Core Insights - The cosmetics sector experienced a decline of 0.72% on October 22, with LaFang JiaHua leading the drop [1] - The Shanghai Composite Index closed at 3913.76, down 0.07%, while the Shenzhen Component Index closed at 12996.61, down 0.62% [1] Market Performance - Qingdao Jinwang (002094) saw a closing price of 7.88, with an increase of 2.74% and a trading volume of 561,300 shares, amounting to 450 million yuan [1] - Other notable performers included Kesheng Co. (300856) with a closing price of 13.88, up 1.46%, and Yusong Co. (300132) at 6.52, up 1.40% [1] - LaFang JiaHua (603630) closed at 22.55, down 1.83%, with a trading volume of 39,800 shares and a turnover of 90.79 million yuan [2] Capital Flow - The cosmetics sector experienced a net outflow of 12.29 million yuan from institutional investors and 12.90 million yuan from retail investors, while there was a net inflow of 25.19 million yuan from individual investors [2] - The capital flow for individual stocks showed that Qingdao Jinwang had a net inflow of 30.74 million yuan from institutional investors, while LaFang JiaHua had a net outflow of 7.07 million yuan [3] - Other stocks like Kesheng Co. and Yusong Co. also experienced varying degrees of net inflow and outflow from different investor categories [3]

Core Insights - The cosmetics sector experienced a slight decline of 0.03% on October 21, with Lafang Jiahua leading the drop [1] - The Shanghai Composite Index closed at 3916.33, up 1.36%, while the Shenzhen Component Index closed at 13077.32, up 2.06% [1] Group 1: Stock Performance - Jinsheng New Material (300849) saw a significant increase of 7.74%, closing at 14.76 with a trading volume of 103,000 shares and a turnover of 148 million yuan [1] - Jiaheng Jiahua (300955) rose by 4.90%, closing at 30.62 with a trading volume of 45,700 shares and a turnover of 137 million yuan [1] - Qing Song Co. (300132) increased by 3.71%, closing at 6.43 with a trading volume of 266,600 shares and a turnover of 170 million yuan [1] - Lafang Jiahua (603630) declined by 2.67%, closing at 22.97 with a trading volume of 61,500 shares and a turnover of 141 million yuan [2] - Shanghai Jahwa (600315) fell by 1.85%, closing at 27.09 with a trading volume of 96,400 shares and a turnover of 262 million yuan [2] Group 2: Capital Flow - The cosmetics sector experienced a net outflow of 11.49 million yuan from institutional investors, while retail investors saw a net inflow of 19.36 million yuan [2] - The main capital inflow was observed in brands like Banlaya (603605) with a net inflow of 10.38 million yuan, while Jinsheng New Material (300849) had a net outflow of 11.78 million yuan [3] - Retail investors showed a significant net inflow in Furuida (600223) with 7.23 million yuan, while the outflow from institutional investors was 3.19 million yuan [3]

Core Points - Shanghai Jahwa's stock price decreased by 2.03% on October 21, trading at 27.04 CNY per share with a market capitalization of 18.177 billion CNY [1] - Year-to-date, Shanghai Jahwa's stock has increased by 59.91%, with a recent 5-day increase of 1.69% and a 20-day decrease of 1.99% [2] - The company reported a revenue of 3.478 billion CNY for the first half of 2025, representing a year-on-year growth of 4.75%, and a net profit of 266 million CNY, up 11.66% year-on-year [2] Financial Performance - As of June 30, 2025, Shanghai Jahwa's total shareholder count was 37,800, an increase of 10.15% from the previous period [2] - The company has distributed a total of 3.595 billion CNY in dividends since its A-share listing, with 344 million CNY distributed over the last three years [3] Shareholding Structure - As of June 30, 2025, Hong Kong Central Clearing Limited is the second-largest circulating shareholder, holding 32.7782 million shares, an increase of 15.0639 million shares from the previous period [3] - New shareholder,招商产业精选股票A, holds 3.4 million shares, ranking as the ninth-largest circulating shareholder [3]

Core Viewpoint - Shanghai Jahwa (600315) is actively promoting its home cleaning products, indicating a strategic focus on expanding its market presence in this category [1] Group 1 - The company is engaging in orderly marketing and promotion of its home cleaning products [1]

Market Overview - The Shanghai Composite Index rose by 0.63% on October 20, with 26 out of 28 sectors experiencing gains, led by the communication and coal industries, which increased by 3.21% and 3.04% respectively [1] - The market saw a net outflow of 4.601 billion yuan in major funds, with 12 sectors recording net inflows, primarily in the communication sector, which attracted 4.397 billion yuan [1] Sector Performance - The communication sector had the highest net inflow of funds, contributing to its 3.21% increase, while the coal sector followed with a net inflow of 1.148 billion yuan [1] - Conversely, the non-ferrous metals sector experienced the largest net outflow, totaling 4.699 billion yuan, followed by the computer sector with a net outflow of 2.390 billion yuan [1] Beauty and Personal Care Industry - The beauty and personal care sector declined by 0.38%, with a net outflow of 24.996 million yuan [2] - Among the 29 stocks in this sector, 15 saw gains while 12 experienced declines [2] - The top net inflow stock was Shanghai Jahwa, with an inflow of 22.996 million yuan, followed by Liangmianzhen and Jiaheng Jiahua with inflows of 12.992 million yuan and 6.235 million yuan respectively [2] Individual Stock Performance - The stocks with the highest net outflows included Proya, Aimeike, and Huaxi Biology, with outflows of 26.186 million yuan, 23.826 million yuan, and 9.397 million yuan respectively [2] - A detailed table of stock performance indicates various changes in price and turnover rates, highlighting the dynamics within the beauty and personal care sector [3]

Investment Rating - The report does not explicitly state an investment rating for the industry, but it suggests focusing on the duty-free retail sector and the ice and snow economy as potential investment opportunities. Core Insights - The recent adjustments to the Hainan duty-free shopping policy are expected to enhance the attractiveness of Hainan as a free trade port, expanding the range of duty-free goods and increasing consumer participation [2][3]. - The early onset of the snow season in Xinjiang is anticipated to benefit the ice and snow economy, with government initiatives aiming for a total output value of 200 billion yuan by 2030 [2][3]. - The report highlights the performance of various sectors within the consumer industry, noting significant stock price changes among leading companies [2][3]. Summary by Sections Market Weekly Review - The consumer sector showed mixed performance, with food and beverage, retail, and home appliances experiencing gains, while beauty care and textiles saw declines [2][3]. - Notable stock performances included Kuaijishan (+11.08%) and Dongbei Group (+8.97%) leading the gains, while Jinzi Ham (-17.80%) and Biyi Co. (-19.63%) faced significant losses [2][3]. Industry News and Key Company Announcements - The Hainan duty-free policy adjustments include expanding the range of duty-free goods to 47 categories and allowing more consumer participation [2][3]. - The ice and snow industry is projected to exceed 1 trillion yuan by 2025, driven by upcoming major events and government support [2][3]. - Various companies reported significant revenue growth, such as Spring Breeze Power with a 28.56% increase in Q3 revenue [2][3].

Core Viewpoint - The market experienced a correction last week, but certain stocks within the brand index showed resilience, indicating potential investment opportunities in sectors like electronics, new energy, new consumption, and real estate as uncertainties ease [1][4]. Market Performance - The market indices saw declines: Shanghai Composite Index down 1.47%, Shenzhen Component down 4.99%, ChiNext down 5.71%, and CSI 300 down 2.22%. The brand index fell 3.58% to 1956.62 points [2]. - Notable gainers in the brand index included Shanghai Jahwa up 9.42%, Changbai Mountain up 7.19%, and Darentang up 5.34%. Other stocks like Luzhou Laojiao and Yiling Pharmaceutical also saw gains exceeding 4% [2]. Stock Performance Since H2 - Since the beginning of the second half of the year, Zhongji Xuchuang has surged 156.40%, leading the gains, followed by Sunshine Power at 114.27%. Other significant performers include Lanke Technology and Yiwei Lithium Energy, both up over 60% [3]. Market Outlook - Looking ahead, the market is expected to maintain upward momentum as uncertainties gradually diminish. Liquidity is anticipated to remain supportive, with domestic interest rates low and overseas liquidity remaining loose, encouraging investment in Chinese equity assets [4][5]. - The current market environment is characterized by a shift in investment styles, with a focus on sectors that offer higher investment certainty, particularly in electronics, new energy, new consumption, and real estate [5].

Group 1 - The core index of the Xinhua National Brand Project reported 1956.62 points, with several constituent stocks rising against the market trend [1] - Shanghai Jahwa increased by 9.42%, leading the gains among constituent stocks, followed by Changbaishan at 7.19% and Darentang at 5.34% [1] - The overall market saw declines, with the Shanghai Composite Index down 1.47% and the Shenzhen Component Index down 4.99% [1] Group 2 - Since the second half of the year, Zhongji Xuchuang has risen by 156.40%, ranking first in gains, followed by Sunshine Power at 114.27% [2] - The market is expected to maintain upward momentum, with liquidity driving potential growth and fundamental support gradually increasing [2] - Domestic interest rates remain low, and overseas liquidity is expected to remain loose, indicating continued capital allocation towards Chinese equity assets [2] Group 3 - Recent market adjustments are attributed to a decline in global market risk appetite and a shift in investment style towards defensive sectors [3] - The current market environment is characterized by high levels, increased uncertainty, and a slowdown in previous catalysts, leading to cautious trading [3] - Investors are encouraged to seek opportunities in sectors with higher investment certainty, particularly in electronics, new energy, new consumption, and real estate [3]

Investment Rating - The report maintains a positive outlook on the cosmetics and medical beauty sector, highlighting strong performance relative to the market [5][6]. Core Insights - The Tmall Double 11 event showcased strong sales for domestic brands, with significant demand for products from brands like Maogeping and Winona, indicating a robust market response [9][10]. - The cosmetics and medical beauty sector is expected to see continued growth, with Q3 performance meeting expectations and Q4 anticipated to benefit from promotional activities [10][11]. - The report emphasizes the importance of online channels, particularly Tmall and Douyin, in driving sales for domestic brands, which are gaining market share against international competitors [24][26]. Summary by Sections Industry Performance - The cosmetics and medical beauty sector outperformed the market from October 10 to October 17, 2025, with the Shenwan Beauty Care Index declining by 2.5%, which is better than the overall market performance [5][6]. - Key stocks in the sector included Jiaheng Jiahu (+35.0%), Yiyi Co. (+18.6%), and Yanjing Co. (+15.6%), while Maogeping (-7.2%) and Shangmei Co. (-5.4%) lagged [6]. Sales and Market Trends - The report notes that the overall retail sales of cosmetics in China reached 291.5 billion yuan in the first eight months of 2025, with a year-on-year growth of 3.3% [10][16]. - The Tmall Double 11 event attracted over 10 million viewers, with domestic brands experiencing sell-out conditions, indicating strong consumer interest and demand [9][10]. Company Highlights - Han Shu, a brand under Shangmei Co., has shown significant improvement in Tmall channel performance, collaborating with popular influencers to enhance sales [9][10]. - The report highlights the strategic partnership of Han Shu with global ambassador Wang Jiaer, aiming to elevate the brand's international presence and market perception [20][21]. Investment Recommendations - The report recommends focusing on brands with strong online sales growth, such as Maogeping, Shangmei Co., and Shanghai Jahwa, while also monitoring companies like Proya and Marubi for potential performance improvements [12][13]. - In the medical beauty segment, the report suggests investing in companies with strong R&D capabilities and product pipelines, recommending Aimeike as a key player [12][13].

Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry [2]. Core Views - The cosmetics and medical beauty sector has shown stronger performance than the market, with the Shenwan Beauty Care Index declining by 2.5% from October 10 to October 17, 2025, which is better than the overall market performance [4][5]. - The Tmall Double 11 event has seen significant success for domestic brands, with brands like Maogeping experiencing high demand and sold-out products [10]. - The overall performance for Q3 2025 is expected to meet expectations, with a continued upward trend into Q4, driven by promotional events [11][12]. Summary by Sections Industry Performance - The cosmetics and medical beauty sector outperformed the market during the specified period, with the Shenwan Cosmetics Index down by 1.1%, which is 2.3 percentage points better than the Shenwan A Index [4][5]. - Key stocks in the sector included Jiaheng Jiahua (+35.0%), Yiyi Co. (+18.6%), and Yanjing Co. (+15.6%) [6]. Market Trends - The Tmall Double 11 event on October 15 attracted over 10 million viewers, with domestic brands like Maogeping experiencing supply shortages due to high demand [10]. - The overall sales performance is expected to improve in the coming weeks, particularly with the upcoming Douyin Double 11 event [10]. Q3 Performance Outlook - The demand for cosmetics remains robust, with retail sales growth in July and August outpacing the overall market [11]. - The total retail sales of cosmetics for the first eight months of 2025 reached 291.5 billion yuan, a year-on-year increase of 3.3% [11]. - Domestic brands are leveraging online channels effectively, with Han Shu achieving over 2 billion yuan in GMV in Q3 [12]. Company Highlights - Han Shu announced a global partnership with Wang Jiaer, enhancing its international presence and brand recognition [19][22]. - The report recommends focusing on companies with strong channel and brand matrices, such as Maogeping, Shanghai Jahwa, and Up Beauty [14]. E-commerce Data - The report highlights significant growth in e-commerce sales for various brands, with Han Shu achieving a 37% increase in GMV [15]. - The overall e-commerce landscape for domestic brands is expected to continue thriving, supported by promotional events and strategic partnerships [15][18]. Market Dynamics - The report notes that the Chinese skincare market is projected to reach 271.2 billion yuan in 2024, despite a slight decline in growth [26]. - Domestic brands are increasingly capturing market share, with a notable presence in the top ten rankings [26][27]. Investment Recommendations - The report suggests investing in companies with strong growth potential and robust product pipelines, particularly in the cosmetics and medical beauty sectors [14]. - Specific recommendations include Maogeping, Up Beauty, and Shanghai Jahwa for cosmetics, and Aimeike for medical beauty [14].