Plate Market Review:
This week (12.27 ~ 12.31), Shenwan beauty care sector – 0.58%. Shanghai Composite Index and gem index were + 0.60% and + 0.78% respectively. Shenwan beauty care sector lost 1.18 PCT to Shanghai Composite Index and 1.36 PCT to gem index.
From the beginning of the year to the end of this week (1.1 ~ 12.31), Shenwan beauty care sector + 0.13%. Shanghai Composite Index + 4.8%, gem index + 12.02%. Outperformed the Shanghai Composite Index by 4.67 PCT and the gem by 11.89 PCT.
Wind medical beauty and cosmetics index: this week, CSI 300 index + 0.39%, wind medical beauty index + 1.20%, outperforming CSI 300 market by 0.81pct; Wind cosmetics index + 0.59%, outperforming the Shanghai and Shenzhen 300 market by 0.20pct.
Industry highlights:
The State Food and Drug Administration issued the revision instructions for the catalogue of class I medical devices, and the new category I catalogue limits the scope of physical cooling products. The product description, intended use and product name examples of the third item of “09-02-03 physical cooling equipment” in the 2017 catalogue have been standardized and modified. In addition to limiting the composition, it is limited to “local cooling for febrile patients. It is only used for complete skin on the body surface”, In the name of the name, the medical cold patch, medical cold compress headband, medical cold compress mask and cold compress gel were deleted. It is clearly required that when filing such products, the name of “example of product name” in the catalogue shall be directly used, the product description shall specify the specific components of the product, and the expected use shall not exceed the expected use specified in the catalogue, so as to further standardize the filing of such products and purify the market environment.
Company announcement:
Sihuan pharmaceutical: Yaozhong international, a subsidiary, reached an agreement with the original shareholders of Genesis in the United States to acquire all the shares of Genesis. Genesis is mainly engaged in the development, manufacturing and distribution of beauty equipment, focusing on microchannel systems and fat collection products for beauty and skin care treatment and plastic surgery.
Huadong Medicine Co.Ltd(000963) : Zhongmei Huadong, a wholly-owned subsidiary, has signed the restructuring investment agreement with Huachang high tech, which is bankrupt and restructured. It will acquire 100% of its equity and invest 108 million yuan in the form of capital increase. In addition, it is planned to complete the reasonable planning and new investment in Huachang high tech’s production line and public system by the end of March 2022.
Investment advice
Key events this week: 1. The food and Drug Administration issued the catalogue of class I medical devices; 2. Sihuan pharmaceutical will acquire all shares of Genesis in the United States; 3. Huadong Medicine Co.Ltd(000963) will acquire 100% equity of Huachang high tech.
(1) Cosmetics industry: according to Amoy data, the Gmv of Amoy skin care in December was RMB 11.082 billion, a year-on-year increase of – 27.26%. Among the domestic skin care brands, the Gmv of Winona’s official flagship store is 280 million yuan (YoY + 217%), showing outstanding performance. Amoy cosmetics Gmv was RMB 5.634 billion, a year-on-year increase of – 24.03%. Among them, Proya Cosmetics Co.Ltd(603605) Caitang performed well, and the official flagship store Gmv increased by 72% year-on-year. 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 needs; [ 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 statement
Risk of intensified industry competition; Uncertainty of industry regulatory policies; Macroeconomic fluctuations, etc.
