India cultivated diamond import and export data exceeded expectations, and the sector rose sharply across the board. In January 2022, the import and export data of cultivated diamonds in India exceeded expectations. Among them, the import volume of blanks was US $153 million, a year-on-year increase of + 77.3% and a month on month increase of + 16.2%; The import penetration rate was 11.2%, with a year-on-year increase of + 4.8 PCT. The export volume of bare drilling was 122 million US dollars, with a year-on-year increase of + 69.5% and a month on month increase of + 18.1%; Export penetration rate was 5.6%, year-on-year + 1.8 PCT. The early cultivation of diamond sector callback was mainly affected by the performance disturbance of leading companies and media reports. The sentiment of the sector has warmed up under the catalysis of higher than expected Indian data. We believe that technological breakthroughs, combined with intensive consumer education in recent years, have broad room for improving the medium and long-term penetration rate of diamonds. At present, the valuation of the main leading companies in the sector has reached a reasonably low level, that is, under the condition of basically good orientation, the valuation has a large degree of correction on the basis of q3-4 in 2021, and the cost performance of the current time point configuration has been significantly improved.
Under the catalysis of Valentine’s day and Lantern Festival, the turnover of tmall and jd.com cosmetics doubled year-on-year. According to green eye data, Tmall cosmetics 2022 Valentine’s day beauty and skin care, make-up, beauty and body equipment and other categories of turnover increased by 300% over the same period, of which the Lip Essence increased by 5 times, Sunscreen Spray and fixed makeup spray increased by nearly 4 times. Jingdong 2022 Lantern Festival sales of facial skin care products increased by more than 5 times, and the sales of perfume cosmetics and small cosmetics increased 2.4 times compared with the same period last year. According to the data of men’s make-up on double 11 in 2021 and Valentine’s day and Lantern Festival in 2022, men’s make-up has gradually entered the public’s vision. With the improvement of the aesthetic consciousness of the new generation of Chinese men and the enhancement of men’s skin care consciousness, men’s care has become one of the categories with obvious growth in China’s cosmetics market. In addition, odor economy has become another fast-growing category. In the context of consumption upgrading, the beauty industry continues to emerge new segmentation boom “tracks” to contribute new growth points to the industry. We should pay attention to the target of multi brand and multi segmentation “track” layout.
Investment suggestion: cultivate drilling – medium and long-term permeability has broad room for improvement. At present, the valuation of major leading companies in the sector has reached a low level. Continue to recommend Henan Liliang Diamond Co.Ltd(301071) , North Industries Group Red Arrow Co.Ltd(000519) , and pay attention to Henan Huanghe Whirlwind Co.Ltd(600172) , Sf Diamond Co.Ltd(300179) , Beijing Worldia Diamond Tools Co.Ltd(688028) and Sinomach Precision Industry Co.Ltd(002046) . Jewelry & mother and baby – it is suggested to focus on the gold jewelry leaders Chow Tai Seng Jewellery Company Limited(002867) , Guangdong Chj Industry Co.Ltd(002345) , Chow Tai Fook, Lao Feng Xiang Co.Ltd(600612) driven by the improvement of processing technology and the rise of national tide culture, and pay attention to the mother and baby leaders Kidswant Children Products Co.Ltd(301078) and Shanghai Aiyingshi Co.Ltd(603214) . Medical Beauty & beauty makeup – under the influence of the festival, the sales of beauty brands have increased year-on-year, and new growth points are emerging in the industry. Look at the national cosmetics related companies: the valuation has been greatly adjusted to a reasonable level, and the overall penetration is still low. It has the logic of innovation, consumption upgrading and domestic substitution, and has a strong driving force for growth. Maintain the “recommended” ratings of Imeik Technology Development Co.Ltd(300896) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Proya Cosmetics Co.Ltd(603605) . It is recommended to pay attention to Shanghai Jahwa United Co.Ltd(600315) with multi brand and multi segment “track” layout, and Nanjing Cosmos Chemical Co.Ltd(300856) , Jahen Household Products Co.Ltd(300955) with capacity + category expansion logic and expected to benefit from travel and industrial policies.
Risk tip: the overall consumer demand is weak and the industry competition is intensified
