Industry Overview - The beauty industry is showing signs of recovery, with a reported 8.8% year-on-year growth in retail sales of cosmetics for December 2025 according to the National Bureau of Statistics [1] - In January 2026, Douyin's beauty GMV increased by over 20% year-on-year, indicating improved daily sales and self-broadcasting efforts by brands [1] Company Insights - According to a report by Guotai Junan, the main brand of Shangmei Co., Han Shu, continues to expand its product categories, while sub-brands Yiye and Anminyou are experiencing significant growth in single products, suggesting a strong multi-brand strategy that could drive future growth [2] Stock Performance - Over the past week (February 5 to February 11, 2026), Shangmei Co.'s stock price has experienced a downward trend, with a decline of 2.61%. The stock reached a high of 67.95 HKD and a low of 62.10 HKD, with a trading volume of approximately 334 million HKD. Technical indicators show that MACD is in negative territory and KDJ is weak, indicating pressure on the stock price [3]

Core Insights - The beauty sector during the Double 11 shopping festival has continued its recovery trend observed since the beginning of the year, with various platforms implementing measures to stabilize and boost the market [1] - Foreign brands have shown improvement this year, while domestic brands have also performed steadily, with leading brands maintaining their positions at the top of various rankings [1] - Domestic brands that possess core technology, ingredient backing, and highlight Eastern cultural characteristics, along with strong brand power, product quality, and operational capabilities, are expected to continue leading and stand out in the competitive landscape [1]

Core Insights - The beauty sector during the Double 11 shopping festival continues to show recovery trends observed since the beginning of the year, with various platforms implementing measures to stabilize and boost the market [1] - Foreign brands have shown improvement this year, while domestic brands have also performed steadily, with leading brands maintaining top positions on major rankings [1] - Domestic brands that possess core technology, ingredient backing, and highlight Eastern cultural characteristics, along with strong brand power, product quality, and operational capabilities, are expected to continue leading and stand out in the competitive landscape [1]