Review of sector Market:
This week (2.14 ~ 2.20), Shenwan beauty care sector rose by + 4.36%, stronger than the market. Shanghai Composite Index and gem index were + 0.80% and + 2.93% respectively. Shenwan beauty care sector outperformed Shanghai Composite Index by 3.56 PCT and gem index by 1.43 PCT.
Wind medical beauty and cosmetics index: this week, CSI 300 index + 1.08%, wind medical beauty index + 2.72%, outperforming CSI 300 market by 1.64pct; The wind cosmetics index was + 3.09%, outperforming the CSI 300 market by 2.01pct.
Industry highlights:
The 39th meeting of the Standing Committee of the 15th Shanghai Municipal People’s Congress voted and adopted the amendment to the regulations of Shanghai Municipality on the protection of minors. The newly revised regulations will come into force on March 1. Finally, a new provision was added to the regulations, that is, “no medical beauty services shall be provided to minors without the consent of their parents or other guardians.” (Shanghai People’s Congress)
Company announcement:
Sihuan pharmaceutical: in response to the market speculation on the potential impact of Hugel acquisition on the cooperative relationship between the group and Hugel, the management of CBC group and the management of the group reached a consensus. As an important exclusive strategic partner of Hugel in China, CBC group plans to further promote and strengthen the strategic cooperation between Hugel and the group in China, These products include but are not limited to botulinum toxin letiport and hyaluronic acid.
Proya Cosmetics Co.Ltd(603605) : the announcement on the results of directors’ share reduction was issued. Mr. Fang Yuyou reduced 5.864 million shares of the company through centralized bidding and block trading, accounting for 3% of the current total share capital of the company. As of the disclosure date of this announcement, Mr. Fang Yuyou now holds 36.348 million shares of the company, accounting for 18% of the current total share capital of the company.
Suning Universal Co.Ltd(000718) : issue the employee stock ownership plan for 2022. The planned shareholding scale shall not exceed 60 million shares, and the upper limit of shareholding scale accounts for about 2% of the total share capital of the company of 3.03 billion on the announcement date of the draft employee stock ownership plan. The total capital of the employee stock ownership plan shall not exceed 75 million yuan when it is established.
Investment advice
(1) cosmetics industry: a number of international cosmetics companies have successively announced their financial reports for 2021, and major international brands such as L’Oreal, Estee Lauder and Shiseido have achieved double-digit growth. More and more attention has been paid to the quality of cosmetics industry. In terms of channels, online traffic changes, and the shaking platform has gradually become a new beauty position. Strong products + strong brands bring the possibility of breaking the brand circle, and continue to pay attention to the head cosmetics brand with strong R & D ability and brand strength. Focus on: [ Yunnan Botanee Bio-Technology Group Co.Ltd(300957) ] subdivide the leaders in the field of sensitive muscle skin care; [ Proya Cosmetics Co.Ltd(603605) ] diversified high-quality brands; [ Shanghai Jahwa United Co.Ltd(600315) ] multi category development and continuous innovation to create new items; [ Guangdong Marubi Biotechnology Co.Ltd(603983) ] mainly focuses on medium and high-end, with rich marketing and distribution channels; [ Syoung Group Co.Ltd(300740) ] strong operation capacity and gradual improvement of category structure;
(2) medical beauty industry: the demand side of the medical beauty industry continues to expand, the supply side products are more diversified, and the policy side strengthens the supervision of medical beauty institutions and medical beauty products. We are optimistic about upstream medical and American enterprises with class III medical device certificate and perfect product matrix layout and downstream medical institutions with long-term standardized operation. Attention: [ Bloomage Biotechnology Corporation Limited(688363) ] local hyaluronic acid raw material leader; [ Imeik Technology Development Co.Ltd(300896) ] Tongyan needle is heavily listed and differentiated to meet higher demand; [ Huadong Medicine Co.Ltd(000963) ] overall layout of medical and American business; [ Shanghai Haohai Biological Technology Co.Ltd(688366) ] integration of R & D, production and sales; [tetracyclic medicine] botulinum toxin + double antibody go hand in hand; Pay attention to Lancy Co.Ltd(002612) and so on.
Risk tips
The risk of intensified industry competition; Uncertainty of industrial regulatory policies; Macroeconomic fluctuations, etc.
