Market review: the valuation continued to digest and the stock price stabilized in a single month
Monthly sales: the skin care category is restored, and the color makeup is relatively flat
Update: there are few product records, and update focuses on whitening
Regulatory progress: strengthen media review and promote publicity norms
Investment outlook for 2022:
Key points of investment in cosmetics industry: in the period of rapid growth, the industry pays attention to structural growth opportunities, the pattern optimization brought by the gradual liquidation of disorderly supply, and the accelerated landing of new brands of leading companies.
1) breakdown growth: in 2022, we believe that fine molecule industries in the cosmetics industry, such as dermatology grade skin care products and makeup categories in color makeup, still have good structural growth opportunities; 2) Supply optimization: the marginal decline of e-commerce’s customer acquisition effect, the marginal decline of the primary market’s investment enthusiasm for cosmetics, especially cosmetics, and the implementation of new cosmetics regulations in 2022 are conducive to the optimization of the industry’s supply side, and high-quality brands will usher in an era of improved competition pattern; 3) Brand matrix: specific to the brand side, the construction of quadratic growth curve is still the core focus.
Key points of investment in the medical and beauty industry: sustained high prosperity based on the low penetration rate of the industry, stricter supervision, compliance products to undertake the market and the cultivation of new products of leading companies.
1) industry prosperity: we believe that the penetration rate of the medical and beauty industry in the population is still low, and the faster popularization of injection and photoelectric products itself is conducive to reducing the entry threshold of the industry, and the maintenance of prosperity is still a high probability event; 2) Stricter supervision: the stricter supervision of medical beauty products will help eliminate the unlicensed medical beauty product market, and the listed companies operating in compliance will usher in the window period of undertaking this part of the market space; 3) Product echelon: of Yimei products company α The sustainability of capacity and growth still depends on the cultivation of new products. The three new recycled materials in 2021 are expected to achieve phased sales results after continuously cultivating the market in 2022.
Investment perspective in March 2022:
Imeik Technology Development Co.Ltd(300896) recently disclosed the 2021 annual report. Although the performance forecast has been released in the early stage, the bright 2021q4 revenue scale month on month growth and rich pipeline reserves make the company’s stock price performance gradually stabilize; At the same time, we found that the valuation of most stocks in the sector has been significantly corrected from the high point, and the valuation digestion range of Imeik Technology Development Co.Ltd(300896) and Yunnan Botanee Bio-Technology Group Co.Ltd(300957) is relatively higher. We believe that adhering to the performance growth elasticity at the current time point is still a better strategy. Combined with the digestion range of valuation, we focus on recommending Imeik Technology Development Co.Ltd(300896) , which has a high prosperity of the track and new products. Yubai angel is continuously cultivating Imeik Technology Development Co.Ltd(300896) , and the main brand has a stable market position and orderly reserves Yunnan Botanee Bio-Technology Group Co.Ltd(300957) . Shanghai Jahwa United Co.Ltd(600315) and Proya Cosmetics Co.Ltd(603605) , whose valuation is relatively low and the multi brand matrix continues to exert its power, and Proya Cosmetics Co.Ltd(603605) and the brand power of the main brand are still in the improvement cycle and the promotion of sub brands is accelerating.
Risk tips
Major negative regulation in the industry;
The deterioration of competition pattern affects the profitability of enterprises.
