Bloomage Biotech(SH:688363) Shenwan Hongyuan Securities·2026-03-08 12:53Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry, highlighting potential growth despite recent market underperformance [2][3]. Core Insights - The cosmetics and medical beauty sector has underperformed the market, with the Shenwan Beauty Care Index declining by 3.0% from February 27 to March 6, 2026. The Shenwan Cosmetics Index fell by 4.9%, while the Shenwan Personal Care Products Index decreased by 0.7% [3][4]. - Upbeauty Co., Ltd. has exceeded expectations for 2025, forecasting revenue between 9.1 billion and 9.2 billion yuan, representing a year-on-year increase of 34.0%-35.4%. The net profit attributable to shareholders is expected to be between 1.14 billion and 1.16 billion yuan, reflecting a growth of 41.9%-44.4% [9]. - The report emphasizes the importance of Upbeauty’s core anti-aging product line, which is continuously iterating to meet the upgrading trend of domestic anti-aging consumption, thereby enhancing both brand and product strength [9]. Summary by Sections Industry Performance - The cosmetics and medical beauty sector has shown weaker performance compared to the overall market, with significant declines in key indices [3][4]. - The report notes that the Shenwan Cosmetics Index's decline of 4.9% is notably worse than the Shenwan A Index by 2.5 percentage points [4]. Company Highlights - Upbeauty Co., Ltd. is highlighted for its strong performance, with a positive earnings forecast for 2025, driven by its core business and product innovation [9]. - Huaxi Biological (688363.SH) reported a net profit of 291 million yuan for 2025, a year-on-year increase of 67.03%, indicating a successful strategic transformation [3][9]. - Yixian E-commerce reported a revenue of 4.3 billion yuan for 2025, a 26.7% increase year-on-year, marking its first annual Non-GAAP profit since its listing [22]. Market Trends - The report identifies a structural growth phase in the nutrition and health food market, with a market size reaching over 100 billion yuan, significantly outpacing traditional food sectors [11]. - The online DTC channel is recognized as a core growth engine for the industry, with companies like Xizi Health achieving over 98% of their revenue from online sales [11]. Investment Recommendations - The report recommends focusing on companies with strong channel and brand matrices, such as Upbeauty Co., Ltd. and Mao Ge Ping, which are expected to see high GMV growth [3][9]. - It also suggests monitoring companies with improving performance metrics, including Proya, Marubi, and Huaxi Biological, as well as those in the maternal and infant sector like Shengbeila and Kidswant [3].