Investment advice
In February and the 3.8 tiktok + sales of voice sales, the main segments of the track (efficacy skin care, high-end skin care / makeup, makeup artists brand) continued to outperform the market, brand differentiation intensified, recommended comprehensive ability, great performance, excellent performance, Q1 performance is expected to be beautiful Yunnan Botanee Bio-Technology Group Co.Ltd(300957) / Proya Cosmetics Co.Ltd(603605) Bloomage Biotechnology Corporation Limited(688363) Lushang Health Industry Development Co.Ltd(600223) ; Since March, the epidemic situation in China has been sporadic and local outbreak. Under the background of normalization of epidemic prevention and control, benefiting from the improvement of public awareness of home disinfection, the demand for household disinfection products is expected to grow rapidly in the short term. It is suggested to pay attention to Jieya, a leading manufacturer of hand sanitizer blue moon and bacteriostatic disinfection wet towel.
This week’s view
Since March, the epidemic situation in China has shown a multi-point sporadic and local outbreak trend. On March 12, there were more than 1000 newly confirmed local cases / asymptomatic infections, reaching 1807 and 1315 respectively. This round of epidemic has affected a wide range and a wide range of people, and has affected more than 20 provinces in China. As of 23:00 on March 12, there were 14 high-risk areas and 211 medium-risk areas in China. Under the background of normalization of epidemic prevention and control, benefiting from the improvement of public awareness of home disinfection, the demand for home disinfection has gradually become a rigid demand, and the penetration rate of personal / home cleaning and care products is expected to be further improved.
Market Review
This week (3.7 ~ 3.11), the Shanghai Composite Index, Shenzhen Component Index and Shanghai and Shenzhen 300 fell 4.00%, 4.40% and 4.22% respectively, and the cosmetics sector fell 4.71%, underperforming Shanghai and Shenzhen Inner Mongolia Furui Medical Science Co.Ltd(300049) pct.
In terms of sector comparison, cosmetics is located in the middle and lower reaches of the industry.
In terms of individual stocks, Proya Cosmetics Co.Ltd(603605) , Guangzhou Ruoyuchen Technology Co.Ltd(003010) led the gains, while blue moon group, baozun e-commerce and Yixian e-commerce led the declines.
Industry dynamics
Industry news: during the “3.8” festival, Proya Cosmetics Co.Ltd(603605) boarded Tmall beauty industry TOP5, Tmall international cosmetics TOP1, Jingdong international skin care TOP1, and the event was “tiktok beauty blue V ranking” on the day of the event. Bawei shares entered the listing guidance period of the Beijing stock exchange; On March 11, Aoki Co., Ltd., an e-commerce service provider of beauty brands such as filoga and lifuquan, was listed on the Shenzhen Stock Exchange; Under the conflict between Russia and Ukraine, a number of cosmetics enterprises announced to suspend business in Russia; The food and Drug Administration issued the latest answer to clarify the implementation details of efficacy supervision.
Key announcement: Jahen Household Products Co.Ltd(300955) , a wholly owned subsidiary of Huzhou, has obtained the “cosmetic production license” of the general liquid unit and the cream emulsion unit, which has the production conditions of children and eye care products. Proya Cosmetics Co.Ltd(603605) 2022: from January to February, the revenue was about 630 million yuan, an increase of about 30% at the same time, and the net profit attributable to the parent company was about 60 million yuan, an increase of about 35% at the same time; During the 38 tiktok campaign, the main brand Proya Cosmetics Co.Ltd(603605) Tmall official flagship store increased by 200% or more, and the turnover volume of the shaking platform increased by 100%. Bloomage Biotechnology Corporation Limited(688363) 21 annual revenue was 4.948 billion yuan, with an increase of 87.93%, and net profit attributable to parent company was 782 million yuan, with an increase of 21.13%; From January to February 2022, the total operating revenue was about 640 million yuan, an increase of about 55% at the same time 6 Qiming Information Technology Co.Ltd(002232) 022: from January to February, the cosmetics sector achieved revenue of 220 million yuan, an increase of 146.7% at the same time; The revenue of raw materials and additives was 45.17 million yuan, an increase of 12.4%.
Risk tips
The development of new products / marketing / channels is less than expected; Loss of key customers of production / agent operators.
