Shenwan Hongyuan Securities·2026-03-30 06:43Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry, highlighting strong performance from key players despite a recent market downturn [2][4]. Core Insights - The cosmetics and medical beauty sector has underperformed the market recently, with the Shenwan Beauty Care Index declining by 2.4% from March 20 to March 27, 2026, compared to a 1.7% decline in the Shenwan A Index [4][5]. - Notable companies such as Maogeping, Shangmei, and Linqingxuan reported significant revenue and profit growth for 2025, with Maogeping's revenue exceeding 5 billion yuan, marking a 30% increase, and Shangmei's revenue growing by 35.1% [4][10]. - Linqingxuan achieved a remarkable revenue growth of 102.5%, doubling its revenue from 12.1 billion yuan in 2024 to 24.5 billion yuan in 2025 [16]. Summary by Sections Industry Performance - The cosmetics and medical beauty sector has shown weaker performance compared to the overall market, with specific indices reflecting declines [4][5]. - The Shenwan Cosmetics Index fell by 2.9%, while the Shenwan Personal Care Index increased by 0.5%, indicating mixed performance within the sector [4][5]. Company Highlights - Maogeping: Achieved a revenue of 5.05 billion yuan in 2025, a 30% increase, with a net profit of 1.204 billion yuan, up 36.7% [10][11]. - Shangmei: Reported a revenue of 9.178 billion yuan, a 35.1% increase, and a net profit of 1.154 billion yuan, up 43.7% [11][12]. - Linqingxuan: Revenue reached 2.45 billion yuan, a 102.5% increase, with a net profit of 360 million yuan, up 92.9% [16][17]. - Shanghai Jahwa: Revenue of 6.317 billion yuan, an 11.25% increase, and a net profit of 268 million yuan, marking a return to profitability [20][21]. Market Trends - The report notes a strong performance in the e-commerce sector, with significant growth in online sales for major brands [27][30]. - The overall retail sales of cosmetics in China showed a growth of 4.5% in the first two months of 2026, indicating a resilient consumer demand [30][31]. Strategic Recommendations - The report recommends focusing on companies with strong brand matrices and high growth in GMV, such as Maogeping and Shangmei, while also highlighting potential in the mother and baby segment [4][10]. - It suggests monitoring companies with strong R&D capabilities and product pipelines in the medical beauty sector, such as Aimeike and Langzi [4][10].