Investment Rating - The report maintains a "Positive" investment rating for the beauty industry [3] Core Insights - The beauty industry is experiencing stable growth, with a notable performance in the collagen restructuring segment [1][5] - The overall revenue growth for the cosmetics sector has shown slight improvement, with a year-on-year increase of 3.1% in Q1 2025, recovering from previous negative growth [12][19] - The average revenue growth for the cosmetics industry is projected to be 8% in 2024, followed by a decline to -5% in Q1 2025, indicating a trend of increasing differentiation among brands [19] Summary by Sections Cosmetics - The cosmetics industry has shown a steady growth rate, with Q1 2025 marking a recovery from three consecutive quarters of negative growth [12] - Online sales channels, particularly Tmall and Douyin, have seen significant growth, with a combined increase of 17% in Q1 2025 [12] - The average revenue growth for brands has been more resilient compared to upstream and downstream segments, with mid-sized brands like Marubi and Runben achieving good growth despite a generally weak market [19] Medical Beauty - The medical beauty sector has seen a convergence in revenue, while the collagen restructuring segment continues to maintain high growth rates [1][5] Revenue and Profitability - The average revenue growth for the cosmetics industry has been declining, with a notable differentiation in performance among brands [19] - The average gross margin for the brand segment has slightly increased, attributed to improved business structure and price control measures [20] Product Innovation - Brands are focusing on upgrading main product lines and expanding functional categories, particularly in sun protection and whitening, with increased competition expected [25] - New product launches include significant upgrades in major brands like Proya and Bethany, focusing on whitening and sun protection [24][25] Expenses and Profit Margins - The average sales expense ratio for brands has increased, reflecting heightened competition and rising platform costs [26] - The gross profit margin has generally decreased across the industry, although leading brands like Proya have managed to improve their margins through effective cost management [26][35] R&D and Management Expenses - There is a trend of increasing R&D investment among leading brands, with a shift towards foundational research [45] - Management expense ratios have shown a divergence, with leading companies optimizing their expenses while others have seen increases due to business adjustments [45]

E-commerce and New Retail - Douyin E-commerce has provided over 8 billion yuan in subsidies to merchants in the first four months of this year, including over 3 billion yuan in January and February, 2 billion yuan in March, and 2.5 billion yuan in April, reflecting its strategy to enhance merchant retention and loyalty amid fierce competition [1] - Alibaba's Q4 FY2025 report shows revenue of 236.45 billion yuan, a 7% year-on-year increase, with cloud revenue growing by 18% driven by strong AI demand, marking the seventh consecutive quarter of triple-digit growth in AI-related product revenue [2] - Tencent has established an e-commerce product department to explore new transaction models within WeChat, aiming to leverage its vast user base to enhance its e-commerce capabilities and address its lag behind competitors like Alibaba and JD [3] - JD Group reported Q1 2025 revenue of 301.1 billion yuan, a 15.8% year-on-year increase, with active user growth exceeding 20% for six consecutive quarters, driven by investments in supply chain and logistics [4] - The "618" shopping festival has commenced, with JD and Taobao Tmall launching promotional activities that integrate low prices, services, and entertainment to attract and retain customers [6] Life Services - New Oxygen reported a 6.6% year-on-year decline in Q1 2025 revenue to 297 million yuan, with net losses widening to 331 million yuan, although its light medical beauty chain business saw a significant revenue increase of 551.4% to 98.88 million yuan [7] Logistics and Supply Chain - JD Logistics reported Q1 revenue of 46.97 billion yuan, an 11.5% year-on-year increase, with a profit of 751.5 million yuan, reflecting strong service quality and operational efficiency [10] Innovation and Investment - Self-variable Robotics has completed a series A financing round of several hundred million yuan, led by Meituan, to accelerate the development of its intelligent robotics and models, enhancing Meituan's automation capabilities in delivery and retail [12]

Group 1 - The core viewpoint of the articles highlights the significant growth potential in the consumer healthcare sector in China, driven by increasing health awareness among consumers and the emergence of innovative business models [1][3] - The number of registered medical beauty companies in China has surged, with over 16,000 existing companies and more than 60% established in the last three years, indicating a trend of traditional medical companies diversifying into consumer healthcare [2][3] - Companies like Kelun Pharmaceutical are pivoting towards the health sector, with their medical beauty business starting to generate revenue despite varying contributions across different firms [6][7] Group 2 - The medical beauty sector is becoming a new growth point for traditional medical enterprises, with many companies forming new entities or acquiring existing ones to enter this market [2][3] - The integration of artificial intelligence (AI) in consumer healthcare is expected to create new growth opportunities, enhancing personalized services and improving operational efficiency [3][4] - The financial performance of companies in the medical beauty sector is showing promising trends, with some reporting significant revenue growth, such as a 66.4% increase in medical beauty revenue for a specific company [6][8] Group 3 - The demand for regenerative medicine is rapidly increasing, with a notable rise in interest for stem cell therapies, although the current application in medical beauty does not fully meet the technical standards of regenerative medicine [5][6] - Regulatory frameworks are evolving to support the commercialization of cell therapies, with recent guidelines issued by the National Medical Products Administration to clarify the development and clinical trial processes [8]

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.

商贸零售 2025 年 05 月 18 日 投资评级：看好（维持） 行业走势图 数据来源：聚源 -29% -14% 0% 14% 29% 43% 2024-05 2024-09 2025-01 商贸零售 沪深300 相关研究报告 《关注零售行业中期投资策略：深挖 情 绪 消 费 景 气 赛 道 — 行 业 周 报 》 -2025.5.11 《悦享生活，深挖情绪消费景气赛道 —2025 年零售行业中期投资策略》 -2025.5.7 《零售企业经营持续承压，关注高景 气优质公司—行业周报》-2025.5.5 618 大促拉开帷幕，关注国货美妆表现 ——行业周报 | 黄泽鹏（分析师） | 陈思（联系人） | | --- | --- | | huangzepeng@kysec.cn | chensi@kysec.cn | | 证书编号：S0790519110001 | 证书编号：S0790124070031 | chensi@kysec.cn 证书编号：S0790124070031 投资主线三（化妆品）：关注具备差异化且能力持续迭代的优质国货美妆品牌， 重点推荐毛戈平、珀莱雅、上美股份、巨子生物、润本股份、丸美生物等 ...

Core Viewpoint - The article discusses the rebuttal by Huaxi Biological regarding the "outdated hyaluronic acid theory," claiming it is a narrative constructed by "restless capital" to divert attention from the necessary evolution of China's industry [1][4]. Group 1: Industry Context - Huaxi Biological argues that the rise of the "outdated hyaluronic acid theory" is a result of misleading narratives that have emerged in recent years, portraying hyaluronic acid as inferior to other substances [3][4]. - The company highlights that since 2022, the capital market has shifted its focus to the concept of recombinant collagen, which has been promoted through misleading comparative studies against the hyaluronic acid industry [3][4]. Group 2: Company Performance - Huaxi Biological has experienced a significant decline in net profit and stock price, with its market value dropping from over 140 billion yuan in 2021 to just 24.3 billion yuan currently [7]. - In contrast, competitors like Juzhi Biological, which went public in Hong Kong in 2022, have seen both their performance and stock price rise, with a current market value of 90.9 billion HKD [8]. - Another competitor, Jinbo Biological, listed on the Beijing Stock Exchange, has also seen its stock price double in recent months, reaching a market value of 42.5 billion yuan [9].

Core Insights - The healthcare industry is increasingly shifting towards consumer health and wellness sectors, with companies like Kelun Pharmaceutical entering the market to diversify their revenue streams amid declining traditional business performance [1][6][7] - The demand for stem cell therapy is rapidly growing in China, with some treatments costing up to 1 million yuan, leading to significant profits for service providers [1][3] - The aesthetic medicine sector is witnessing a surge in new registrations, with nearly 10,000 new medical beauty-related companies registered in early 2023, indicating a trend of traditional pharmaceutical companies pivoting to this area for survival [3][4] Company Strategies - Kelun Pharmaceutical's chairman has publicly stated the company's commitment to the health and wellness sector, highlighting the need for diversification due to intense competition in traditional medical fields [1][6] - Many companies are forming new entities or acquiring existing firms to enter the aesthetic medicine market, leveraging their traditional business strengths in production or marketing [3][4] - Companies like Chuaning Bio, previously focused on antibiotic intermediates, are now developing anti-aging products, although their contribution to revenue remains minimal at this stage [7] Financial Performance - Kelun Pharmaceutical reported a 30% decline in revenue and a 43% drop in net profit in Q1 2025, prompting a focus on anti-aging products [6] - Four环医药's aesthetic medicine segment generated approximately 323 million yuan in revenue in the first half of 2024, a 66.4% increase year-on-year, contributing significantly to the company's overall income [8] - Companies in the biological materials sector, such as Guanhao Bio, are also seeing growth in cell technology services, with related revenues exceeding 10% of total income [8] Regulatory Environment - Recent regulatory guidelines from the National Medical Products Administration are clarifying the direction for the commercialization of cell therapies, emphasizing the need for a robust management system to ensure safety [9] - The aesthetic medicine field is currently seen as a simpler entry point for regenerative medicine technologies, although many practices may not meet the rigorous standards of true regenerative medicine [5][9]

Core Viewpoint - *ST Suwu is facing scrutiny due to disclosure violations but is experiencing strong growth in its medical aesthetics business, which is expected to drive a turnaround in overall performance [1][2][3] Group 1: Financial Performance - In 2024, *ST Suwu achieved revenue of 1.599 billion yuan and gross profit of 773 million yuan, marking a year-on-year increase of 229 million yuan, or 42.12% [1] - The net profit attributable to shareholders reached 70.48 million yuan, a significant year-on-year growth of 197.97% [1] - In Q1 2025, the medical aesthetics segment generated revenue of 113 million yuan with a gross profit of 92.57 million yuan, while the pharmaceutical segment saw a revenue decline of 218.44 million yuan [2] Group 2: Business Strategy and Market Position - *ST Suwu has shifted its strategic focus from pharmaceutical business to medical aesthetics since early 2021, which has proven to be a forward-looking decision that opened new growth avenues [2] - The launch of the "Tongyan Needle" in January 2024 marked *ST Suwu's first entry into the medical aesthetics market, quickly gaining traction despite pricing controversies [2][3] - The company has established strong marketing efforts across various well-known medical aesthetics brands, enhancing its competitive position in the market [3]

Core Viewpoint - So-Young International Inc. reported a decline in total revenue for Q1 2025, with a significant growth in its light medical beauty chain business, indicating a strategic shift amidst increasing competition in the medical beauty industry [1][4]. Financial Performance - Total revenue for Q1 2025 was RMB 297 million, a year-on-year decrease of 6.6% [1]. - Net loss expanded from RMB 21.2 million in the same period last year to RMB 33.1 million [1]. - Revenue from the light medical beauty chain business surged by 551.4% to RMB 98.8 million, marking a record high for a single quarter [1]. Online Business Challenges - Revenue from information, reservation services, and others fell by 34.1% to RMB 143 million, previously RMB 217 million in Q1 2024 [4]. - Revenue from medical product sales and maintenance services decreased by 35.7% to RMB 55.6 million [4]. - Combined revenue from online services accounted for less than 67% of total revenue, down from 94% in the same period last year [4]. Industry Competition - The medical beauty industry is experiencing intensified competition, with major players like Alibaba Health and Meituan expanding their presence [1][4]. - New platforms such as Douyin and Xiaohongshu are reshaping traffic acquisition through live streaming and short videos, impacting traditional online models [5]. Strategic Initiatives - The company is focusing on vertical integration and business diversification to strengthen its competitive position [1]. - New-Young has launched its light medical beauty chain brand "So-Young Youth Clinic" and aims to improve service efficiency and reduce costs through centralized procurement [7][8]. - As of March 31, 2025, So-Young operates 23 medical beauty centers across nine major cities, with 18 centers achieving positive monthly cash flow [8]. Future Outlook - For Q2 2025, the company anticipates medical treatment service revenue to reach between RMB 120 million and RMB 140 million, representing a year-on-year growth of 337% to 410% [8]. - The company plans to continue expanding its offline medical beauty center business and improve operational efficiency [8].

Group 1 - The core viewpoint of the article highlights that New Oxygen Technology (SY.US) reported a revenue decline in Q1 2025, but still exceeded market expectations [1] - In Q1 2025, the company's revenue reached 40.97 million USD, a decrease of 6.6% year-on-year, while the GAAP diluted loss per share was 0.04 USD, slightly better than the market average expectation of a loss of 0.05 USD [1] - The decline in revenue was primarily due to a reduction in the number of medical beauty institutions on the subscription platform [1] Group 2 - The total transaction amount for medical beauty treatments facilitated by the platform in Q1 was 30.32 million RMB, down from 36.71 million RMB in the same period of 2024 [1] - The number of verified paid visits exceeded 45,500, showing a nearly ninefold increase compared to approximately 4,600 visits in the same period of 2024 [1] - The number of active users as of March 31, 2025, was over 75,700, compared to about 8,000 in the same period of 2024 [1] Group 3 - As of March 31, 2025, New Oxygen operates 23 medical beauty centers in nine major cities, with 18 centers achieving positive monthly operating cash flow [2] - For Q2 2025, the company expects medical beauty service revenue to be between 120 million RMB (approximately 16.5 million USD) and 140 million RMB (approximately 19.3 million USD), representing a year-on-year growth of 337.3% to 410.1% compared to the same period in 2024 [2]