Market Overview - The Shanghai Composite Index fell by 0.40% on November 20, with 7 industries experiencing gains, led by construction materials and comprehensive sectors, which rose by 1.40% and 0.87% respectively [1] - The beauty and personal care industry had the largest decline, dropping by 2.39%, followed by the coal industry with a decrease of 2.10% [1] Capital Flow Analysis - The net outflow of capital from the two markets reached 47.655 billion yuan, with only 4 industries seeing net inflows [1] - The banking sector led the net inflow with 2.188 billion yuan and a daily increase of 0.86%, followed by the telecommunications sector with a net inflow of 1.000 billion yuan and a rise of 0.51% [1] Beauty and Personal Care Industry - The beauty and personal care industry saw a net outflow of 507 million yuan, with 29 stocks in the sector; only 2 stocks increased while 26 stocks declined [2] - The top net inflow stock in this sector was Jiaheng Jiahua, with an inflow of 7.3004 million yuan, followed by Yiyi Co., which had an inflow of 3.7708 million yuan [2] - Six stocks in the beauty and personal care sector experienced net outflows exceeding 30 million yuan, with the largest outflows from Aimeike (67.368 million yuan), Shuiyang Co. (60.040 million yuan), and Qingsong Co. (44.6899 million yuan) [2][3] Individual Stock Performance - Aimeike had a decline of 3.00% with a net outflow of 67.368 million yuan [2] - Shuiyang Co. dropped by 8.32% with a net outflow of 60.0396 million yuan [2] - Qingsong Co. fell by 3.78% with a net outflow of 44.6899 million yuan [2]

Investment Rating - The industry investment rating is "Positive (Maintain)" [6] Core Insights - The beauty and personal care sector is transitioning from "single functional consumption" to "composite efficacy + emotional consumption," indicating enhanced consumer resilience [4] - The beauty industry is no longer reliant on a single traffic window, with narratives around channel efficiency strengthening [4] - Leading brands exhibit stronger resilience, with a positive outlook on companies with robust brand assets that can capitalize on channel and product cycles [4] Summary by Sections Industry Overview - The Double 11 shopping festival saw a total e-commerce sales of 16,950 billion yuan, reflecting a year-on-year growth of 14.2% [8] - Beauty and personal care sales reached 991 billion yuan, growing by 11.65% [8] - Instant retail sales surged to 670 billion yuan, marking a remarkable growth of 138.4% [8] Market Dynamics - Tmall leads in high-end beauty sales, while Douyin is becoming a significant platform for domestic brands [8] - The top five beauty brands on Tmall include Proya, Estée Lauder, Lancôme, L'Oréal, and SkinCeuticals, with Proya maintaining the top position for three consecutive years [8] - Douyin's beauty sales rankings show Han Shu at the top, followed by Proya and L'Oréal [8] Company Performance - Leading brands like Up Beauty, Ruo Yu Chen, and Mao Ge Ping have shown impressive performance during the Double 11 event [8] - Up Beauty's sales increased by 145% year-on-year, with significant growth on both Tmall and Douyin [8] - Ruo Yu Chen's sales saw a staggering 35-fold increase year-on-year, with Douyin sales growing by over 100% [8]

Market Overview - The cosmetics sector increased by 1.72% on November 19, with Keshare leading the gains [1] - The Shanghai Composite Index closed at 3946.74, up 0.18%, while the Shenzhen Component Index closed at 13080.09, unchanged [1] Key Performers - Keshare (300856) closed at 15.29, up 7.98% with a trading volume of 315,500 shares and a turnover of 475 million yuan [1] - Bavi (920123) closed at 19.72, up 4.89% with a trading volume of 118,600 shares and a turnover of 229 million yuan [1] - Lafang (603630) closed at 24.60, up 4.15% with a trading volume of 145,700 shares and a turnover of 353 million yuan [1] - Other notable performers include Shuiyang (300740) and Tian Cai Ya (603605), with increases of 3.28% and 2.55% respectively [1] Fund Flow Analysis - The cosmetics sector saw a net inflow of 201 million yuan from institutional investors, while retail investors experienced a net outflow of 252 million yuan [2] - Keshare had a net inflow of 63.71 million yuan from institutional investors, while retail investors had a net outflow of 47.79 million yuan [3] - Other companies like Shuiyang and Furuida also experienced significant net inflows from institutional investors, indicating strong interest in the sector [3]

Group 1 - The core viewpoint of the news is that Shuiyang Group Co., Ltd. has seen a significant increase in its stock price, rising by 5.08% to 22.74 CNY per share, with a trading volume of 671 million CNY and a turnover rate of 8.39%, resulting in a total market capitalization of 8.869 billion CNY [1] - Shuiyang Group, established on November 1, 2012, and listed on February 8, 2018, is primarily engaged in the research, production, and sales of cosmetics [1] - The main revenue composition of Shuiyang Group includes 81.84% from lotions and creams, 17.32% from masks, and 0.84% from other supplementary products [1] Group 2 - From the perspective of fund holdings, a fund under Industrial Bank has heavily invested in Shuiyang Group, with the "Industrial Consumption Selected Mixed A" fund holding 773,200 shares, accounting for 4.8% of the fund's net value, making it the ninth largest holding [2] - The "Industrial Consumption Selected Mixed A" fund was established on December 16, 2020, with a current scale of 207 million CNY, and has achieved a year-to-date return of 0.99%, ranking 7811 out of 8138 in its category [2] - The fund manager, Jiang Lisi, has been in charge for 4 years and 340 days, with the fund's total asset size at 369 million CNY, and the best and worst returns during her tenure being -1.92% and -25.64%, respectively [2]

Core Viewpoint - The stock prices of several companies, including Kesh Holdings, Bawei Holdings, and Yiyi Holdings, have seen significant increases, indicating positive market sentiment and potential investment opportunities in these firms [1] Company Performance - Kesh Holdings experienced a stock price increase of over 10% [1] - Bawei Holdings and Yiyi Holdings both saw their stock prices rise by more than 5% [1] - Other companies such as Shuiyang Holdings, Huaye Fragrance, Polaier, and Fulejia also showed upward trends in their stock prices [1]

Core Viewpoint - The beauty care sector experienced significant stock price movements, with several companies seeing notable gains, indicating a potential bullish trend in the industry [1] Company Summaries - Langzi Co., Ltd. reached its daily limit up, reflecting strong investor interest and confidence in its performance [1] - Kesi Co., Ltd. saw an increase of over 10%, suggesting positive market sentiment and potential growth prospects [1] - Other companies such as Bawi Co., Yiyi Co., Shuiyang Co., and Kexin Co. also experienced rapid price increases, indicating a broader rally within the beauty care sector [1]

Group 1 - The beauty care sector is experiencing active trading, with significant stock price increases for several companies [1] - Keshare Co. saw a rise of 5.5%, while Yiyi Co. increased by 4% [1] - Other companies such as Shuiyang Co., Bavi Co., Huaye Fragrance, and Proya also showed upward movement in their stock prices [1]

Core Viewpoint - The National Medical Products Administration of China released an opinion on November 17 to deepen cosmetic regulation reform and promote high-quality industry development through 24 reform measures focusing on innovation, registration management, risk prevention, smart regulation, and international alignment [1] Group 1: Regulatory Changes - The opinion includes measures to encourage innovation and optimize registration and filing management in the cosmetics industry [1] - It aims to strengthen risk prevention across the entire supply chain and enhance smart regulatory capabilities [1] - The initiative seeks to solidify the quality and safety baseline of cosmetics while fostering new productive forces [1] Group 2: Market Impact - Following the announcement, cosmetic stocks surged on November 18, with companies like Liren Lizhuang hitting the daily limit, and others such as Fulejia, Lafang Family, Bawi Co., and Shuiyang Co. also experiencing gains [1] - Current consumer sentiment is identified as a significant driver of cosmetic consumption [1] Group 3: Industry Statistics - As of November 18, there are 21.398 million existing cosmetic-related enterprises in China, with over 30% located in the East China region, followed by South China and Central China [6] - In 2025, 4.249 million cosmetic-related enterprises have been registered, with the highest number of new registrations in the Central China region, accounting for 27% [8]

Group 1 - The beauty and personal care sector has shown a recovery in 2025, with the SW Beauty Index rebounding after a decline from 2022 to 2024, achieving a maximum increase of over 15% and becoming a key area in new consumption [3][9][10] - The cosmetics segment is characterized by intense competition among brands, with domestic brands making significant strides in R&D and distribution, while international brands are adopting localized strategies to regain market share [3][20][25] - The medical beauty market is transitioning from a blue ocean to a red ocean, with domestic companies expected to become major competitors by focusing on affordable and specialized products [3][19][24] Group 2 - The e-commerce operation sector is undergoing a transformation, with companies like RuYuchen and Shuiyang Co. leveraging brand incubation and AI to create new growth avenues [3][19] - Key investment recommendations include domestic brands with strong channel and brand matrices such as MaoGePing, ShangMei Co., and PoLaiYa, as well as companies in the medical beauty sector like AiMeiKe and LongZi Co. [3][19][24] - The report emphasizes the importance of brand matrix construction and product innovation in the cosmetics industry, with companies like ShangMei Co. and PoLaiYa leading the way [3][31][40] Group 3 - The skincare and makeup market is expected to enter a phase of consolidation, with strong brands likely to thrive while weaker ones may struggle [23][24] - The market share of domestic brands is increasing, with a notable decline in the market share of international brands, indicating a significant opportunity for domestic players [25][30] - The report highlights the importance of adapting to changing consumer preferences and channel dynamics, with a focus on online platforms and promotional strategies to enhance brand visibility [48][52][53]

Core Viewpoint - The National Medical Products Administration of China has issued opinions to deepen cosmetic regulation reform and promote high-quality industry development, emphasizing support for the cosmetic industry and encouraging the launch of new products in China [1] Industry Summary - The Chinese cosmetic industry is transitioning from scale expansion to a high-quality phase driven by technology, efficacy, and sustainable development [1] - The market size of the cosmetic industry is projected to reach 1,073.8 billion yuan in 2024, with a steady growth rate of 5%-10% expected over the next five years [1] - Domestic brands have surpassed a 55% market share, leveraging Eastern aesthetic systems to promote cultural confidence and commercial value transformation [1] - The future of the cosmetic industry in China will focus on building competitive barriers through a "full industry chain ecosystem," enhancing research and development, deepening Eastern cultural aesthetics, and expanding global presence [1] Company Summary - Relevant A-share concept stocks mentioned include Beitaini and Shuiyang Co., Ltd. [1]