Review of sector Market:
This week (March 14 ~ March 18), Shenwan beauty care sector decreased by – 2.92%, weaker than the market. Shanghai Composite Index and gem index were – 1.77% and + 1.81% respectively. Shenwan beauty care sector lost 1.15pct to Shanghai Composite Index and 4.73pct to gem index.
Wind medical beauty and cosmetics index: this week, the CSI 300 index was – 0.94%, and the wind medical beauty index was – 4.20%, underperforming the CSI 300 market by 3.26pct; The wind cosmetics index was – 2.21%, underperforming the CSI 300 market by 1.27pct.
Industry highlights:
(1) the Statistics Bureau released the social zero data from January to February: from January to February 2022, the total retail sales of social consumer goods were 7442.6 billion yuan, a year-on-year increase of 6.7%, of which the online retail sales were 1955.8 billion yuan, a year-on-year increase of 10.2%; The total retail sales of cosmetics from January to February was 61.8 billion yuan, a year-on-year increase of 7.0%. (National Bureau of Statistics)
(3) Guangzhou Municipal Bureau of Supervision issued the “warm tips for ordinary cosmetics filers on matters such as product annual report, platform claim and supplementary recording of data”. According to the requirements, ordinary cosmetics filers should complete the annual report and product claim of the old system before March 31, and submit supplementary recording of product data of the old platform before May 1. If the filed ordinary cosmetics fail to submit the annual report, claim the products and supplement the data in time, the regulatory authorities will take measures such as canceling the filing. (Guangzhou market supervision and Administration Bureau)
Company announcement:
Shanghai Jahwa United Co.Ltd(600315) : the annual report of 2021 was released. In 2021, the company achieved a revenue of 7.65 billion yuan (YoY + 8.7%), a net profit attributable to the parent company of 650 million yuan (YoY + 50.9%), and a basic earnings per share of 0.97 yuan / share. In 2021q4, the revenue was 1.82 billion yuan and the net profit attributable to the parent company was 230 million yuan in a single quarter.
Sihuan pharmaceutical: it announced the acquisition of Shenzhen Yimei. Its subsidiary, Meiyan space, entered into an equity transfer agreement and capital increase agreement with Shenzhen Yimei and its original shareholders to invest in Shenzhen Yimei by means of equity transfer and capital increase. After completion, Meiyan space will hold 80% of the equity interests of Shenzhen Yimei. This acquisition will help the group expand its layout in the field of optoelectronic equipment.
Investment advice
(1) cosmetics industry: from January to February, the social zero data increased by 6.7%, and the overall consumption recovery was better than expected. Among them, cosmetics increased by 7%, and the cosmetics industry has strong toughness. In the context of stricter supervision of the cosmetics industry, strong products + strong brands bring the possibility of breaking the brand circle, and continue to pay attention to the head cosmetics brands with strong R & D ability and brand strength. Attention: [ Yunnan Botanee Bio-Technology Group Co.Ltd(300957) ] subdivide the leader 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) ] 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 differentiation meets higher demand; [ Huadong Medicine Co.Ltd(000963) ] overall layout of medical beauty business; [ Shanghai Haohai Biological Technology Co.Ltd(688366) ] integration of R & D, production and sales; [Sihuan medicine] botulinum toxin + double antibody go hand in hand; Pay attention to Lancy Co.Ltd(002612) etc. of the layout of downstream medical and aesthetic institutions.
Risk tips
The risk of intensified industry competition; Uncertainty of industrial regulatory policies; Macroeconomic fluctuations, etc.
