Core Insights - Morgan Stanley reported that during the 618 promotional period from May 13 to 26, 2023, promotional efforts varied significantly among brands, with Proya leading in Tmall beauty and Caitang ranking first in Douyin makeup [1][5] Tmall Rankings - Proya maintained the top position in Tmall beauty rankings during the 618 event, with L'Oreal Paris and Estee Lauder following in the top three [2] - Comfy, a brand under Giant Bio, ranked 3rd on May 13, dropped to 9th on May 15, and fell to 12th from May 16 to 26 in Tmall beauty rankings [1][6] Douyin Rankings - In Douyin makeup, Caitang ranked first, while Comfy's performance fluctuated, indicating a preference for balancing sales growth and profit margins rather than pursuing high rankings [1][5] - High-end skincare brands showed increased focus on Douyin, with seven brands entering the top ten during the promotional period [5] Comfy Brand Insights - Comfy's initial high rankings during e-commerce shopping festivals tend to decline, a pattern observed in previous events like Double 11 [1][6] - The brand's strategy includes collaborating with less promotional-driven key opinion leaders (KOLs) and limiting supply on heavily discounted packages [6] - Recent consumer concerns regarding Comfy products on social media may impact consumer confidence, although the company is expected to address these issues with independent testing results [6] Market Outlook - Morgan Stanley estimates that the recent decline in Giant Bio's stock price to a forward P/E ratio of approximately 22x reflects the market's absorption of some earnings downside risks from consumer feedback [7] - Despite short-term uncertainties, Morgan Stanley maintains a buy rating and advises investors to build long-term positions during stock price weaknesses [7]