Shenwan Hongyuan Securities·2026-03-01 14:14Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry [2] Core Insights - The cosmetics and medical beauty sector has underperformed the market, with the Shenwan Beauty Care Index declining by 0.9% from February 6 to February 27, 2026, which is 4.9 percentage points lower than the Shenwan A Index [4][5] - The 38th promotional event on Tmall is ongoing, featuring collaborations with top influencers and significant sales from domestic brands like Proya and Maogeping [10] - Huaxi Biological reported a net profit of 291 million yuan for 2025, a 67.03% increase year-on-year, indicating a positive strategic transformation [4] Summary by Sections Industry Performance - The Shenwan Cosmetics Index fell by 0.9%, underperforming the Shenwan A Index by 4.9 percentage points, while the Shenwan Personal Care Index rose by 2.8%, lagging behind the Shenwan A Index by 1.2 percentage points [4][5] Promotional Activities - The Tmall 38 Festival is a major promotional event, running for over two weeks, with significant participation from domestic brands and influencers [10] - Brands like Proya, Maogeping, and Betaini are collaborating on popular products, with sales performance to be analyzed post-event [10] Company Highlights - Huaxi Biological's net profit for 2025 is projected at 291 million yuan, a 67.03% increase year-on-year, with expectations for continued growth in 2026 [4] - The company is transitioning from an agency model to a multi-brand strategy in the sports nutrition sector, showing stable revenue growth from 1.447 billion yuan in 2023 to 1.609 billion yuan in the first three quarters of 2025 [11][12] Market Trends - The global beauty giant Cosmax reported a revenue of 2.39 trillion KRW (approximately 11.514 billion yuan) for 2025, a 10.7% year-on-year increase, driven by the K-Beauty trend [22][24] - The Chinese skincare market is projected to reach 271.2 billion yuan in 2024, with domestic brands gaining market share against international competitors [27][28]