CITIC Securities: Sino-Japanese geopolitics may catalyze demand for travel to South Korea.

The research report from CITIC Securities pointed out that the market's focus on South Korean consumer stocks mainly revolves around three aspects: 1) Geopolitical events bringing potential benefits to South Korean stocks related to China; 2) Global export trends of South Korean beauty products; 3) Trends in the domestic consumer market. Driven by expectations of tensions between China and Japan and the possibility of Chinese group tours being visa-free, South Korean stocks related to tourism with China have shown strong performance. According to CITIC CLSA's views, geopolitical tensions between China and Japan may further drive growth in Chinese tourists to South Korea, but the biggest beneficiaries may be South Korean cosmetics brands and ODM companies, rather than duty-free shops or casino operators.