This week’s view
In order to help the high-quality development of China’s medical and beauty industry and improve the level of industry norms and social supervision, on January 18, 2022, the release ceremony of the 2022 standard operation guide for medical and beauty institutions and the launch ceremony of the “three formal medical and beauty platforms” sponsored by China plastic and Beauty Association, CO sponsored by people’s health and supported by Yuanxiang biology and Mingyi Zhizao technology were held in Beijing. The “three regular medical beauty platform” publishes the list of regular hospitals, regular doctors and regular products in the industry, and provides the list of class a institutions and the price index of common or popular medical beauty projects. The price index is not mandatory and is only for the reference of beauty doctors. The price index is not used as the basis for negotiation or pricing.
We believe that with the release of the 2022 standard operation guide for medical and beauty institutions and the launch of the “three formal medical and beauty platforms”, the medical and beauty industry will be further standardized and transparent, which is conducive to the operation of legal and compliant medical and beauty institutions. In the cosmetics sector, 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) with strong brand strength and strong R & D and marketing strength. In addition, on June 10, 2021, the National Health Commission and other eight ministries and commissions jointly issued the work plan for the special rectification of illegal medical and beauty services, and decided to jointly carry out the special rectification of illegal medical and beauty services from June to December 2021. As the special rectification is coming to an end, it will help alleviate the pessimism of the capital market towards the medical and 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 retail trade (CITIC) index closed at 3990.85 points, down 1.40%, down 2.50% since the beginning of the year. The performance of the sector underperformed CSI 300 in one week.
Company announcement
[ Imeik Technology Development Co.Ltd(300896) : 2021 annual performance forecast]
[ Shanghai Jahwa United Co.Ltd(600315) : announcement of annual performance increase in 2021]
Risk tips
The epidemic situation is repeated, the consumer demand is lower than expected, and the industry competition is intensified.
