Market Review
Last week (12.20-12.24), the CSI 300 index fell 0.67%. According to the statistics of the key weight companies selected by us (listed in the 1.1 plate Market in detail), the beauty care industry portfolio fell 0.31%, of which the medical beauty / cosmetics / personal care products fell 0.55% / 0.37% / 0.02% respectively.
Since the beginning of the year, the CSI 300 index has fallen by 5.56%. According to the statistics of the key weight companies selected by us (listed in the market of 1.1 plate in detail), the beauty care industry portfolio has increased by 3.87%, of which the medical beauty / cosmetics / personal care products have increased by 47.33% / decreased by 7.63% / decreased by 28.08% respectively.
Core view
The growth rate of retail sales of cosmetics and daily necessities picked up slightly last month. In terms of online sales, by category: in November 2021, the online sales of beauty and skin care / body care / essential oil totaled 43.906 billion yuan, a year-on-year increase of 12%; The online sales of washing and cleaning agents / sanitary napkins / paper / aromatherapy totaled 16.049 billion yuan, a year-on-year increase of 8%; Online sales of cosmetics / perfume / cosmetics tools totaled 9 billion 602 million yuan, down 5% year-on-year. The online sales of household / personal cleaning tools totaled 2.827 billion yuan, a year-on-year increase of 6%; Online sales of hair care / wig reached 3.759 billion yuan, a year-on-year increase of 28%.
We believe that the growth certainty of the leading brands of compliant Yimei pharmaceutical machinery and cosmetics is good. After the early adjustment, the current sector valuation has dropped to a reasonable range. We continue to recommend Imeik Technology Development Co.Ltd(300896) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , and suggest paying attention to Lushang Health Industry Development Co.Ltd(600223) , Bloomage Biotechnology Corporation Limited(688363) , Shanghai Haohai Biological Technology Co.Ltd(688366) , etc.
Key industry trends
Weiya was fined 1.341 billion yuan for tax evasion. Beijing, Shanghai, Guangdong, Jiangsu and Zhejiang successively notified artists and anchors to conduct self-examination and correct tax related problems before the end of the year; Aierjian completed the acquisition of a medical beauty company and acquired the fat mass non-invasive body shaping treatment product portfolio.
Announcement of key companies
Huadong Medicine Co.Ltd(000963) the “internal struggle between mother and son” has made waves again, and it is more and more possible for Ningbo judgment company in East China to close down; Huadong Medicine Co.Ltd(000963) said that the company asked Sinclair Dutch factory to give priority to ensuring the supply of girls’ needles in the Chinese market; Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) strategic holding Datong Medical, aiming at the sales agency of Tongyan needle in Korea; Shanghai Haohai Biological Technology Co.Ltd(688366) it is proposed to use idle raised funds of no more than RMB 980 million for cash management.
Risk statement
Tip 1: risk of industrial policy change;
Tip 2: the terminal demand is less than expected.
