Market Overview - The personal care products sector experienced a decline of 1.01% on October 13, with Yanjiang Co. leading the drop [1] - The Shanghai Composite Index closed at 3889.5, down 0.19%, while the Shenzhen Component Index closed at 13231.47, down 0.93% [1] Stock Performance - Notable gainers in the personal care sector included: - Beijiajie (603059) with a closing price of 36.07, up 2.53% [1] - Dengkang Oral (001328) at 38.76, up 1.84% [1] - Yiyi Co. (001206) at 34.85, up 1.54% [1] - Major decliners included: - Yanjiang Co. (300658) at 9.16, down 3.68% [2] - Runben Co. (603193) at 27.25, down 2.71% [2] - Baia Co. (003006) at 24.68, down 2.64% [2] Capital Flow Analysis - The personal care products sector saw a net outflow of 30.35 million yuan from institutional investors, while retail investors had a net inflow of 54.37 million yuan [2][3] - The detailed capital flow for selected stocks showed: - Zhongshun Jiesang (002511) had a net inflow of 11.76 million yuan from institutional investors [3] - Mengyue Nursing (605009) saw a net inflow of 8.81 million yuan from institutional investors [3] - Baia Co. (003006) had a net outflow of 7.67 million yuan from institutional investors [3]

Investment Rating - The report gives a "Buy" rating for the cosmetics and medical beauty industry, particularly highlighting the potential of specific companies like Water Sheep Co., Ltd. [13] Core Insights - The cosmetics and medical beauty sector has underperformed the market recently, with the Shenwan Beauty Care Index rising by 1.3% from September 29 to October 10, 2025, which is lower than the overall market performance [3][4] - The upcoming Tmall Double 11 event is expected to boost sales, with domestic brands actively participating with competitive discounts [8] - Water Sheep Co., Ltd. is identified as a leading technology-driven beauty company, with stable revenue projections and improving profit margins [9][10] Summary by Sections Industry Performance - The cosmetics and medical beauty sector has shown weaker performance compared to the market, with the Shenwan Cosmetics Index increasing by 1.2%, lagging behind the Shenwan A Index by 0.4 percentage points [3][4] - The top-performing stocks in the sector include Jiaheng Home Care (+35.0%), Yiyi Co., Ltd. (+18.6%), and Yanjing Co., Ltd. (+15.6%) [5] Upcoming Events - Tmall's Double 11 sales event is set to begin on October 15, 2025, with major domestic brands like Proya and Maogeping expected to participate actively [8] Company Focus: Water Sheep Co., Ltd. - Water Sheep Co., Ltd. has a dual business model of proprietary and CP agency brands, with projected revenues stabilizing between 4 to 5 billion yuan from 2021 to 2024 [9] - The company is expected to achieve net profits of 258 million, 331 million, and 398 million yuan for the years 2025, 2026, and 2027, respectively, reflecting significant growth [10][13] Market Trends - The overall retail sales of cosmetics in August 2025 grew by 5.1%, indicating a recovery in consumer demand [17] - The domestic market is seeing a shift in market share, with local brands gaining ground against international competitors [25] E-commerce Insights - Data shows that domestic brands are performing well on platforms like Douyin and Tmall, with significant growth in GMV for brands like Proya and Maogeping [14][15] Company Developments - Proya has filed for an IPO in Hong Kong, with stable revenue growth and a strong online presence [19] - The report highlights the strategic moves of various companies, including partnerships and new product launches, to enhance their market positions [24][23]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The consumption during the National Day holiday showed steady recovery, with significant increases in travel and retail sales, indicating a positive trend for the retail sector [23][25] - The report emphasizes the importance of emotional consumption themes and highlights high-quality companies in high-growth sectors, particularly in gold jewelry, offline retail, cosmetics, and medical aesthetics [6][33] Summary by Sections Retail Market Review - The retail industry index closed at 2288.03 points, with a weekly increase of 0.28%, underperforming the Shanghai Composite Index which rose by 1.80% [5][12] - The professional chain sector saw the largest increase this week, while the watch and jewelry sector led the year-to-date performance with an increase of 28.18% [14][17] Retail Insights - During the National Day holiday, domestic travel reached 888 million trips, with total spending of 809 billion yuan, marking an increase of 1.23 billion trips and 108.19 billion yuan compared to the previous year [23][24] - Key retail and catering enterprises reported a 2.7% year-on-year increase in sales during the holiday, with daily sales in related industries growing by 4.5% [23][25] Investment Recommendations - Focus on high-quality gold jewelry brands with differentiated product offerings, recommending companies like Laopuhuang and Chaohongji [6][33] - Emphasize offline retail companies that adapt to trends, recommending Yonghui Supermarket and Aiyingshi [6][33] - Highlight domestic cosmetics brands with strong differentiation, recommending brands like Maogeping and Porcelain [6][34] - Suggest medical aesthetics companies with differentiated product lines, recommending Aimeike and Kedi-B [6][34] Company Performance Highlights - Laopuhuang reported a revenue of 12.354 billion yuan in H1 2025, a year-on-year increase of 250.9%, with a net profit of 2.268 billion yuan, up 285.8% [38][39] - Chaohongji achieved a revenue of 4.102 billion yuan in H1 2025, reflecting a 19.5% increase, with a net profit of 331 million yuan, up 44.3% [35] - Maogeping's revenue reached 1.769 billion yuan in H1 2025, a 30.8% increase, with a net profit of 186 million yuan, up 5.2% [35]

Core Insights - The personal care products sector experienced a 0.58% increase on October 9, with Beijia leading the gains [1] - The Shanghai Composite Index closed at 3933.97, up 1.32%, while the Shenzhen Component Index closed at 13725.56, up 1.47% [1] Stock Performance Summary - Beijia (603059) closed at 34.19, up 2.80% with a trading volume of 26,600 and a transaction value of 90.90 million [1] - Yiyi Co. (001206) closed at 31.20, up 2.70% with a trading volume of 49,000 and a transaction value of 150 million [1] - Yanjing Co. (300658) closed at 9.32, up 2.42% with a trading volume of 241,600 and a transaction value of 229 million [1] - Reliable Co. (301009) closed at 13.63, up 2.10% with a trading volume of 31,700 and a transaction value of 42.76 million [1] - Stable Medical (300888) closed at 38.81, up 1.33% with a trading volume of 45,700 and a transaction value of 176 million [1] - Other notable stocks include Liangmian Needle (600249) at 5.91, up 0.85%, and Runben Co. (603193) at 28.03, up 0.07% [1] Capital Flow Analysis - The personal care products sector saw a net inflow of 22.62 million from institutional investors, while retail investors experienced a net outflow of 19.11 million [2] - Major stocks with significant net inflows include Stable Medical (300888) with 10.81 million and Dengkang Oral (001328) with 8.52 million [3] - Conversely, stocks like Beijia (603059) and Liangmian Needle (600249) experienced net outflows of 4.81 million and 0.25 million respectively [3]

Market Overview - The personal care products sector experienced a decline of 0.2% on September 29, with Runben Co., Ltd. leading the drop [1] - The Shanghai Composite Index closed at 3862.53, up 0.9%, while the Shenzhen Component Index closed at 13479.43, up 2.05% [1] Stock Performance - Notable gainers in the personal care sector included: - Yiyi Co., Ltd. (Code: 001206) with a closing price of 30.49, up 5.39% and a trading volume of 56,600 shares, totaling 171 million yuan [1] - Yanjing Co., Ltd. (Code: 300658) with a closing price of 8.54, up 4.15% and a trading volume of 184,700 shares, totaling 157 million yuan [1] - Decliners included: - Runben Co., Ltd. (Code: 603193) with a closing price of 28.53, down 2.89% and a trading volume of 50,000 shares, totaling 143 million yuan [2] - XD Beijia Clean (Code: 603059) with a closing price of 33.15, down 2.87% and a trading volume of 24,300 shares, totaling 80.98 million yuan [2] Capital Flow - The personal care products sector saw a net outflow of 51.19 million yuan from institutional investors, while retail investors contributed a net inflow of 47.40 million yuan [2][3] - Key capital flows for selected stocks included: - Yanjing Co., Ltd. had a net inflow of 9.19 million yuan from institutional investors, but a net outflow of 16.15 million yuan from retail investors [3] - Runben Co., Ltd. experienced a net outflow of 9.49 million yuan from institutional investors [3]

Market Overview - The personal care products sector experienced a decline of 0.45% on September 26, with Beijiajie leading the drop [1] - The Shanghai Composite Index closed at 3828.11, down 0.65%, while the Shenzhen Component Index closed at 13209.0, down 1.76% [1] Stock Performance - Key stocks in the personal care sector showed varied performance, with Jeya Co. rising by 2.20% to a closing price of 31.18, while Beijiajie fell by 3.31% to 34.21 [1][2] - Other notable performances include: - Dengkang Oral at 39.28, up 1.42% - Yanjing Co. at 8.23, up 0.61% - Stable Medical at 37.65, down 0.50% [1][2] Capital Flow - The personal care products sector saw a net outflow of 14.44 million yuan from institutional investors and 12.17 million yuan from retail investors, while individual investors contributed a net inflow of 26.61 million yuan [2] - Detailed capital flow for specific stocks indicates: - Yanjing Co. had a net outflow of 6.26 million yuan from institutional investors [3] - Reliable Co. saw a net inflow of 6.14 million yuan from institutional investors [3] - Dengkang Oral experienced a net inflow of 5.26 million yuan from institutional investors [3]

Market Overview - The personal care products sector experienced a decline of 0.77% on September 24, with Baiya Co., Ltd. leading the drop [1] - The Shanghai Composite Index closed at 3853.64, up 0.83%, while the Shenzhen Component Index closed at 13356.14, up 1.8% [1] Stock Performance - Notable gainers in the personal care sector included: - Yiyi Co., Ltd. (依依股份) with a closing price of 29.81, up 6.12% [1] - Zhongshun Jiesang (中顺洁桑) at 8.29, up 2.09% [1] - Liangmian Needle (两面针) at 5.99, up 1.70% [1] - Conversely, Baiya Co., Ltd. (百亚股份) saw a decline of 2.61%, closing at 26.90 [2] Trading Volume and Capital Flow - The personal care products sector had a net outflow of 15.49 million yuan from institutional investors and 16.54 million yuan from retail investors, while there was a net inflow of 32.04 million yuan from individual investors [2] - The trading volume for Yiyi Co., Ltd. reached 73,000 hands with a transaction value of 214 million yuan [1] Capital Flow Analysis - Key capital flow insights include: - Yiyi Co., Ltd. had a net inflow of 6.27 million yuan from institutional investors, while retail investors saw a net outflow of 9.08 million yuan [3] - Reliable Co., Ltd. (可靠股份) experienced a net inflow of 6.14 million yuan from institutional investors but a net outflow of 4.62 million yuan from retail investors [3] - Zhongshun Jiesang faced a significant net outflow of 7.42 million yuan from institutional investors, while individual investors contributed a net inflow of 18.98 million yuan [3]

Core Insights - Runben Co., Ltd. experienced a stock price increase of 2.84% on September 23, with a trading volume of 199 million yuan [1] - The company reported a financing net purchase of 19.41 million yuan on the same day, indicating strong investor interest [1][2] - As of June 30, 2025, Runben's revenue reached 895 million yuan, reflecting a year-on-year growth of 20.31% [2] Financing and Margin Trading - On September 23, Runben's financing buy amounted to 40.59 million yuan, with a total financing balance of 333 million yuan, representing 10.97% of its market capitalization [1] - The financing balance is above the 90th percentile of the past year, indicating a high level of leverage [1] - The company also reported a margin trading situation with a short selling amount of 2.94 million yuan and a remaining short selling balance of 249,500 yuan [1] Shareholder and Institutional Holdings - As of June 30, 2025, the number of shareholders increased by 60.52% to 16,600, while the average number of circulating shares per person decreased by 37.70% to 6,211 shares [2] - Runben has distributed a total of 316 million yuan in dividends since its A-share listing [3] - New institutional shareholders include Hong Kong Central Clearing Limited and Guotai Consumer Preferred Stock, among others, indicating growing institutional interest [3]

Investment Rating - The report maintains a "Positive" outlook on the beauty and personal care industry, highlighting the resilience of domestic brands and the impact of new consumption trends [2]. Core Insights - The beauty and personal care sector experienced a robust recovery in H1 2025, with a retail sales growth of 2.9%, reversing the previous decline due to favorable consumption policies and improved income expectations [5][6]. - Domestic brands are gaining market share, with top local brands now competing closely with international counterparts, indicating a significant shift in consumer preferences [10][11]. - The report categorizes companies into three groups based on performance: those with strong brand matrices benefiting from multi-brand strategies, those capitalizing on consumer trends like domestic brands and collagen products, and those showing signs of strategic improvement [20][23]. Summary by Sections Industry Overview - The beauty market is projected to grow steadily, with a forecasted retail sales decline of 1.1% in 2024, followed by a recovery in H2 2025 [5][6]. - The domestic market share is expected to increase, with local brands achieving significant breakthroughs in both skincare and makeup segments [10][11]. Company Performance - **Cosmetics Sector**: - Major companies like Up Beauty and Proya reported revenue growth of 17.3% and 7.2% respectively in H1 2025, with net profits increasing by 30.6% and 13.8% [20][21]. - Other notable performers include Marubi and Water Sheep, with revenue growth of 30.8% and 9.0% respectively [21][22]. - **Personal Care Sector**: - Companies like Ruibin and Zhenjia showed remarkable growth, with Ruibin's revenue increasing by 67.6% and Zhenjia's by 157.11% in H1 2025 [5][20]. - **Medical Aesthetics Sector**: - Companies like Aimeike and Langzi reported mixed results, with Aimeike's revenue declining by 21.6% while Langzi's net profit surged by 64.1% [20][24]. Investment Recommendations - The report recommends investing in companies with strong brand matrices and low PE multiples, such as Up Beauty and Proya, as well as those benefiting from the Douyin traffic boost like Marubi and Water Sheep [20][24]. - It also suggests focusing on high-value segments and innovative products from brands like Ruibin and Furuida, and highlights opportunities in the maternal and infant sector with companies like Shengbeila and Haiziwang [20][24].

Investment Rating - The report initiates coverage with a "Buy" rating for the company Water Sheep Co., Ltd. [14] Core Insights - The cosmetics and medical beauty sector has underperformed the market, with the Shenwan Beauty Care Index declining by 2.5% from September 12 to September 19, 2025 [3][4] - The upcoming Double 11 shopping festival is expected to drive significant growth for domestic brands, with recommendations to focus on strong alpha stocks [9][10] - Water Sheep Co., Ltd. is highlighted for its dual business model of proprietary and CP brands, with stable revenue projections of 4-5 billion yuan from 2021 to 2024 and an expected gross margin of 63.01% in 2024 [10][11] Summary by Sections Industry Performance - The cosmetics and medical beauty sector has shown weaker performance compared to the market, with specific indices declining [3][4] - The Shenwan Cosmetics Index fell by 2.6%, while the Shenwan Personal Care Index decreased by 0.6% [4][6] Upcoming Events - The Double 11 shopping festival preparations are in full swing, with domestic brands like Up Beauty and Proya launching new products to capture market share [9] - Key influencers are negotiating promotional strategies to enhance sales during the festival [9] Company Focus: Water Sheep Co., Ltd. - Water Sheep Co., Ltd. is positioned as a leading tech-driven beauty company with a stable revenue forecast and improving profit margins [10][11] - The company has a well-structured brand matrix and is expanding its high-end product lines, with significant growth in its proprietary brands [11][12] - Expected net profits for Water Sheep Co., Ltd. are projected to be 258 million, 331 million, and 398 million yuan for 2025, 2026, and 2027, respectively, indicating substantial growth [14] Market Trends - The Chinese beauty market is witnessing a shift towards domestic brands, with significant market share gains for local players [27] - The overall retail sales of cosmetics showed a growth of 5.1% in August 2025, indicating a recovery in consumer spending [18][21] International Recognition - Chinese beauty brands performed notably at the IFSCC conference, showcasing their advancements in cosmetic science and securing significant awards [22][24]