AmorePacific chief beats Samsung head in stock value

AmorePacific CEO Suh Kyung-bae

By Kim Jae-won

AmorePacific’s chief has dethroned the head of Samsung Group in terms of stock value, thanks to the cosmetics company’s surprising performance this year, a corporate information provider said Friday.

Chaebul.com, a research firm that tracks the moves of owners of conglomerates, said stocks owned by AmorePacific CEO Suh Kyung-bae were valued at 12.1 trillion won ($11 billion) as of July 2, beating Samsung Chairman Lee Kun-hee, who saw his stock value reach 11.8 trillion won on the same day.

Suh’s stock assets have nearly doubled from 6.7 trillion won in early January on the rising price of AmorePacific and its affiliates. Shares of AmorePacific soared to 445,000 won on Thursday from 233,000 won on Jan. 2.

Lee’s stock value dropped 514.7 billion won, or 4.2 percent, in the period, placing him second.

“Shares of Samsung Electronics plunged from earlier this year, undermining Lee’s stock value,” said Jeong Seon-seob, CEO of Chaebul.com.

Analysts expect Suh’s stock value to continue increasing because the company’s business in China is thriving.

“Revenues from China are expected to account for 23.4 percent of the company,” said Lee Tal-mi, an analyst at Hyundai Securities, in a report. “The ratio will increase to 25.6 percent in 2016 and 29 percent in 2017.”

Suh is the second-largest shareholder of AmorePacific, owning 10.72 percent.

AmorePacific Group is the largest shareholder of the firm with 35.4 percent.

Lee said the company’s revenue will jump 27.4 percent to 4.9 trillion won this year from a year ago, driven by its duty free shops and television shopping channels. She said.

AmorePacific’s operating profit will rise 53.8 percent to 866.9 billion won during the period.

Samsung Electronics Vice Chairman Lee Jae-yong, Samsung’s heir, ranked third, with his stock assets dropping 232.1 billion won, or 2.5 percent, to 9.4 trillion won in the past six months. SK Group Chairman Chey Tae-won was fourth with 4.7 trillion won, up 898.5 billion won, or 23.7 percent, during the period.

Hyundai Motor Group Chairman Chung Mong-koo slipped to fifth-richest man in stock value, owning shares worth 4.5 trillion won as of Thursday, down 1.5 trillion won, or 24.9 percent, from Jan. 2. This is largely because Chung sold his stake in Hyundai Glovis in February and shares of Hyundai Motor dropped to 140,000 won from 169,000 won during the period.