This week’s view
On December 30, the State Food and Drug Administration issued the notice on the launch of cosmetic raw material safety information registration platform, which pointed out that since 9 a.m. on December 31, 2021, cosmetic raw material manufacturers or their authorized enterprises can log in to the platform to submit raw material safety related information. According to the regulations on the administration of cosmetics registration and filing data, from January 1, 2022, the raw material submission code of raw materials with anti-corrosion, sunscreen, coloring, hair dyeing, freckle removing and whitening functions shall be filled in for newly registered or filed cosmetics. From January 1, 2023, when applying for registration or filing, the registrant and the filer shall provide safety related information of all raw materials. For cosmetics that have previously been registered or filed, the registrant and the filer shall supplement the safety related information of all raw materials in the product formula before May 1, 2023.
China’s cosmetics R & D institutions are roughly divided into universities, scientific research institutes, academic specialized institutions and R & D departments of cosmetics brands or OEM factories. The stricter supervision of cosmetics raw materials will further raise the industry access threshold, improve the market concentration and benefit enterprises with strong R & D strength. For cosmetics, we recommend Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) , Shanghai Jahwa United Co.Ltd(600315) and Proya Cosmetics Co.Ltd(603605) . In addition, on June 10, 2021, the National Health Commission and other eight ministries and commissions jointly issued the special rectification work plan for combating illegal medical beauty services, and decided to jointly carry out the special rectification work for combating illegal medical beauty services from June to December 2021. As the special rectification work is coming to an end, it will help alleviate the pessimism of the capital market towards the medical beauty sector, We recommend Imeik Technology Development Co.Ltd(300896) which has strong R & D strength and gradual expansion of product matrix, and Lancy Co.Ltd(002612) and Huahan plastic surgery, which have rapid expansion of offline stores and pay attention to medical risk control. It is suggested to pay attention to Yonghe medical, the leading enterprise of planting, breeding and hair fixation, which is currently undergoing chain expansion nationwide.
Market performance
This week, the retail trade (CITIC) index closed at 4093.16, up 0.38%, up 1.99% since the beginning of the year. The performance of the sector underperformed Shanghai and Shenzhen 300 in one week.
Company announcement
[ Fujian Green Pine Co.Ltd(300132) : Announcement on the acquisition of invention patents and utility model patents by wholly-owned subsidiaries]
[ Proya Cosmetics Co.Ltd(603605) : Announcement on the progress of directors’ share reduction]
Risk statement
The epidemic situation is repeated, the consumer demand is lower than expected, and the industry competition is intensified.
