Review of sector Market:
This week (4.11 ~ 4.15), Shenwan beauty care sector rose 1.57%. Shanghai Composite Index and gem index were – 1.25% and – 4.26% respectively. Shenwan beauty care sector outperformed Shanghai Composite Index by 2.82 PCT and gem index by 5.83 PCT.
Wind medical beauty and cosmetics index: this week, the CSI 300 index was – 0.99%, and the wind medical beauty index was – 1.01%, underperforming the CSI 300 market by 0.02pct; The wind cosmetics index was – 0.18%, outperforming the CSI 300 market by 0.81pct.
Industry highlights:
(1) the voice and electric business released the March beauty industry explosion tiktok list, and Proya Cosmetics Co.Ltd(603605) and Winona accumulated sales volume to TOP10. From the single product, adorable beauty ACE Pro, CHCEDO cream, cream, and sunflower, the sun cream, GMV, the top three, Proya Cosmetics Co.Ltd(603605) , the GMV and so on. (official account of tiktok)
(2) cases of false publicity in the field of medicine and the United States were investigated and dealt with: the State Administration of market supervision held a special press conference on “2022 ‘iron fist’ action to investigate and deal with cases in the field of people’s livelihood”. In 2021, market supervision departments at all levels nationwide investigated and handled 94400 illegal cases of 8 categories. There were 8563 cases of unfair competition, with a fine of 573 million yuan, including 103 cases involving false publicity in the field of medicine and the United States, with a fine of 5.98 million yuan. (General Administration of market supervision and Administration)
(3) the quantity and amount of imported beauty cosmetics and toiletries decreased: in March, 358869 tons of beauty cosmetics and toiletries were imported, a year-on-year decrease of 12.97%, and the amount was 12.93 billion yuan, a year-on-year decrease of 14.37%. In the first three months, the total import was 975052 tons, a year-on-year decrease of – 2.9; The amount was 34.74 billion yuan, a year-on-year decrease of 6.2%. (General Administration of Customs of China)
Company announcement:
Imeik Technology Development Co.Ltd(300896) : the announcement on the implementation of dividend distribution in 2021 is issued. The profit distribution plan of the company plans to distribute cash dividends of RMB 21.00 (tax included) for every 10 shares to all shareholders based on the total share capital of 216 million shares at the end of 2021, with a total cash dividend of RMB 454356 million (tax included). The amount of cash dividends accounts for 47.44% of the net profit attributable to the owners of the parent company in the consolidated statements of the company in 2021.
Lushang Health Industry Development Co.Ltd(600223) : ① issue the annual report for 2021. In 2021, the company achieved revenue of 12.36 billion yuan (yoy-9.20%), net profit attributable to parent company of 360 million yuan (yoy-43.34%), and basic earnings per share of 0.36 yuan. In Q4 of 2021, the revenue was 6.01 billion yuan and the net profit attributable to the parent company was – 140 million yuan. ② The announcement of the profit distribution plan for 2021 was issued. Based on the company’s share capital of 1.01 billion shares as of the disclosure date of this plan, cash dividends were distributed to all shareholders, with a cash dividend of RMB 1.1 (including tax) for every 10 shares, a total of RMB 110 million was distributed, and the remaining undistributed profit (parent company) of RMB 190 million was carried forward to the following years. The capital reserve shall not be converted into share capital.
Investment advice
(1) cosmetics industry: the sales of cosmetics enterprises in 2022q1 is expected to maintain a rapid growth. According to the announcement of the company, Proya Cosmetics Co.Ltd(603605) Q1 revenue increased by 30% ~ 40% year-on-year Lushang Health Industry Development Co.Ltd(600223) from January to February, the revenue of cosmetics increased by about 147% year-on-year, and that of Yilian Q1 Amoy increased by about 44% Bloomage Biotechnology Corporation Limited(688363) from January to February, the revenue increased by about 55%, and the sales of mibel Q1 Amoy increased by about 56%. In the context of stricter supervision of the cosmetics industry, strong products + strong brands bring the possibility of breaking the brand circle, and continue to pay attention to the 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 impact of repeated outbreaks; The risk of intensified industry competition; Uncertainty of industrial regulatory policies; Macroeconomic fluctuations, etc.
