Review of sector Market:
This week (3.28 ~ 4.1), Shenwan beauty care sector rose + 3.48%, stronger than the market. Shanghai Composite Index and gem index were + 2.19% and + 1.10% respectively. Shenwan beauty care sector outperformed Shanghai Composite Index by 1.29pct and gem index by 2.38pct.
Wind medical beauty and cosmetics index: this week, CSI 300 index + 2.43%, wind medical beauty index + 1.43%, underperforming CSI 300 market by 1.00pct; The wind cosmetics index was + 0.03%, underperforming the CSI 300 market by 2.40pct.
Industry highlights:
1. The State Drug Administration issued the announcement on adjusting some contents of the classified catalogue of medical devices, which dynamically adjusted the contents of the classified catalogue of 27 kinds of medical devices. The specific adjustments of medical beauty products are as follows: (1) RF therapeutic instrument and RF skin therapeutic instrument are used to treat skin relaxation, reduce skin wrinkles, shrink pores, tighten and improve skin tissue, or treat acne and scars, or reduce fat (fat softening or decomposition), which are clearly regulated in accordance with class III medical devices. (2) Facial implant line, facial lifting line and facial cone lifting line are used to implant facial tissue to improve loose and sagging tissue and correct wrinkles. They are supervised according to class III medical devices. (3) Sodium hyaluronate solution for injection is used to inject into the dermis. It mainly improves the skin state through the moisturizing and hydrating effects of sodium hyaluronate and other materials. It is clearly regulated in accordance with class III medical devices.
2. The Chenopodium formosanum extract filed by bayote Biotechnology (Shanghai) Co., Ltd. has obtained the new raw material filing publicity, which is the sixth new raw material filed since the beginning of the year in 2022. The record number is Guozhuang Yuanbei Zi 20220006. The extract of Chenopodium can inhibit the glycosylation of collagen, reduce the aging caused by the production of glycosylated collagen in human skin, and can be used as a skin protective agent in all kinds of cosmetics. (State Food and Drug Administration)
3. (1) from 2016 to 2020, the number of people diagnosed and treated in Chinese beauty hospitals showed an upward trend. In 2020, affected by the epidemic, the growth rate slowed down. The number of people diagnosed and treated in China’s beauty hospitals was 8.893 million, a year-on-year increase of 6.16%. (2) In medical and aesthetic surgery, the consumption of surgical items is mainly concentrated in facial features plastic surgery, accounting for 24.74%; Among them, the consumption of nose synthesis, eye synthesis and face promotion accounted for 8.64%, 8.1% and 8% respectively. (prospective industry research institute)
Company announcement:
Shanghai Haohai Biological Technology Co.Ltd(688366) : the annual report for 2021 was released. In 2021, the company achieved a revenue of 1.77 billion yuan (YoY + 32.61%), a net profit attributable to the parent company of 350 million yuan (YoY + 53.10%), and a basic earnings per share of 2 yuan / share. In Q4 of 2021, the revenue was 490 million yuan and the net profit attributable to the parent company was 40 million yuan.
Sihuan pharmaceutical: released the annual performance announcement. In 2021, the company achieved revenue of 3.29 billion yuan (YoY + 34%), gross profit of 2.45 billion yuan (YoY + 28%), and basic earnings per share of 4.42 cents / share.
Investment advice
(1) cosmetics industry: under the background of stricter supervision of the cosmetics industry, strong products + strong brands bring the possibility of brand breaking, and continue to pay attention to 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.
