS) held an IR presentation to investors on September 23rd in Seoul. The Founder& CEO Mr. David Chung was the key...

Douglas Kim

Innovative Foods = Portfolio Outperformance

We highlight 9 major new innovative products in the Korean F&B sector introduced in the past six months that are having significant impact on...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)