Core Viewpoint - CICC maintains a "outperforming the industry" rating for Giant Bio (02367) with a target price of HKD 56, indicating a 55% upside potential based on 25/23x P/E for 2026-2027 [1] Recent Events - On January 15, Giant Bio announced the approval of its "Recombinant Type I α1 Collagen and Sodium Hyaluronate Composite Solution" as a Class III medical device, marking it as the world's first product aimed at improving cheek smoothness [2] - The approval of this product is expected to expand the company's aesthetic medicine product matrix and validate its leading technological research and development capabilities [2] Future Product Pipeline - The company has a rich pipeline for aesthetic medicine, with cross-linked neck wrinkle products receiving priority review status and cross-linked nasolabial fold products progressing smoothly [3] - The approval of the first two aesthetic products has confirmed the company's technological leadership and safety, with strong channel resources and operational experience expected to enhance future product launches [3] Cosmetics Product Matrix and Channel Expansion - The company has a clear plan for product and channel expansion, with a rich reserve of new products including the "Kemei" collagen repair series and plans for brand upgrades and new product launches in 2026 [4] - In terms of marketing, the company has strengthened its collaboration with key influencers, such as launching a New Year gift box with Li Jiaqi, and plans to enhance its online influencer matrix and self-operated team while expanding offline coverage [4]

Core Viewpoint - Company maintains a "outperforming the industry" rating for Giant Bio (02367) with a target price of HKD 56, indicating a potential upside of 55% based on 26-27 P/E ratios of 25x and 23x respectively, supported by strong R&D capabilities, brand recognition, and team cohesion [1] Recent Events - The company announced on January 15 that its "Recombinant Type I α1 Collagen and Sodium Hyaluronate Composite Solution" has been approved as a Class III medical device, marking it as the world's first product aimed at improving cheek smoothness [2][3] - The approval is expected to expand the company's aesthetic product matrix and validate its leading technological R&D capabilities [2] Future Product Pipeline - The company has a rich pipeline of aesthetic products, including cross-linked neck wrinkle products that have received priority review status and cross-linked nasolabial fold products that are progressing smoothly [3] - The approval of the first two aesthetic products has confirmed the company's technological leadership and safety, with strong channel resources and operational experience that can be reused for future product launches [3] Cosmetics Product Matrix and Channel Expansion - The company has a clear plan for product and channel expansion, with a rich reserve of new products including the "Kefumei Collagen Repair," "Focus," and "Order" series set to launch [4] - The company plans to upgrade the "Keli Jin" brand and introduce new products by 2026, while also enhancing collaboration with key influencers like Li Jiaqi for promotional activities [4] - There is a focus on strengthening online influencer networks and self-operated teams, as well as expanding offline channels including cinema lines, OTC, and CS/KA channel coverage [4]

Core Viewpoint - The approval of the recombinant type I α1 collagen and sodium hyaluronate composite solution by the National Medical Products Administration of China marks a significant milestone for the company, enhancing its position in the aesthetic medicine market [1] Group 1: Product Approval - The company's wholly-owned subsidiary, Shaanxi Juzhi Biotechnology Co., Ltd., received the Medical Device Registration Certificate for the composite solution, which is the first of its kind globally for improving cheek smoothness [1] - The product is primarily composed of recombinant collagen and sodium hyaluronate, intended for injection into the dermis [1] Group 2: Market Impact - The stock price of the company increased by 5.38%, reaching HKD 37.84, with a trading volume of HKD 16.51 million following the announcement [1] - CICC expressed optimism regarding the product's approval, which is expected to further expand the company's aesthetic product matrix and validate its leading technological research and development capabilities [1] Group 3: Future Strategy - The company plans to steadily advance the product's market launch and promotion through a diversified product portfolio, comprehensive channel network, and refined brand operations [1] - The aim is to provide differentiated solutions and continuously strengthen its leading market position in the health and beauty sector [1]

Core Insights - The 11th New Oxygen Asia-Pacific Aesthetic Medicine Industry Summit was held in Sanya, focusing on "value return" to reshape the technical value of doctors and promote high-quality industry development [1] - By 2025, the aesthetic medicine industry is expected to undergo structural changes, with an estimated 12,000 related enterprises being deregistered, a 50% increase compared to 2024, nearing historical peaks [1] - Consumers are increasingly rational, prioritizing qualifications, brand reputation, and professional expertise when choosing aesthetic institutions, with safety being the primary concern for treatment projects [1] Industry Trends - The aesthetic medicine market in China has reached a scale of hundreds of billions, expanding at a compound annual growth rate of 22.6%, making it one of the most promising core markets globally [2] - New Oxygen is leveraging its industrial platform and digital technology to implement "value return," enhancing service quality by curating high-quality merchants and streamlining SKUs to meet consumer demands for quality and diversity [2] - Despite the industry's transformation phase, there is a belief that the continuous release of aesthetic medicine demand will lead to new development opportunities, with a focus on maintaining medical value and team consensus during challenging external conditions [2] Event Highlights - The summit attracted nearly 400 industry representatives, including associations, brand institutions, and aesthetic doctors, and awarded over 260 prizes across 10 aesthetic medicine subfields [2]

巨子生物旗下六大品牌均以公司核心原料重组胶原蛋白为主要功效成分，受到产品含量热议短期业绩承 压。六大品牌包括功效型护肤品核心品牌可复美和可丽金（两者贡献公司95%以上收入），和针对皮肤 修复/皮肤炎症/疤痕修复/口腔溃疡/女性护理的医用敷料品牌可复美/可预/可痕/可复平/利妍，公司已发 布I/III/IV 型胶原蛋白用于不同产品。2024 年可复美和可丽金分别实现收入45.4/8.4 亿元，2021-2024 年 两个品牌复合增速为 73.4%/11.8%，可复美受益于公司战略侧重发展较快。2Q25 市场围绕重组胶原蛋 白含量与检测方法的热议持续发酵，对巨子生物的短期经营构成了直接压力。从渠道看，由于大单品可 复美胶原棒主要在线上直营渠道销售，我们判断25 年线上承压，但线下直营仍实现正增长。从品牌 看，25年可复美品牌受到冲击较大，可丽金品牌也有所波及。 机构：海通国际 研究员：寇媛媛/吴颖婕 我们长期看好重组胶原蛋白赛道，在安全性、功效性及可持续性三个维度上展现出的综合优势，构建了 行业发展的底层驱动力。首先，由于重组胶原蛋白生产过程完全在受控的发酵环境中进行，有效规避了 动物源胶原蛋白可能携带的病毒或引 ...

Core Viewpoint - The report from CITIC Securities indicates a gradual recovery in high-end consumption in China since Q3 2025, driven by the wealth effect from rising stock markets, with positive signs from international luxury brands and high-end retail properties [1] Group 1: Recovery Indicators - International luxury brands have shown signs of recovery since Q2 2025, with revenue growth returning in the Asia-Pacific region by Q3 2025 [2] - High-end retail properties in China began to recover at the end of 2024 and early 2025, with improved occupancy rates and sales, particularly in top luxury malls [2] - The global luxury market also entered a recovery phase starting Q3 2025 [2] Group 2: Investment Opportunities in High-End Consumption - The recovery of high-end consumption is influenced by factors such as the proportion of VIC (Very Important Customer) groups, the sequence of consumption based on wealth increase, the elasticity of supply, and consumption trends [3] - Categories with strong initial demand, driven by social status and identity needs, are expected to recover first, while categories with a high proportion of VIC customers and good supply conditions will show more sustained growth [3] - The fastest-growing segments in the luxury market from 2019 to 2025 include luxury cruises, private jets, high-end dining, personal luxury goods, luxury hotels, and high-end home goods [3] Group 3: Recommended Investment Targets - The report recommends focusing on luxury jewelry and leather goods, high-end domestic beauty products, and high-end outdoor sports [4] - Specific companies to watch include gold and jewelry brands like Lao Pu Gold and Chow Tai Fook, beauty brands like Mao Ge Ping, and sportswear brands like Anta Sports [4] - Other areas of interest include high-end commercial real estate, high-end residential real estate, gaming, private aviation, high-end tourism and dining, and premium liquor [4]

Core Insights - The approval of the botulinum toxin product by Aimeike enhances the company's aesthetic medicine product line, filling a gap in its offerings [1] - The combination of this new product with existing offerings allows the company to provide more comprehensive solutions to customers, thereby strengthening its core competitiveness [1] - The aesthetic medicine consumption penetration rate still has significant room for growth, indicating potential for future expansion [1] Product Development - Aimeike has several products in development, including those for weight management and submental fat, which will further enrich its aesthetic medicine product pipeline upon launch [1] - The company is investing in self-research to create new product lines while also pursuing external acquisitions to enhance its product offerings [1] Financial Projections - The forecast for the company's net profit attributable to shareholders for 2025-2027 is set at 1.564 billion, 1.794 billion, and 2.099 billion yuan, respectively [1] - Corresponding price-to-earnings ratios (PE) are projected to be 28.2, 24.6, and 21 times for the same period [1] - The company maintains an "outperform the market" rating based on these projections [1]

Group 1 - The report maintains a positive outlook on the beauty and personal care industry, highlighting the ongoing trend of domestic substitution and the emergence of high-quality domestic brands [1][5] - The beauty and personal care sector is expected to continue its growth trajectory, driven by strong brand marketing, product matrix, channel strategies, and management strategies [5][27] - The report identifies key investment opportunities in leading domestic brands such as Mao Ge Ping, Marubi, Proya, and RuYuchen, which are expected to maintain strong growth due to their competitive advantages [5][27] Group 2 - In 2025, the beauty and personal care sector showed stable revenue performance, with a slight increase in profit growth compared to revenue growth [17][22] - The overall performance of the beauty sector in 2025 was moderate, with a year-on-year revenue increase of 3.1% and a net profit increase of 5.0% [17][22] - The cosmetics market in 2025 experienced a steady retail growth rate, with a year-on-year increase of 4.8% in retail sales for cosmetics in China [22][27] Group 3 - The report notes a significant shift in consumer preferences towards efficacy-driven skincare products, with a growing focus on product ingredients and effectiveness [53][57] - The luxury segment of the beauty market is experiencing robust growth, particularly during promotional events, with high-end brands leading the sales increase [63][64] - The report highlights the transformation of sales channels, with Tmall focusing on high-end beauty products while Douyin showcases the rise of domestic brands [30][28] Group 4 - The medical aesthetics market is projected to maintain a compound annual growth rate (CAGR) of around 10% from 2025 to 2028, despite a slowdown in overall growth [31][38] - High-end consumers are increasingly seeking anti-aging treatments, with a notable rise in spending among this demographic [41][39] - The medical aesthetics industry is undergoing a consolidation phase, driven by stricter regulations and a slowdown in the growth of medical institutions [42][43] Group 5 - The personal care market is seeing strong growth in body care products, with a market share of 56% for body care and 44% for hair care [47][45] - The primary consumer demographic for personal care products is women aged 21-35, indicating a growing emphasis on personal care among younger consumers [48][49] - The report emphasizes the importance of product efficacy, with consumers increasingly prioritizing moisturizing, oil control, and beauty-enhancing benefits in personal care products [48][50]

Macro and Strategy - The global commodity market has entered a structural uptrend since the end of 2025, with industrial and precious metals leading the rise, driven by geopolitical uncertainties and a shift in global economic structure [7][8] - The demand for computing power is driving a divergence in commodity prices, with significant increases in copper and oil ratios indicating a new economic growth model centered around "computing power + electricity" [7][8] - The macroeconomic indicators show a recovery in China's economy, with December's manufacturing PMI returning above the expansion threshold, indicating effective policy support [10][11] Industry and Company - The AIDC power equipment sector is expected to benefit from the surge in data center construction, with major tech companies accelerating their investments in AI data centers [26][27] - The solid-state battery industry is experiencing rapid industrialization, with significant improvements in profitability expected for lithium battery companies in 2026 due to ongoing demand for energy storage [26][30] - The global energy storage demand is projected to reach 404 GWh in 2026, a year-on-year increase of 38%, driven by market demand and supportive government policies [28] - Wind power equipment manufacturers are expected to see improved profitability in 2026, with domestic installations projected to grow by 10%-20% [28] - The electric grid equipment sector is anticipated to experience increased demand, particularly with the acceleration of ultra-high voltage approvals and the introduction of new smart meter standards [29]

Group 1 - The core viewpoint presented by the chief economist of Dongwu Securities, Lu Zhe, is that consumer spending does not require stimulation as people will spend money when they have it, which is a reflection of human nature [1] - Lu Zhe emphasizes the importance of the middle and low-income groups in consumer structure, noting that while they are significant, their impact is a slow variable [1] - He critiques the current approach of universal cash vouchers for consumption stimulation, suggesting that it is not realistic in the current environment, and points out the issue of "eating old capital" in current product subsidies [1] Group 2 - In the context of the 2025 automotive market, Lu Zhe highlights that strong growth in car consumption was largely driven by consumer expectations of the end of subsidies, leading to a pull-forward of demand from 2027 [3] - He warns of the risks associated with this demand drop-off and suggests that the government should gradually reduce consumption subsidies in 2026 compared to 2025 to avoid future issues [3] - Lu Zhe identifies sustainable consumption in service sectors, such as medical beauty, fitness, domestic services, and pet economy, as a key area for future growth and subsidy effectiveness [3]