This week’s view
According to the State Food and drug administration, since July 1, 2022, the registrant, filer and entrusted manufacturer of cosmetics shall organize the production of cosmetics in accordance with the requirements of the standard for the quality management of cosmetics production. If an enterprise that has obtained a cosmetics production license before July 1, 2022 needs to upgrade its plant facilities and equipment and other hardware conditions, it shall complete the upgrading and transformation before July 1, 2023 to make its plant facilities and equipment meet the requirements of the code for quality management of cosmetics production.
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 trade and retail (CITIC) index closed at 4082.26, down 0.27%, down 0.27% since the beginning of the year. The performance of the sector underperformed Shanghai and Shenzhen 300 in one week.
Company announcement
[ Shanghai Jahwa United Co.Ltd(600315) : Announcement on the progress of share repurchase through centralized bidding transaction]
[ Bloomage Biotechnology Corporation Limited(688363) : Announcement on the resignation of the company’s deputy general manager and core technicians]
Risk tips
The epidemic situation is repeated, the consumer demand is lower than expected, and the industry competition is intensified
