Group 1 - The cosmetics sector experienced a decline of 1.22% on September 12, with Shanghai Jahwa leading the drop [1][2] - The Shanghai Composite Index closed at 3883.69, up 0.22%, while the Shenzhen Component Index closed at 12996.38, up 0.13% [1] - Major stocks in the cosmetics sector showed mixed performance, with Marubi Biological and Water Sheep shares increasing by 1.15% and 0.45% respectively, while Shanghai Jahwa fell by 4.07% [1][2] Group 2 - The net outflow of main funds in the cosmetics sector was 211 million yuan, while retail investors saw a net inflow of 113 million yuan [2][3] - Specific stocks like Water Sheep and LaFang Home had varying net inflows and outflows, with Water Sheep seeing a net inflow of 14.77 million yuan from main funds [3] - Shanghai Jahwa and other companies like Beitaini and Furuida experienced significant net outflows from main funds, indicating potential investor concerns [3]

Group 1 - The cosmetics sector experienced a slight increase of 0.22% on September 10, with Jinsheng New Materials leading the gains [1] - The Shanghai Composite Index closed at 3812.22, up 0.13%, while the Shenzhen Component Index closed at 12557.68, up 0.38% [1] - Jinsheng New Materials saw a significant rise in its closing price to 14.38, reflecting an increase of 11.73% with a trading volume of 139,700 shares and a transaction value of 198 million yuan [1] Group 2 - The cosmetics sector faced a net outflow of 10.99 million yuan from institutional investors and 78.76 million yuan from retail investors, while individual investors saw a net inflow of 89.75 million yuan [2] - The trading data indicates that Jinsheng New Materials had a net inflow of 24.75 million yuan from institutional investors, despite a net outflow from retail and speculative investors [3] - Qingdao Kingway and Beitaini also reported net inflows from retail investors, while other companies like Shanghai Jahwa and Marubi experienced net outflows from both institutional and speculative investors [3]

Company Overview - Shanghai Jahwa United Co., Ltd. is located at 11F, Shuangshi Hui Building A, 399 Dongchangzhi Road, Hongkou District, Shanghai, established on December 1, 1995, and listed on March 15, 2001. The company specializes in the research, production, and sales of skincare, personal care, household cleaning, and maternal and infant products [1]. Financial Performance - As of June 30, 2025, Shanghai Jahwa achieved a revenue of 3.478 billion yuan, representing a year-on-year growth of 4.75%. The net profit attributable to shareholders was 266 million yuan, reflecting an increase of 11.66% year-on-year [2]. - The company has distributed a total of 3.569 billion yuan in dividends since its A-share listing, with 318 million yuan distributed over the past three years [3]. Stock Performance - On September 10, Shanghai Jahwa's stock price increased by 2.00%, reaching 28.04 yuan per share, with a trading volume of 152 million yuan and a turnover rate of 0.82%. The total market capitalization stood at 18.849 billion yuan [1]. - Year-to-date, the stock price has risen by 65.82%, with a 6.29% increase over the last five trading days, 28.39% over the last 20 days, and 31.52% over the last 60 days [1]. Shareholder Structure - As of June 30, 2025, the number of shareholders increased to 37,800, a rise of 10.15% from the previous period. The average circulating shares per person decreased by 9.22% to 17,804 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the second-largest shareholder with 32.7782 million shares, an increase of 15.0639 million shares from the previous period. New entrant招商产业精选股票A holds 3.4 million shares, while 富国研究精选灵活配置混合A has exited the top ten list [3]. Business Segmentation - The revenue composition of Shanghai Jahwa includes personal care products (45.70%), beauty products (21.48%), overseas sales (20.20%), innovation (12.55%), and other segments (0.06%) [1].

Summary of Conference Call for 嘉化公司 Company Overview - 嘉化公司 has undergone significant organizational restructuring since Q4 2023, establishing brand, e-commerce, and market management teams to enhance communication efficiency and integrate offline sales departments for 10 private brands [4][2]. Key Points and Arguments - **Channel Inventory Management**: The company has initiated a channel inventory cleanup, reducing 百草集百货's inventory turnover days to approximately 89 days, indicating a more comprehensive inventory status [5][2]. - **Brand Hierarchy Adjustment**: The brand hierarchy has been redefined, with 玉泽 and 六神 in the first tier, and 百草集 and 美加净 in the second tier. This restructuring aims to enhance brand positioning and product offerings [6][2]. - **Product Launches and Market Focus**: - 六神 is focusing on price control and has launched the 驱蚊弹 2.0, targeting over 100 million in sales in its launch year, with a significant increase in sales compared to the previous version [7][2]. - 玉泽 has returned to a growth trajectory with double-digit growth driven by brand repositioning, new product launches, and improved e-commerce capabilities [8][2]. - 佰草集 plans to promote new product lines, including 新七白, 修护线, and 抗老线, with expectations of strong online sales performance [11][2]. - **Market Strategy for 高夫**: The brand has shifted its target market from 30-40-year-old men to 18-24-year-old male college students, launching products like气泡水洁面巾 and achieving high conversion rates through live streaming [12][2]. Additional Important Insights - **Profitability and Growth Expectations**: The company anticipates that its skincare business will maintain rapid growth and improve profitability over the next two years, with 六神 contributing approximately 20 billion in revenue annually [15][3][16][3]. - **E-commerce and ROI**: 玉泽 and 佰草集 have shown slight improvements in profitability, with e-commerce channels becoming increasingly important for revenue generation [11][2]. - **Future Product Development**: The company is focusing on long-term brand investments and product development to enhance market share, with 玉泽's new products priced under 200 yuan to support growth [9][2][8][2]. - **Impact of Management Changes**: The management restructuring has led to improved performance, with the skincare business showing signs of stability and growth, particularly in Q2 2025 [15][3][16][3]. This summary encapsulates the key developments and strategic directions of 嘉化公司 as discussed in the conference call, highlighting the company's focus on brand management, inventory control, and market repositioning.

丨证券研究报告丨 分析师及联系人 [Table_Author] 李锦 罗祎 公司研究丨点评报告丨上海家化（600315.SH） [Table_Title] 上海家化2025 年中报点评：改革成果逐步落地， 下半年上新值得期待 报告要点 [Table_Summary] 自 2024 年下半年起，公司完成四大核心任务：定方向、明治理、提士气、清包袱，过去两次 大促逐步迎来局部产品和品牌成效兑现，下半年新品上新和品宣强化值得期待。 SAC：S0490514080004 SAC：S0490520080019 SFC：BUV258 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com 1 上海家化（600315.SH） cjzqdt11111 [Table_Title 上海家化 2025 2] 年中报点评：改革成果逐步落 地，下半年上新值得期待 [Table_Summary2] 事件描述 2025H1，公司实现营业收入 34.78 亿元，同比增长 5%，实现归母净利润 2.66 亿元，同比增 长 12%，实现扣非净利润 2.21 亿元，同比下滑 6%。 2025Q2，公司实现营业收 ...

Investment Rating - The report maintains a "Buy" rating for the cosmetics and medical beauty sector, highlighting strong growth potential and investment opportunities in the industry [14][19]. Core Insights - The cosmetics and medical beauty sector has shown resilience, outperforming the market during the week of August 29 to September 5, 2025, with the Shenwan Beauty Care Index declining only 0.8% [3][4]. - The transition to autumn skincare marks the beginning of a consumption peak for the sector, with significant sales events such as the Autumn Beauty Consumption Festival and Double 11 approaching, creating new investment opportunities [9][10]. - Major companies in the sector are optimistic about their performance in the second half of 2025, as indicated by a recent conference involving over ten beauty care companies [9]. Summary by Sections Industry Performance - The Shenwan Cosmetics Index remained stable, outperforming the Shenwan A Index by 1.4 percentage points, while the Shenwan Personal Care Index fell by 1.8%, underperforming the Shenwan A Index by 0.3 percentage points [3][4]. Key Company Reviews - **Mao Geping (1318HK)**: Reported a revenue of 2.59 billion yuan for H1 2025, a year-on-year increase of 31%, with a net profit of 670 million yuan, up 36%. The color cosmetics segment saw a revenue of 1.42 billion yuan, while skincare generated 1.09 billion yuan, reflecting strong brand momentum [10][11]. - **Shangmei Co. (02145HK)**: Achieved a revenue of 4.108 billion yuan in H1 2025, a 17.3% increase, with a net profit of 556 million yuan, up 34.7%. The main brand, Han Shu, contributed significantly to growth, with a revenue of 3.344 billion yuan [16][17]. Investment Recommendations - Recommended companies include Shangmei Co., Porlaia, and Shanghai Jahwa, which have strong brand matrices and relatively low PE multiples. Other notable mentions are Marubi Biological and Mao Geping, which are positioned well to benefit from the rise of domestic beauty brands [10][19]. - The report suggests focusing on companies with strong R&D capabilities and product pipelines, particularly in the upstream medical beauty segment, with a recommendation for Aimeike [10][19]. Market Trends - The report notes a significant increase in online sales, with H1 2025 online revenue for Mao Geping reaching 1.297 billion yuan, a 39% year-on-year increase, marking a shift in consumer purchasing behavior towards online platforms [12][18]. - The overall cosmetics retail market showed a 4.5% growth in July 2025, indicating a robust recovery in consumer spending [23][26]. Strategic Developments - Porlaia's investment in Huazhi Xiao reflects a strategic move to enhance its multi-brand strategy and capitalize on the influence of Gen Z consumers [28]. - The report highlights the competitive landscape, noting that domestic brands are increasingly capturing market share, with a notable shift in consumer perception from "value for money" to "quality choice" [32].

Core Viewpoint - The article discusses the recent developments in the domestic beauty market, highlighting the completion of a Series B funding round for HuazhiXiao, led by domestic beauty giant Proya, and the strategic shifts among the top ten domestic beauty companies as they seek new growth avenues amid a slowing market [3][4]. Group 1: Financial Performance of Top Domestic Beauty Companies - Proya, Shangmei, and Shanghai Jahwa ranked as the top three domestic beauty companies, with Proya achieving a revenue of 5.362 billion yuan in the first half of the year, surpassing half of last year's total revenue [5][6]. - Shangmei's revenue grew by 17.3% year-on-year to 4.108 billion yuan, with net profit increasing by 34.7% [5][6]. - The top ten domestic beauty companies saw eight achieve revenue growth, and seven companies reported positive net profit growth, indicating a robust overall performance [6][8]. Group 2: Strategic Shifts and Market Positioning - The top domestic beauty companies are rapidly building multi-brand matrices and advancing overseas strategies to adapt to the slowing domestic market [3][4]. - Proya's skincare segment remains dominant, while its hair care and color cosmetics categories have shown significant growth, with hair care growing by 131.25% and color cosmetics by 25.79% [11]. - Shangmei's main brand, Han Shu, generated 3.344 billion yuan in revenue, while its new brand, newpage, focusing on children's skincare, achieved a remarkable 146.5% growth [14][16]. Group 3: International Expansion and Investment Strategies - Proya aims to enter the top ten global cosmetics companies by 2035, targeting a revenue of at least 50 billion yuan, and is actively pursuing international market opportunities [22][23]. - The investment in HuazhiXiao is a strategic move for Proya to enhance its multi-brand strategy and recognize HuazhiXiao's global potential [23]. - Water Sheep Co. is also focusing on international expansion, with a goal to become a global luxury beauty brand management group, launching a "10+3" global strategy [26][28]. Group 4: Challenges and Future Outlook - The domestic beauty market is facing challenges such as slowing growth and increased competition, prompting companies to seek international opportunities to escape price wars [29]. - Companies that possess product originality, brand narrative capabilities, and cross-market operational efficiency are more likely to transition from "Chinese leaders" to "global players" [29].

Market Overview - The cosmetics sector experienced a decline of 1.93% on September 3, with Jiaheng Jiahua leading the drop [1] - The Shanghai Composite Index closed at 3813.56, down 1.16%, while the Shenzhen Component Index closed at 12472.0, down 0.65% [1] Individual Stock Performance - Bawei Co. (837023) saw an increase of 2.86%, closing at 20.17 with a trading volume of 70,000 shares and a turnover of 139 million yuan [1] - Lafang Jiahua (603630) increased by 2.46%, closing at 28.35 with a trading volume of 171,800 shares and a turnover of 496 million yuan [1] - Jiaheng Jiahua (300955) experienced the largest decline of 8.73%, closing at 32.09 with a trading volume of 141,300 shares and a turnover of 475 million yuan [2] - Other notable declines include Huaye Fragrance (300886) down 6.05% and Jincheng New Materials (300849) down 3.78% [2] Capital Flow Analysis - The cosmetics sector saw a net outflow of 176 million yuan from institutional investors, while retail investors contributed a net inflow of 95.35 million yuan [2] - The main capital inflow and outflow for individual stocks showed that Lafang Jiahua had a net inflow of 28.51 million yuan from institutional investors, while Jiaheng Jiahua had a net outflow of 7.93 million yuan [3] - The overall trend indicates a mixed sentiment among retail and institutional investors, with retail investors showing some interest despite the overall sector decline [2][3]

Overview - The increasing national income level has led to a heightened focus on personal hygiene and skin health among consumers, resulting in a growing demand for functional and personalized bathing products. Traditional products with a single function of "cleansing + moisturizing" are becoming less favored, while diverse needs such as "fragrance experience," "skin repair," and "emotional therapy" are becoming mainstream [1][14] - The Chinese shower gel market is undergoing structural differentiation, with emotional fragrance shower gels meeting consumers' self-expression and emotional regulation needs, while efficacy-based products target specific skin issues like oil control, whitening, and sensitive skin care. Both types are major drivers of market growth [1][14] - In 2024, the total sales of shower gels in China are projected to reach 13.052 billion yuan, a year-on-year decrease of 1.62%. Despite the decline, the drop is less than the overall market, indicating a trend towards rational and fundamental consumption in the shower gel market [1][14] Market Policies - The Chinese government places significant emphasis on the development of the cosmetics industry, including shower gels, and has issued a series of policies aimed at improving production quality, safety, and regulatory compliance. These policies create a favorable environment for the development of the shower gel industry [8] Industry Chain - The shower gel industry consists of an upstream supply chain that includes raw material suppliers (surfactants, soap bases, moisturizers, fragrances, thickeners) and packaging material suppliers. The midstream comprises manufacturing enterprises, while the downstream includes various sales channels such as supermarkets, specialty stores, and e-commerce platforms [10] Consumer Insights - Female consumers dominate the shower gel market in China, accounting for over 60% of consumption. They are often the primary decision-makers in household purchases. Over 90% of consumers prioritize product efficacy, with key considerations including moisturizing, whitening, and antibacterial properties, followed by ingredient safety and natural formulations [12][13] Competitive Landscape - The Chinese shower gel market is highly competitive, featuring numerous participants, including international brands like Dove and Lux, as well as domestic brands like Six God and Lafang. The top 10 brands account for over 50% of the market share, with Six God holding the largest share [14][15] - Shanghai Jahwa, a long-established player in the personal care industry, reported a total revenue of 5.679 billion yuan in 2024, with a gross profit of 3.271 billion yuan and a gross margin of 57.60% [15] - Lafang, established in 2001, achieved a total revenue of 889 million yuan in 2024, with its personal care segment contributing 778 million yuan, representing 87.57% of total revenue [16] Future Trends - The demand for functional shower gels is expected to rise, with products targeting specific skin issues gaining popularity. There will be a trend towards multifunctional products that combine cleansing, moisturizing, fragrance, and mild sun protection. Additionally, as consumers become more health and environmentally conscious, there will be a preference for natural, organic, and additive-free shower gels containing plant extracts and essential oils [17]

Core Insights - The baby and child care market is specifically designed for children aged 0-12 years, focusing on cleaning, skincare, and care products [2][4] - The Asia-Pacific region is the largest market globally, accounting for 41% of the market share, driven by population advantages and rapid economic development [5][6] - China's baby and child care market is rapidly growing, with the market size expected to increase from 27.42 billion yuan in 2021 to 32.9 billion yuan in 2024 [5][6] Industry Definition and Classification - Baby and child care products include categories such as shampoo, bath products, skincare, oral care, sunscreen, and mosquito repellent, designed with a focus on the physiological characteristics of infants [2][4] - Products are classified by function (cleaning, skincare, oral care, etc.), dosage form (liquid, cream, foam, solid), age group (newborns, toddlers, children), and market positioning (mass, mid-high end, premium) [4][6] Current Market Status - The global baby and child care market is experiencing steady growth, projected to rise from 13.06 billion USD in 2021 to 14.48 billion USD in 2024, with expectations to surpass 15 billion USD by 2025 [6][8] - In China, the market is expected to reach 35.86 billion yuan by 2025, with body care products holding a significant share [5][6] Industry Chain - The upstream of the industry includes raw materials like oils, emulsifiers, surfactants, and packaging materials, while the midstream focuses on product development, production, and brand operation [6][8] - The downstream sales channels include mother-baby stores, supermarkets, pharmacies, e-commerce, and medical institutions, primarily targeting millennial parents [6][8] Development History - The baby and child care industry in China has evolved through several stages, including the introduction of international concepts in the 1990s and the rise of domestic brands [8][9] Competitive Landscape - The Chinese market features a mix of international and domestic brands, with local brands gaining market share in recent years [9][10] - In 2024, international brands are expected to account for 40% of the market, while domestic brands will hold 60% [9][10] Industry Trends - The industry is expanding due to factors such as consumer upgrades, the popularization of scientific parenting concepts, and stricter regulatory policies [10] - The market is moving towards age-specific care and sustainable practices, with an increasing share for domestic brands [10]