Core Viewpoint - Aimeike's stock has experienced a decline in recent trading sessions, reflecting broader challenges in its financial performance and market sentiment [1][2]. Group 1: Stock Performance - On October 17, Aimeike's stock fell by 2.03%, trading at 171.02 CNY per share with a total market capitalization of 51.749 billion CNY [1]. - Year-to-date, Aimeike's stock price has decreased by 3.66%, with a 4.90% drop over the last five trading days and a 14.41% decline over the past 20 days [1]. Group 2: Financial Performance - For the first half of 2025, Aimeike reported a revenue of 1.299 billion CNY, a year-on-year decrease of 21.59%, and a net profit of 789 million CNY, down 29.57% compared to the previous year [2]. - Cumulatively, Aimeike has distributed 3.887 billion CNY in dividends since its A-share listing, with 3.012 billion CNY distributed over the last three years [3]. Group 3: Shareholder Structure - As of October 10, Aimeike had 56,100 shareholders, a slight decrease of 0.32% from the previous period, with an average of 3,716 circulating shares per shareholder, which increased by 0.32% [2]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 6.9808 million shares, a decrease of 1.0906 million shares from the previous period [3].

Core Insights - The domestic medical beauty market in China is becoming increasingly competitive, with significant price reductions and patent disputes among leading companies [1][3][6] - Major players are expanding overseas as domestic profit margins shrink, indicating a strategic shift towards international markets [1][11] Market Competition - New Oxygen launched a low-priced "Miracle Youth Needle" at 2999 yuan, significantly undercutting competitors and causing dissatisfaction among upstream material suppliers [3][6] - Huaxi Biological and Juzi Biological are engaged in a fierce dispute over collagen product patents, highlighting the intense competition in the market [3][4] - The competition is characterized by a shift from regulatory competition to market-driven competition, with a growing number of brands entering the space [6][7] Financial Performance - Major companies like Aimeike and Huaxi Biological reported significant declines in revenue and net profit, with Aimeike's revenue and net profit down 21.59% and 29.57% respectively in the first half of the year [7][10] - Huaxi Biological's revenue and net profit also fell by 19.57% and 35.38% respectively, marking a continuous decline over two years [7][10] International Expansion - Chinese medical beauty companies are increasingly looking to international markets, with firms like Aimeike and Huaxi Biological investing in overseas partnerships [1][11] - The strategy involves acquiring or investing in foreign companies to introduce Chinese products to international markets, rather than relying on traditional business development methods [11][12] Emerging Markets - There is a growing opportunity in emerging markets such as Southeast Asia and Latin America, where demand for cost-effective and multifunctional products is rising [12][13] - Companies are focusing on building technological barriers and moving away from the "low-price" label by investing in advanced materials and techniques [13]

Core Insights - The Chinese medical aesthetics market is becoming increasingly competitive, with significant price reductions and patent disputes among leading companies [1][2][3] - Major players are expanding internationally as domestic competition intensifies, with companies like Four Rings Pharmaceutical investing in overseas markets [1][9] - The industry is transitioning from a focus on product registration to market-driven competition, leading to a "price war" and a shift towards a more comprehensive competition model involving product, service, and technology [6][10] Market Dynamics - The medical aesthetics industry in China has evolved from a niche market to a significant sector, but the penetration rate of medical aesthetics products remains low compared to mature markets like Europe and the U.S. [1][6] - New Oxygen's introduction of the "Miracle Youth Needle 3.0" at a price point below 3000 yuan marks a significant price drop in the domestic market [1][2] - The competition among major products such as water light needles, youth needles, and recombinant collagen is intensifying, with numerous new products entering the market [4][6] Financial Performance - Leading companies are experiencing significant revenue declines, with Aimeike reporting a 21.59% drop in revenue and a 29.57% decrease in net profit in the first half of the year [7][8] - Huaxi Biological has also seen a continuous decline in annual performance, with a 19.57% drop in revenue and a 35.38% decrease in net profit in the first half of the year [7][8] International Expansion - Chinese medical aesthetics companies are increasingly looking to international markets for growth, with several firms, including Aimeike and Huaxi Biological, investing in overseas companies [9][10] - The global medical aesthetics market is still in a growth phase, but companies face challenges such as regulatory differences, cultural adaptation, and established local competition [10][12] - Emerging markets in Southeast Asia, the Middle East, and Latin America present opportunities for Chinese companies to expand, as these regions show rapid growth in medical aesthetics consumption [12][13]

Core Points - The Bioeconomy Index (970038) closed at 2319.65 points, up 1.32%, with a trading volume of 23.929 billion yuan and a turnover rate of 1.64% [1] - Among the index constituents, 39 stocks rose while 11 fell, with Boteng Co., Ltd. leading the gainers at 6.85% and Dabo Medical leading the decliners at 2.94% [1] Index Constituents Summary - The top ten constituents of the Bioeconomy Index include: - Mindray Medical (sz300760) with a weight of 13.81%, latest price at 230.50, and a market cap of 279.468 billion yuan [1] - Changchun High-tech (sz000661) with a weight of 5.41%, latest price at 127.16, and a market cap of 51.873 billion yuan [1] - Kanglong Chemical (sz300759) with a weight of 4.66%, latest price at 31.35, and a market cap of 55.746 billion yuan [1] - Other notable constituents include Taige Pharmaceutical, Deep Technology, and Muyuan Foods, each with varying weights and market caps [1] Capital Flow Analysis - The Bioeconomy Index constituents experienced a net inflow of 265 million yuan from institutional investors, while retail investors saw a net outflow of 72.932 million yuan [3] - Key stocks with significant capital flow include: - Mindray Medical with a net inflow of 79.5868 million yuan from institutional investors [3] - Xintai (002294) with a net inflow of 66.974 million yuan, but a net outflow of 87.6434 million yuan from retail investors [3] - Changchun High-tech also saw a net inflow of 66.9424 million yuan from institutional investors, with a notable outflow from retail investors [3]

Core Insights - The medical beauty sector experienced a slight increase of 0.28% on October 15, with Jinbo Biological leading the gains [1] - The Shanghai Composite Index closed at 3912.21, up 1.22%, while the Shenzhen Component Index closed at 13118.75, up 1.73% [1] Medical Beauty Sector Performance - Jinbo Biological (code: 920982) closed at 290.43, with a rise of 5.00% and a trading volume of 21,800 shares, totaling a transaction value of 628 million [1] - Huaxi Biological (code: 688363) closed at 54.72, up 1.30%, with a trading volume of 23,600 shares and a transaction value of 129 million [1] - Aimeike (code: 300896) closed at 175.15, down 0.19%, with a trading volume of 23,500 shares and a transaction value of 412 million [1] - *ST Meigu (code: 000615) closed at 3.52, down 3.03%, with a trading volume of 199,800 shares and a transaction value of 71.2 million [1] Fund Flow Analysis - The medical beauty sector saw a net outflow of 21.57 million from institutional investors and 5.26 million from retail investors, while individual investors contributed a net inflow of 26.84 million [1] - Huaxi Biological had a net inflow of 2.29 million from institutional investors, while it faced a net outflow of 5.18 million from retail investors [2] - *ST Meigu experienced a significant net outflow of 9.34 million from institutional investors, despite a net inflow of 4.25 million from retail investors [2] - Aimeike faced a net outflow of 14.53 million from institutional investors, while retail investors contributed a net inflow of 19.70 million [2]

Core Insights - Aimei Ke (300896) has seen a net financing purchase of 2.2868 million yuan on October 14, 2025, with a financing balance of 1.265 billion yuan, indicating a positive market sentiment towards the stock [1][4]. Financing Activity - On October 14, 2025, the financing buy amounted to 57.0127 million yuan, while financing repayment was 54.7259 million yuan, resulting in a net financing purchase of 228.68 thousand yuan [1]. - Over the past three trading days, Aimei Ke has recorded a cumulative net financing purchase of 2.27373 million yuan, with 13 out of the last 20 trading days showing net financing purchases [1]. - The financing balance on October 14, 2025, was 12.65 billion yuan, representing 3.45% of the circulating market value [2]. Margin Trading Activity - On the same day, there was a net short selling of 600 shares, with a total short selling balance of 19,600 shares [3]. - The total margin trading balance was 1.268 billion yuan, which increased by 0.19% from the previous day [4].

Market Overview - The medical beauty sector experienced a decline of 0.33% on October 14, with Huaxi Biological leading the drop [1] - The Shanghai Composite Index closed at 3865.23, down 0.62%, while the Shenzhen Component Index closed at 12895.11, down 2.54% [1] Individual Stock Performance - Jinbo Biological (code: 920982) closed at 276.60, up 5.58% with a trading volume of 17,000 shares [1] - *ST Meigu (code: 000615) closed at 3.63, up 4.61% with a trading volume of 326,000 shares [1] - Aimeike (code: 300896) closed at 175.49, down 0.10% with a trading volume of 24,200 shares [1] - Huaxi Biological (code: 688363) closed at 54.02, down 1.15% with a trading volume of 33,100 shares [1] Capital Flow Analysis - The medical beauty sector saw a net inflow of 7.7391 million yuan from main funds, while retail funds experienced a net inflow of 1.0341 million yuan [1] - Speculative funds had a net outflow of 8.7732 million yuan [1] Detailed Capital Flow for Individual Stocks - Aimeike had a net outflow of 9.3340 million yuan, down 2.20% [2] - *ST Meigu experienced a net inflow of 1.1847 million yuan, up 1.03% [2] - Huaxi Biological had a significant net outflow of 10.6702 million yuan, down 5.90% [2]

Group 1 - The medical beauty sector experienced a decline of 1.92% on October 13, with Ai Meike 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] - Major stocks in the medical beauty sector showed mixed performance, with *ST Meigu rising by 5.15% to a closing price of 3.47, while Ai Meike fell by 2.32% to 175.66 [1] Group 2 - The net outflow of main funds in the medical beauty sector was 75.6993 million yuan, while retail investors saw a net inflow of 48.3038 million yuan [1] - Specific fund flows for major stocks indicated that Ai Meike had a net outflow of 51.1050 million yuan, representing a decrease of 10.15% [2] - Huaxi Biological and *ST Meigu also experienced significant net outflows of 15.8278 million yuan and 8.7665 million yuan, respectively [2]

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]