Industry: emerging platforms, new categories and regularization trends breed development opportunities. (1) Cosmetics: the growth rate of the market is relatively flat, and emerging platforms such as Tiktok are rising rapidly. Affected by the overall pressure on optional consumption under the control of the epidemic, the growth rate of cosmetics above the quota in 2022q1 was only 1.8%. Among the online Alibaba and Tiktok platforms, the skin care / make-up categories on the Alibaba platform are flat, but the performance of domestic products is particularly outstanding. The Gmv of tmall flagship stores such as Proya Cosmetics Co.Ltd(603605) winona / kwadi / Caitang / maogeping has zero growth; Tiktok platform has been distributed by more and more Chinese and foreign brands, but the progress is quite different. The brands under Proya Cosmetics Co.Ltd(603605) Yunnan Botanee Bio-Technology Group Co.Ltd(300957) Bloomage Biotechnology Corporation Limited(688363) winona Tiktok in 2022q1 Proya Cosmetics Co.Ltd(603605) winona Gmv have exceeded 100 million. (2) Yimei: efforts to crack down on parallel goods and fake goods have been strengthened, and the demand for regular Shuiguang needles and recycled products is booming. 2022q1 medical and beauty industry has two major focuses: first, in March 2022, the new deal of Shuiguang needle was implemented, and Shuiguang needle was officially included in the management of class III medical devices, which is beneficial to the scarce formal class III medical device Shuiguang products in the market. In particular, hi body, as the only approved regular nutrient Shuiguang, is expected to accelerate its market share. Second, the demand for renewable products is booming, and regular manufacturers jointly promote the improvement of consumer cognition. Since the second half of 2021, three types of regular regeneration products have been approved successively, including Imeik Technology Development Co.Ltd(300896) the “white angel”, ” Huadong Medicine Co.Ltd(000963) the” girl’s needle “and Changchun Saint boma’s” child’s face needle “. In 2021, the total sales revenue of manufacturers of “moistening angel” and “girl needle” has exceeded 200 million yuan. At present, the number of certified doctors for several products is more than 300, so they are optimistic about the continuous volume of recycled products.
Individual stocks: showing a differentiation trend. The performance of leading companies is strong and more resilient under the epidemic Imeik Technology Development Co.Ltd(300896) : the revenue increased by 66.07% in 2022q1. Shuiguang needle benefited significantly from the new deal, and high-end products and hi body series continued to be in large volume Bloomage Biotechnology Corporation Limited(688363) : the revenue of 2022q1 increased by 61.57% at the same time, and the supermarket in the cosmetics sector is expected to grow. Yonghe medical: the revenue increased by 32.4% in 2021. The hair care business developed rapidly and the channel developed step by step Yunnan Botanee Bio-Technology Group Co.Ltd(300957) : the revenue of 2022q1 increased by 59.32% at the same time. The whole channel maintained rapid growth, and the concept of “sensitive muscle +” continued to expand Proya Cosmetics Co.Ltd(603605) : the net profit attributable to the parent company increased by 44.2% in 2022q1. The online direct business grew rapidly, and the second curve of Caitang advanced smoothly Shanghai Jahwa United Co.Ltd(600315) : the net profit attributable to the parent company increased by 17.81% in 2022q1, the profitability continued to improve, and the e-commerce maintained a good trend.
Investment suggestion: the 2021 annual report and 2022q1 performance of the leading companies in the medical beauty cosmetics sector are generally bright, which is more prominent in the optional consumer goods, driving the recent rebound in the valuation of the sector. We believe that the outstanding performance of leading companies in the sector is more a reflection of the continuous deepening of their own competitiveness. Although the sector as a whole has also been affected by the negative factors of the epidemic, the leading companies have deepened the moat by continuously developing multiple channels, developing new categories and new brands, which has become more resilient under the epidemic. At present, Yimei cosmetics sector is still at a low level. Although the trend of the epidemic is still uncertain, we are still optimistic about the high certainty and high growth of leading companies. We recommend paying attention to the main leading targets of the layout sector, such as Imeik Technology Development Co.Ltd(300896) , Bloomage Biotechnology Corporation Limited(688363) , Yonghe medical, Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Proya Cosmetics Co.Ltd(603605) , Shanghai Jahwa United Co.Ltd(600315) , Lancy Co.Ltd(002612) .
Risk tip: industry competition intensifies, business expansion is less than expected, epidemic impact, etc.
