Market Review
Last week (03.21-03.25), the CSI 300 index fell 2.14%. According to the statistics of the key weight companies selected by us (listed in the 1.1 sector Market in detail), the beauty care industry portfolio rose 0.69%, of which medical beauty / cosmetics / personal care products rose 0.74% / Rose 2.75% / fell 1.42% respectively.
Since the beginning of the year, the CSI 300 index has fallen by 15.50%. According to the statistics of the key weight companies selected by us (listed in the market of 1.1 sector in detail), the beauty care industry portfolio has fallen by 21.17%, of which the medical beauty / cosmetics / personal care products have fallen by 22.76% / 18.54% / 22.20% respectively.
In terms of valuation, as of March 25, the price earnings ratio (TTM) of beauty care (801980. SI) was about 44.17x, which was at the quantile value of 23.30% in two years.
Small topic: botulinum toxin is adding another member to the research products, and the competition pattern may change rapidly in the medium and short term
The characteristics of strong penetration potential and high repurchase rate strongly support the high growth of botulinum toxin market in Yimei. In addition to the strong penetration potential of the medical and American market as a whole, botulinum toxin products have the characteristics of high repurchase rate (generally the maintenance time of efficacy is only 4-6 months), corresponding to the rapid growth of market scale. In the future, driven by the continuous development of medical beauty injection treatment services and the increasing variety of medical beauty botulinum toxin products, China’s medical beauty botulinum toxin market is expected to reach 11.4 billion yuan in 2025, with a compound annual growth rate of about 23.9% from 2020 to 2025.
There are only 4 botulinum toxin products listed in China, and the competition pattern in subdivided fields has been relatively stable in the past decade. Before 2020, there were only two compliant botulinum toxin products in the market, namely, imported products baotuoshi and domestic products Hengli, which achieved better satisfaction of high and low-end demand respectively. In the context of the rapid development of injection therapy consumption in the United States and medicine, Chinese manufacturers have gradually increased their R & D layout in the field of botulinum toxin. At present, China is mainly developing seven kinds of botulinum toxin products. With a number of products under research / approval approved for listing, the competition in the field of botulinum toxin in the United States and the United States may increase significantly in the medium and short term.
The logic of the penetration potential of yimeiqiang is stable. The leading R & D strength of yimeiqiang pharmaceutical machinery is good, the layout is wide, the priority benefit is given, and the growth certainty is strong. We believe that the current valuation of the sector is reasonable and continue to be optimistic about Imeik Technology Development Co.Ltd(300896) . We suggest paying attention to Bloomage Biotechnology Corporation Limited(688363) , Shanghai Haohai Biological Technology Co.Ltd(688366) , Furui medical technology, Lushang Health Industry Development Co.Ltd(600223) , etc.
Key industry trends
The recombinant botulinum toxin type a independently developed by Yinming biology was approved to enter Chinese clinical practice; New varieties of hyaluronic acid appeared; Cosmetics filing is imminent; The introduction of new regulations on the production and operation of medical devices; China Plastic Surgery Association issued an industry proposal; Hong Kong’s major cosmetics sales fell 20% in February.
Announcement of key companies
Yunnan Botanee Bio-Technology Group Co.Ltd(300957) 2021, the revenue increased by 52.57% to RMB 4.022 billion, and the net profit increased by 58.77% to RMB 863 million; The overall growth rate of medical oxygen industry exceeded 30.7% in 2021; Kangzhe pharmaceutical’s revenue in 2021 was 8.337 billion yuan, a year-on-year increase of 20.0%, and Yimei entered the harvest period Kontour(Xi’An) Medical Technology Co.Ltd(688314) 2021 net profit increased by 56% year-on-year, extending the new field of Stomatology; Medium and high-end chain oral Ruier group is listed on the Hong Kong Stock Exchange; Xingkerong pharmaceutical signed the acquisition project of Demei medical beauty agency and overweight the medical beauty track Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) the actual controller has cashed out 250 million, and then threw away the seventh round of reduction.
Risk tips
Risk of changes in industrial policies; The terminal demand is lower than expected.
