Proya(SH:603605) Shenwan Hongyuan Securities·2025-12-22 03:46Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry, highlighting strong performance in the sector [2]. Core Insights - The cosmetics and medical beauty sector outperformed the market, with the Shenwan Beauty Care Index rising by 2.9% from December 12 to December 19, 2025, surpassing the Shenwan A Index by 2.4 percentage points [3][4]. - Lin Qingxuan, a leading high-end plant skincare brand, is set to launch its IPO in Hong Kong, with a focus on its core product, camellia oil, which has sold over 30 million bottles [9]. - Minooxidil products from Mandi International dominate the hair growth market, with a market share of approximately 57% in the hair loss treatment sector [10][13]. - Proya has invested in a cosmetic raw material company, Huaguan Biotechnology, to enhance its whitening product offerings, targeting a market expected to exceed 150 billion yuan by 2027 [19][22]. Summary by Sections Industry Performance - The cosmetics and medical beauty sector showed strong performance, with the Shenwan Beauty Care Index increasing by 2.9% during the specified period, outperforming the Shenwan A Index [3][4]. Company Highlights - Lin Qingxuan's product matrix includes 188 SKUs, with camellia oil contributing 37% to revenue in 2024, while offline channels are expected to generate 40.9% of revenue [9]. - Mandi International's revenue grew from 982 million yuan in 2022 to approximately 1.455 billion yuan in 2024, with a CAGR of 21.7% [11]. - Proya's strategic investment in Huaguan Biotechnology aims to capture a significant share of the whitening market, with new product launches and patent approvals [19][22]. Market Trends - The Chinese consumer healthcare market is projected to grow from 931.3 billion yuan in 2018 to 1.642 trillion yuan in 2024, driven by increased health awareness and digital transformation [12]. - The hair health management market is expected to grow at a CAGR of 17.7% from 2018 to 2024, indicating strong demand for hair loss treatments [12][13]. - The overall retail sales of cosmetics in China reached 428.5 billion yuan in the first eleven months of 2025, with a year-on-year growth of 4.8% [17][18].