Market Review
Last week (04.06-04.08), the CSI 300 index fell 1.06%. 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 fell 4.25%, of which the medical beauty / cosmetics / personal care products fell 4.45% / 5.14% / 3.17% respectively.
Since the beginning of the year, the CSI 300 index has fallen by 14.36%. 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 23.69%, of which the medical beauty / cosmetics / personal care products have fallen by 24.77% / 22.34% / 23.96% respectively.
In terms of valuation, as of April 8, the price earnings ratio (TTM) of beauty care (801980. SI) was about 44.26x, falling back to the 2-year quantile of 23.30%.
Core view
Medical and beauty sector: since the beginning of the year, the epidemic in many places has repeatedly affected terminal consumption, especially in the context of the outbreak of the epidemic in first tier cities such as Shenzhen and Shanghai. We expect that after the epidemic is controlled, there will be a small peak of demand outbreak, and the annual growth rate of the industry may be “low before high”. In the long run, the Growth Logic of demand side penetration is stable. With reference to the international mature market, the market scale can be increased by 4-5 times. The supply side continues to benefit from industry compliance. Non compliant medical and American institutions and products are continuously attacked and squeezed out, which is expected to release several times the space in the formal market. From the perspective of industrial chain, the upstream presents a good competition pattern relying on qualification and technical barriers, and continues to be optimistic about the leading compliant medical and American pharmaceutical machinery with high growth certainty. It is recommended to recommend Imeik Technology Development Co.Ltd(300896) , and the related targets include Bloomage Biotechnology Corporation Limited(688363) , Shanghai Haohai Biological Technology Co.Ltd(688366) , Furui medical science and technology, etc.
Cosmetics sector: since 2022, the already stressed consumer demand has faced further challenges under the repeated disturbance of the epidemic in many places across the country. Among them, the retail sales of cosmetics showed strong resilience, and the main listed companies started well. With the increasing sense of identity of domestic products and the trend of branded and personalized consumption, the flow dividend of beauty care brands has risen rapidly, and the growth of functional skin care products and other segments is particularly significant. Continue to be optimistic about Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , which is the leading position in domestic anti allergy skin care products, and the relevant targets include Proya Cosmetics Co.Ltd(603605) , Bloomage Biotechnology Corporation Limited(688363) , Lushang Health Industry Development Co.Ltd(600223) , etc.
Key industry trends
Shuiguang needle and other medical and American implant materials are prohibited from being commissioned for production; Shuangmei subsidiary issued a statement on the recent fake “shuangmeiliyuan” products.
Announcement of key companies
Huadong Medicine Co.Ltd(000963) long acting three target agonist has been approved for overseas clinical trials for hypoglycemic and weight loss treatment Winner Medical Co.Ltd(300888) completed the repurchase of 6.7546 million shares at a cost of 500 million yuan Hangzhou Haoyue Personal Care Co.Ltd(605009) shareholder Wenzhou Outai terminated the reduction plan in advance, reducing 368500 shares in total Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) shareholder lixiu lifted the pledge of 3.89 million shares.
Risk tips
Risk of changes in industrial policies; The terminal demand is lower than expected.
