Investment advice
It is suggested that the impact of new regulations and channel changes (tiktok rise) on industry should be concerned. 1) tiktok tiktok: the rise of trill, the diversion of Amoy system, the monopoly or the end of 21H2, the international head brand has been shaking, the tiktok “de centralization” flow strategy has been supporting the store broadcasting, and the test has been a test of the brand independent investment. 2) New regulations: over the past 22 years, Guangzhou / Shanghai and other municipal supervision bureaus have issued publicity on non-compliance cases of cosmetic product filing / testing institutions. In the era of new regulations, the supervision continues to be stricter, the brand competition returns to the product power, and it is good for the head brand with strong R & D strength / product power. Under the stricter supervision + flow decentralization, it is good for the multi category / brand Top brands with multi-channel / platform operation capability Yunnan Botanee Bio-Technology Group Co.Ltd(300957) / Proya Cosmetics Co.Ltd(603605) / Bloomage Biotechnology Corporation Limited(688363) , and Lushang Health Industry Development Co.Ltd(600223) with preferred track and rising stage; Increase the demand for high-efficiency raw materials and benefit the head raw material suppliers, such as Nanjing Cosmos Chemical Co.Ltd(300856) .
Market Review
Last week, the Shanghai Composite Index fell 1.63% / the Shenzhen Component Index fell 1.35% / the Shanghai and Shenzhen 300 fell 1.98%, and the cosmetics sector rose 2.16%, outperforming the Shanghai and Shenzhen 3004.14pct, which is in the middle and upper reaches of the industry.
In terms of individual stocks, Syoung Group Co.Ltd(300740) , Jahen Household Products Co.Ltd(300955) , Guangzhou Ruoyuchen Technology Co.Ltd(003010) led the increase, Shanghai Jahwa United Co.Ltd(600315) , Yixian e-commerce and Chaoyun group led the decline.
Industry dynamics
Industry news: the filing of a cleansing product of borantang was rejected because its name contains “amino acids”, the relevant supervision has become stricter, and the confusion that the product name or efficacy claim is inconsistent with its formula composition is expected to be curbed; Shanghai market supervision bureau announced the results of supervision and random inspection of inspection and testing institutions in 2021. Only 12 of the 120 institutions passed, of which 2 of the 5 cosmetics inspection and testing institutions were notified by name, with a failure rate of 40%; On December 23, 2001, Furuida Jinyu Bio-Technology Co.Ltd(600201) and Shandong University established a probiotic collaborative innovation center to increase the application research of probiotics. On January 5, Furuida Jinyu Bio-Technology Co.Ltd(600201) and Qilu University of Technology (Shandong Academy of Sciences) held a signing ceremony to jointly build the “research center of biological functional materials”, and the two research and development centers were established, Or it will be a milestone for Freida Jinyu Bio-Technology Co.Ltd(600201) to explore the next hyaluronic acid industry in the cosmetics industry; Dow has been imposed anti-dumping duty. At present, the price of relevant raw materials has not been affected by the incident. Domestic raw materials manufacturers need to pay attention to the R & D capacity of cosmetic raw materials; Shiseido China has decided to sell its Za Jirui and Bomei brands. The transaction is expected to be completed in March this year. Shiseido group has begun to divest its affordable and popular cosmetics business. According to statistics, 15 brands have been sold in more than a year.
Key announcement: Mingchen Health Co.Ltd(002919) Peng Xiaoqing (1.01%) and Chen Dongsong (0.81%) of the company’s directors and executives plan to reduce their total holdings of no more than 553000 shares (0.45% of the total share capital) through centralized bidding or block trading in 6 months due to their personal capital needs; Syoung Group Co.Ltd(300740) forecast the annual performance in 2021 and the progress of providing guarantees for subsidiaries: the expected profit is 230 million yuan ~ 265 million yuan, with a simultaneous increase of 63.97% ~ 88.92%. The guarantees are all guarantees for wholly-owned subsidiaries, and the financial risk is controllable. The total amount of guarantees after guarantee is 1.536 billion yuan, accounting for 113.53% of the 20-year audited net assets; Proya Cosmetics Co.Ltd(603605) it is agreed that the company will uniformly lift the sales restriction for 22 incentive objects, with a total of 347200 shares (accounting for 0.17% of the total share capital) lifted, and the listing and circulation date is January 20, 2022; Hangzhou Onechance Tech Corp(300792) complete the industrial and commercial change registration; Northbell, a wholly-owned subsidiary of Fujian Green Pine Co.Ltd(300132) , obtained the utility model patent.
Risk tips
The development of new products / marketing / channels is less than expected; Loss of key customers of production / agent operators.
