Group 1 - The article discusses the launch of the "High-Quality Consumption Observation" series by Southern Metropolis Daily, focusing on nine popular sectors including beauty economy, outdoor sports, and pet economy, aiming to boost consumer confidence and economic development [2][3] - A committee will be formed in collaboration with various chain associations to evaluate and select the "2025 High-Quality Consumption Brand TOP 100" based on criteria such as quality, growth, innovation, and social responsibility [2] - The integration of artificial intelligence (AI) in the consumer sector is highlighted, particularly in marketing, where AI is becoming a key player in enhancing consumer engagement and driving market growth [2][3] Group 2 - Major e-commerce platforms are utilizing AI in their marketing strategies for the upcoming 618 shopping festival, with Alibaba's Alimama promoting "AI-driven quality wins" to enhance the entire business process from pricing to advertising [3][4] - JD Cloud is offering five free AI marketing tools to merchants during the 618 period, aiming to streamline operations and marketing efforts [3][4] - The acceptance of AI marketing varies across industries, with sectors like beauty and personal care showing higher acceptance due to their reliance on visual content and emotional resonance [4][6] Group 3 - International beauty giants like Estée Lauder are leveraging AI to optimize their marketing processes, indicating a trend where AI is increasingly integrated into content creation while strategic decision-making remains human-driven [6][9] - AI's role in enhancing marketing efficiency is evident, with Alimama reporting a 16% increase in ROI and a 65% rise in click-through rates due to AI applications [9] - Digital human live streaming is emerging as a popular application of AI marketing, significantly improving conversion rates and reducing costs for brands [10][11] Group 4 - The article notes that while AI excels in data analysis and content generation, the formulation of effective advertising strategies still requires human insight, as it involves understanding brand values and consumer psychology [9][10] - AI systems are being implemented in live commerce to streamline processes, with companies reporting significant improvements in operational efficiency through AI-driven tools [17][19] - The integration of AI in live streaming is transforming the industry, allowing for rapid content generation and improved decision-making, while still emphasizing the importance of human presence in live interactions [19][20]

Investment Rating - The report maintains a positive outlook on the pet supplies sector, AI glasses, and the home improvement market, highlighting potential acquisition opportunities and new product launches [2][6][27]. Core Insights - The report emphasizes the resilience of essential consumer goods in the personal care sector, with a notable trend towards domestic brands, particularly during promotional events like the 618 sales [6][14]. - The pet supplies market is experiencing consolidation opportunities, with companies like Tianyuan Pet and Yiyi Co. being recommended for their strong market positions and growth potential [6][7]. - The AI glasses segment is expected to see significant product launches in the latter half of 2025, driven by collaborations between major tech companies [12][20]. - The report highlights the positive impact of government policies on the real estate market, which is anticipated to stabilize and boost related sectors, including home improvement [27][28]. Summary by Sections New Consumer Trends - The report identifies the pet supplies sector as a key area for mergers and acquisitions, recommending companies such as Tianyuan Pet and Yiyi Co. for their strong market presence and growth prospects [6][7]. - AI glasses are positioned for growth with new product launches expected from major players like Google and XREAL, indicating a robust market expansion [12][20]. Personal Care Sector - The personal care market shows resilience, with domestic brands gaining traction, particularly during promotional periods [14]. - Recommended companies in this sector include Baiya Co., Haoyue Care, and Dengkang Oral Care, which are expected to benefit from the ongoing consumer trends [14][15]. Home Improvement and Real Estate - The report notes that government initiatives are likely to support the real estate market, leading to improved conditions for the home improvement sector [27][28]. - Companies like Sophia and Oppein Home are highlighted for their potential to benefit from the anticipated recovery in the housing market [23][27]. Paper Industry - The report mentions a price increase in the paper sector, with expectations for price stabilization due to supply adjustments [25]. - Recommended companies in this space include Sun Paper, which is noted for its integrated operations and cost advantages [25]. Export and Trade - The report discusses the impact of tariff changes on exports, particularly in the light industrial sector, with a focus on companies that have a strong competitive edge [6][20].

Summary of Key Points from the Conference Call Industry Overview - The new consumption brands are concentrated in traditional sectors such as personal care, household cleaning, and gold jewelry, which generally exhibit moderate growth. However, these brands demonstrate strong alpha characteristics, achieving high growth under weak beta effects [1][2][3] - The current economic environment has shifted consumer preferences towards products and services that meet basic needs, favoring new consumption brands that address pain points and provide emotional or practical value [4][5] Core Insights and Arguments - The current wave of "new quality consumption" is characterized by rapid revenue growth alongside profitability, driven by product positioning upgrades that enhance quality, emotional value, or address consumer pain points [2][5][8] - Traditional sectors like personal care and gold jewelry still have significant growth potential, particularly as e-commerce penetration rates increase. Companies that transition from traditional distribution logic to product-driven strategies are more likely to succeed [6][7] - New consumption companies such as Pop Mart and Miniso have shown performance that significantly exceeds market expectations, leading to valuation premiums due to their strong growth and scarcity in the market [9][10] Market Trends and Consumer Behavior - The current economic environment has not shown significant improvement, leading consumers to prefer products that fulfill basic needs. This trend suggests that new consumption brands may continue to perform well if the economic situation remains unchanged [4][11] - There is a notable shift in consumer behavior, with a greater emphasis on product quality and value for money, moving away from blind pursuit of high brand premiums. Companies must focus on product upgrades to meet these evolving consumer demands [10][12] Unique Characteristics of New Quality Consumption - New quality consumption brands are not new entrants but established companies with strong consumer recognition, often with over 20 years of history [5][10] - These brands leverage e-commerce, internet, and content marketing to achieve rapid market penetration while maintaining profitability, unlike many companies in the previous consumption wave that operated at a loss [5][8] Investment Implications - The current market environment favors companies with strong growth potential and scarcity, as these firms are more likely to attract investor interest. Their performance and valuation dynamics are expected to continue to support stock prices [11][21] - The competitive landscape in traditional sectors is tightening, allowing companies like Dengkang Oral Care to rapidly gain market share through innovative products and effective e-commerce strategies [17][23] Noteworthy Companies and Performance - In the beauty sector, brands like Perfect Diary and domestic brands are showing strong growth, while traditional international brands are losing market share [19][24] - In the gold jewelry sector, companies such as Chaohongji and Mankalon are experiencing robust growth by integrating emotional value into their products, leading to a shift in their valuation models [26] Conclusion - The new consumption trend is expected to persist, with a focus on individual company performance rather than broad sector recovery. Companies with established brands and innovative product offerings are likely to see continued success in the evolving market landscape [15][21][16]

Investment Rating - The report maintains a recommendation for the beauty and personal care industry, highlighting the continued growth of leading domestic brands [2]. Core Insights - The beauty and personal care sector has shown a divergence in performance, with leading domestic brands achieving good growth due to their competitive pricing, differentiated products, and effective online operations [1][10]. - The upcoming 618 shopping festival is expected to further catalyze growth for domestic brands, particularly in the cosmetics sector [1][6]. Summary by Sections Cosmetics - In 2024 and Q1 2025, leading domestic brands continued to show strong growth, with significant revenue increases reported: - Molybdenum Biological: +33% revenue, +32% net profit - Giant Biological: +57% revenue, +42% net profit - Upper Beauty: +62% revenue, +69% net profit [11][13]. - The overall performance of the cosmetics sector is characterized by a mix of growth and decline among various companies, with some like Proya showing resilience in profit despite revenue slowdowns [12][13]. - The report suggests focusing on brands with strong single-product strategies and innovative ingredients, such as Giant Biological and Molybdenum Biological, as well as those with strong brand positioning like Mao Geping [1][6]. Personal Care - The personal care segment has seen robust performance from leading domestic brands, with notable revenue growth in Q1 2025: - Baiya: +30% - Stable Medical: +36% - Hao Yue Care: +42% [6][12]. - The report emphasizes the importance of product upgrades and channel expansion for these brands, which have outperformed OEM companies [1][6]. - The ongoing trend of online expansion and the shift towards mid-to-high-end branding remains strong, with companies like Baiya and Stable Medical showing promising developments [6][12]. Market Trends - The overall market for cosmetics in early 2025 showed a slight increase in retail sales, with a year-on-year growth of 4.0% in the first four months [23]. - Online platforms like Tmall and Douyin have seen varying performance, with Douyin showing higher growth rates in certain categories compared to Tmall [26][29]. Key Brand Performance - Key brands have demonstrated significant growth in both Tmall and Douyin platforms, with notable increases in GMV for brands like Mao Geping and Kefu Mei [33]. - The report highlights the competitive landscape, with domestic brands increasingly capturing market share from international brands due to their pricing and innovative marketing strategies [1][6].

智通财经APP获悉，兴业证券发布研报称，当前美容护理整体推荐顺序，个护>化妆品>线下美护，个护 板块由于线上化所带来的竞争格局变化，给国货品牌带来突围机会。国民收入提高与健康需求增强推动 个护行业市场规模稳步扩大，国货替代空间大，民族自信与技术创新推动国货品牌市场份额持续提升， 渠道红利仍存，带来结构性竞争格局变化机会。25Q1化妆品行业增速超预期，渠道表现分化，外资增 长乏力，面临业绩+撤柜双重压力，品牌壁垒松动;头部国货品牌持续推新，顺应"香氛经济"趋势，扩充 大单品矩阵。医美行业成长性属于消费板块头部，供给创造需求。 兴业证券主要观点如下： 个护：行业延续增长，抖音个护GMV增速领跑化妆品，线上化带来新机遇 抖音渠道红利驱动个护线上化加速，2024年抖音个护GMV增速达38.86%，显著高于化妆品。线上化带 来竞争格局变动，头部国货品牌凭借技术专利与全域运营能力抢占增量。建议配置以下属性标的：(1) 技术护城河明确(抗敏/益生菌/智肽等专利布局)，具备一定品牌力;(2)全域运营能力突出(线上发展快，抖 音GMV增速突出)，推荐登康口腔、润本股份，建议关注拉芳家化、若羽臣等兼具技术迭代实力与渠道 把控力的 ...

Group 1: Core Insights - The external trade environment is highly uncertain, and traditional domestic consumption is relatively weak, making it difficult to show an overall upward trend [1] - The investment logic suggests a bottom-up approach to select leading companies with differentiated competitive advantages and strong earnings certainty [1] Group 2: New Consumption Sectors - The overall consumption is under pressure, but some sub-sectors show high growth potential; companies are adapting to channel changes and industry opportunities [2] - In the personal care sector, domestic brands are leveraging e-commerce and product upgrades to gain market share, with recommendations for companies like Baiya Co. and Haoyue Care [2] - The AI glasses sector is expected to see accelerated product launches by 2025, with Mingyue Lens recommended for its unique advantages [2] - The emotional consumption sector is gaining traction, with recommendations for companies like Chenguang Co. that are investing in IP resources [2] Group 3: Traditional Consumption Sectors - The home and paper industries face pressure from the overall consumption environment; investment points include the ability of quality stocks to leverage policy support and operational advantages [4] - In the home sector, the expansion of subsidy categories and amounts in 2025 presents opportunities for leading companies like Oppein and Sophia [4] - The paper industry is closely tied to economic cycles, with recommendations for Sun Paper due to its cost control capabilities and upcoming production [4] Group 4: Export Sector - Due to high uncertainty regarding tariffs, companies with established overseas production capabilities are at an advantage; some export sectors are highly dependent on U.S. and Vietnamese production [5] - Companies with lower exposure to U.S. exports are considered safer, while certain sub-sectors still show high growth potential due to rigid demand and changing consumption habits [5] - Recommended companies in the export sector include Jiayi Co., Gongchuang Turf, and Deou Technology [5]

Summary of Conference Call Records Industry Overview - The new consumption sector shows significant differentiation, with the personal care industry growing faster than medical beauty and cosmetics. Brand iteration is accelerating, leading to widening performance gaps among companies such as Mao Ge Ping, Shangmei, and Juzi Biological, which are experiencing rapid growth, while Shanghai Jahwa and Huaxi Biological are seeing slower growth [1][4]. Key Insights and Arguments - **Beauty Sector Valuation**: The beauty sector still has room for valuation improvement, with PEG values referencing 2019 levels. Recommended companies include Jingbo Biological, Juzi Biological, and Dengkang Oral Care, along with Japanese brands Perfect Diary and Shangmei Life [1][5]. - **Food and Beverage Sector**: Focus is on food additives and snacks, with Baiming Chuangyuan expected to experience rapid growth from 2024 to 2026 due to capacity release and new product approvals. The current valuation is around 20 times. The konjac products are driving explosive growth in the snack sector, with attention on Yanjinpuzi and Wehaomei [1][6]. - **High School Education Reform**: The reform in the high school education system is favorable for private high schools, with Tianli International Holdings being undervalued at a PEG of about 0.3 and an annual growth rate of approximately 35%. Other companies like Xueda Education and Kevin Education are also worth monitoring [1][7][8]. - **Domestic Brands Growth**: Domestic brands are rapidly rising, while overseas brands, particularly from Japan and South Korea, are declining. The American brand group has collapsed in the domestic market, with only L'Oréal managing to sustain itself, but its momentum is expected to diminish next year [2]. Additional Important Insights - **AI in Consumption**: The AI-enhanced consumption sector is thriving, with AI glasses, AI e-commerce, AI education, and AI toys being the four core directions. Recommended companies include Kangnait Optical, with attention on Focus Technology, Xiaogoods City, and Haizhu Wang [3][11]. - **Traditional Retail Recommendations**: In traditional retail, focus on high dividend-yielding stocks. Companies like Chongqing Department Store, Bubugao, and Dashang Co. are highlighted for their stability and dividend performance [12]. - **Pet Industry Trends**: The pet industry is showing strong sales trends, particularly during the 618 shopping festival, with domestic brands rapidly gaining market share. Brands like Guibao Pet and Zhongchong Co. are maintaining strong growth momentum [16][17]. - **Home Appliance Sector**: The home appliance sector is expected to see improved revenue due to promotional activities and national subsidy policies, despite increased price competition. Companies like Midea and Haier are actively engaging in price wars to boost sales [18][19][20]. Conclusion The new consumption sector is characterized by rapid growth in personal care and food sectors, with significant opportunities in AI applications and domestic brands. The education reform and pet industry trends also present promising investment avenues. The home appliance sector faces challenges but shows potential for recovery through strategic pricing and export opportunities.

Investment Rating - The report indicates a positive outlook for the light industry, particularly in personal care and jewelry sectors, with several companies exceeding expectations in Q1 2025 [3][5][6]. Core Insights - The light industry shows a steady performance, with essential consumer goods outperforming overall trends. Companies like Baiya Co., Haoyue Care, and Chaohongji have reported better-than-expected results in Q1 2025 [3][5][6]. - The two-wheeler and motorcycle sectors are experiencing unexpected growth driven by new national standards and government subsidies, with companies like Ninebot and Chunfeng Power also exceeding expectations in Q1 2025 [3][5][12]. - Export demand remains strong, with product structure improvements and favorable exchange rates supporting profitability for companies like Jiangxin Home and Jiayi Co. in Q1 2025 [3][5][20]. - The home furnishing sector is benefiting from government subsidies, leading to a reduction in revenue decline, with leading companies like Kuka Home and Oppein showing slightly better-than-expected performance in Q1 2025 [3][5][20]. - The packaging industry maintains a stable structure, with leading companies increasing their market share, while metal packaging profitability is slightly under pressure [3][5][20]. - The paper industry has seen a continued decline in profitability in H2 2024, but Q1 2025 shows signs of recovery, with companies like Sun Paper benefiting from integrated supply chain advantages [3][5][20]. Summary by Sections Light Industry - Revenue recovery is evident in Q1 2025, with essential consumer goods showing stronger growth compared to optional and mass consumer goods. The revenue growth rates for essential consumer goods were 20.4% in Q1 2025, while mass consumer goods showed a decline of 0.9% [6][7][10]. - Profitability remains weaker than revenue growth, with net profits for essential consumer goods declining by 49.8% in Q3 2024, but showing a slight recovery of 1.5% in Q1 2025 [7][11]. Two-Wheeler & Motorcycle - The domestic two-wheeler market is benefiting from a transition to new national standards, with revenue growth rates of 50.9% in Q1 2025. Profit margins are improving due to product upgrades and reduced price competition [12][13][14]. - Export performance for motorcycles is also strong, with revenue growth of 32.2% in Q1 2025, driven by seasonal demand and product upgrades [14][19]. Exports - Export demand continues to be robust, with key categories like fitness equipment and insulated cups showing double-digit growth. Companies like Jiayi Co. and Hars have reported significant revenue increases of 67% and 22% respectively in Q1 2025 [20][23]. - The exchange rate has positively impacted export performance, with the USD/CNY exchange rate showing a slight depreciation, benefiting exporters [20][23]. Home Furnishing - The home furnishing sector is experiencing a narrowing of revenue decline due to government subsidies, with leading companies like Kuka Home and Oppein showing slight improvements in Q1 2025 [20][23]. Packaging - The packaging industry remains stable, with leading companies increasing their market share. However, profitability in metal packaging is facing slight pressure due to competitive pricing [20][23]. Paper Industry - The paper industry has faced declining profitability, but Q1 2025 shows signs of recovery, with companies like Sun Paper reporting improved performance due to supply chain advantages [20][23].

Investment Rating - The industry investment rating is "Outperform the Market" [8] Core Viewpoints - The report highlights strong growth in the personal care e-commerce sector, particularly in April, with local brands rapidly gaining market share through platforms like Douyin [1][2] - The report emphasizes the resilience of various personal care categories, with significant year-on-year growth in sales across multiple platforms [2] Summary by Relevant Sections E-commerce Performance - In April, the GMV (Gross Merchandise Value) for sanitary napkins on Tmall increased by 22% year-on-year, with notable growth from local brands such as Naise Princess (+21%), Jieting (+60%), and Taotao Oxygen Cotton (+136%) [2] - Douyin saw a remarkable 62% year-on-year increase in sanitary napkin GMV, with local brands like Naise Princess (+377%) and Jieting (+52%) showing strong performance [2] Oral Care - The GMV for toothpaste on Tmall rose by 24% year-on-year, with local brands like Lengsuaning (+158%) and Yunnan Baiyao (+42%) outperforming foreign brands [2] - Douyin's toothpaste GMV increased by 78% year-on-year, with local brands leading the rankings [2] Diapers - The GMV for diapers and pull-ups on Tmall increased by 42% year-on-year, with leading brands such as Huggies (+62%) and Pampers (+118%) driving category growth [2] Tissue Products - The GMV for tissue products on Tmall rose by 22% year-on-year, with major brands like Vinda (+26%) and Heart to Heart (+46%) showing upward sales trends [2] Investment Recommendations - The report recommends continued investment in the personal care sector, highlighting the rapid growth of local brands and their expansion into various online and offline channels [2]

Group 1 - The overall performance growth has turned positive, with technology and certain cyclical sectors showing strong results, particularly in emerging technologies and the "two new" sectors driving growth in automotive, home appliances, and engineering machinery [1][2] - In Q1 2025, the net profit growth of the entire A-share non-financial sector improved to +4.7% year-on-year, driven by a significant reduction in expense ratios and stabilization of gross margins [2][4] - The technology sector, particularly AI hardware, continues to show strong growth, while cyclical industries like non-ferrous metals and chemicals also reported high growth rates [3][4] Group 2 - The real estate sector has seen some financial indicators improve, with a notable increase in dividend yields, indicating potential investment value [6][7] - In 2024, the revenue growth of key property companies was +4.2%, while profits continued to decline by -28.3%, highlighting a divergence in performance among different companies [7][8] - The average dividend yield for key property companies reached 5.04%, with three companies exceeding 10% [7][9] Group 3 - The food and beverage sector experienced a slowdown, with overall revenue growth of +2% and net profit growth of +4% in 2024, while Q1 2025 showed minimal growth [10][11] - The liquor segment remains stable, with high-end brands showing strong performance, while the consumer goods segment is seeing structural growth opportunities, particularly in snacks and beverages [11][12] - The dairy segment faced challenges, with a significant decline in revenue and profit in 2024, but showed signs of recovery in Q1 2025 [12][13] Group 4 - The beauty and personal care sector reported a revenue increase of 13% and a slight net profit increase of 0.2% in 2024, with individual segments like personal care showing significant growth [14][15] - The medical aesthetics segment is led by collagen products, while the cosmetics segment showed mixed performance, particularly in the Hong Kong market [15][16] - The sector is expected to benefit from product innovation and the rise of domestic brands, with a focus on long-term growth potential [14][16] Group 5 - The apparel and luxury goods sectors are facing mixed performance, with overseas sports brands showing strong revenue growth while luxury brands are under pressure [18][19] - The U.S. apparel retail market grew by 2.6% in 2024, with outdoor and high-end sports segments performing well [18][19] - The luxury goods sector is cautious about 2025, with many brands indicating limited price increases due to rising costs rather than for revenue generation [21][22] Group 6 - The semiconductor equipment and materials sectors are expected to benefit from increased capital expenditures in advanced processes, with significant growth projected for 2025 [30][31] - The semiconductor equipment sector reported a revenue increase of 27.01% in 2024, while the materials sector also showed robust growth [31][32] - The valuation of the semiconductor sector remains reasonable, with a focus on growth potential and the performance of leading companies [33] Group 7 - The optical industry is experiencing varied performance, with strong growth in the Apple supply chain while Android-related products face challenges [35][36] - Companies like Crystal Optoelectronics and Lantech Optical reported significant revenue growth in Q1 2025, driven by increased demand for specific products [35][36] - The automotive optical segment showed stable performance, with some companies reporting growth despite seasonal challenges [36] Group 8 - The computer industry is showing signs of recovery, with an increase in the number of companies reporting positive revenue and profit growth in Q1 2025 [38][39] - The overall revenue for the computer sector in 2024 was 12,693.99 billion, with a notable recovery in Q1 2025 [39][40] - Large-cap companies are performing more steadily compared to mid and small-cap companies, with AI and energy IT sectors showing significant recovery [40][41]