LG Household & Healthcare Ltd (051900.KS)

This started out being more of a consumer goods business, but their growth business was really cosmetics and beauty. Growth was coming out of China. Because of the escalation and development of the Thermal High-Altitude Defence system (THAD) in south Korea by the US, China was slightly nervous about their implementation, and became stricter with south Korea which impacted companies like this. She has been looking at this again, but is waiting to see what happens.

(A Top Pick Sept 30/16. Down 12%.) In Korea, they are home care and personal care. The growth is really in their cosmetics. In Canada they have the Face Shop stores, where they sell Korean cosmetics. The core business domestically is great and stable, but the growth in China is very strong. Chinese women are just starting to spend on cosmetics and facial care, and they love Korean brands. However, in Q2 South Korea deployed a terminal high altitude defence missile, and because of that the relationships with China has really become quite strained and are discouraging tourism to South Korea. This is still a great company.

Cosmetics and skincare, and is her play on beauty spending in China. If you look at serious spending in China, it is cosmetics and has doubled over the last 5 years, but is expected to continue to grow by double digits in the next few years. Dividend yield of 0.58%.