Market Review
Last week (04.11-04.15), the CSI 300 index fell 0.99%. 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 0.71%, of which medical beauty / cosmetics / personal care products rose 0.66% / fell 0.52% / Rose 3.17% respectively.
Since the beginning of the year, the CSI 300 index has fallen by 15.21%. 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 23.05%, of which the medical beauty / cosmetics / personal care products have fallen by 24.18% / 22.56% / 22.42% respectively.
In terms of valuation, as of April 15, the price earnings ratio (TTM) of beauty care (801980. SI) was about 45.07x, which was at the quantile of 28.16% in two years.
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 Shanghai, Shenzhen and Guangzhou. We expect that after the epidemic is controlled, terminal consumption may usher in 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 demand side has faced further challenges under the background of repeated disturbance of the epidemic in many parts of the country. At the same time, in terms of supply, the rising prices of raw materials and packaging materials and tight logistics have driven the rising costs, and the overall performance of the cosmetics market is relatively low. However, from the disclosed operating data, the major listed companies in the industry have maintained a good start. In our opinion, with the increasing sense of identity of domestic products and the trend of branding and personalized consumption, the beauty care brands grasp the rapid rise of flow dividends and continue to be optimistic about Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , which is the leading domestic anti allergy skin care products. Relevant targets include Proya Cosmetics Co.Ltd(603605) , Bloomage Biotechnology Corporation Limited(688363) , Lushang Health Industry Development Co.Ltd(600223) , etc.
Key industry trends
The State Administration of market supervision said that nine types of illegal acts in the field of medical and beauty will be investigated and dealt with; The strictest regulations on children's cosmetics are coming; Class I cold compress still has a sales transition period; NMN new raw material No. 007 was successfully filed; The China Integration Association announced a number of pilot medical and American institutions for "code scanning and truth verification".
Announcement of key companies
6 Qiming Information Technology Co.Ltd(002232) 021 net profit attributable to the parent company was 362 million, a year-on-year decrease of 43.34%; Sihuan medicine "maiden needle" officially launched nmpa registered clinical research Bloomage Biotechnology Corporation Limited(688363) plans to participate in the establishment of private equity funds to explore the brand ecological layout in the field of Dermatology Winner Medical Co.Ltd(300888) plans to acquire 55% equity of Zhejiang Longtai medical with 728 million yuan in cash Fujian Green Pine Co.Ltd(300132) said that the production work of northbell factory is normal at present; Jinbo biological issue base price released Chongqing Baiya Sanitary Products Co.Ltd(003006) "free point" spurts nationalization, adding three production lines every year to accelerate expansion Winner Medical Co.Ltd(300888) 2022 has donated 6 batches of epidemic prevention materials to all sectors of society.
Risk tips
Risk of changes in industrial policies; The terminal demand is less than expected.
