Investment Rating - The report maintains a "Positive" investment rating for international cosmetics and medical beauty companies [2]. Core Insights - The global beauty market is projected to grow at a rate of 4.5% in 2024, down from 8% in 2023, indicating a slowdown in growth [3][12]. - The European market outperformed the global average with a year-on-year growth of 7.5%, while the North Asia market saw a decline of 2% [3][12]. - Major international brands are facing challenges in the Chinese market, with a significant reliance on tourism retail channels, which have been underperforming [3][19]. - L'Oréal reported a 3% recovery in its Chinese market in Q2, while Estee Lauder and Shiseido continue to struggle with declining revenues [3][19]. Summary by Sections 1. Global Beauty Market Trends - The beauty market has shown a stable trend in 2024, with regional disparities in performance. The European market is robust, while North Asia is lagging [3][12]. - The overall performance of international groups is declining, with L'Oréal's growth slowing down [3][15]. 2. L'Oréal Performance - L'Oréal achieved a 3% growth in its Chinese market in Q2, despite ongoing challenges in tourism retail [3][19]. - The company's overall revenue growth for 25H1 was 1.6%, with a notable increase in operating profit by 3.1% [26][29]. 3. Estee Lauder Performance - Estee Lauder's revenue declined by 10.9% in 25H1, with the company facing significant operational challenges [3][44]. - The company has been undergoing a strategic restructuring to address its declining performance [44][48]. 4. Shiseido Performance - Shiseido's revenue fell by 7.6% in 25H1, with a focus on its ELIXIR brand for growth [3][44]. - The company is experiencing a K-shaped recovery, with some brands performing well while others struggle [3][44]. 5. Investment Recommendations - The report suggests focusing on companies with strong growth potential, such as Up Beauty and Maogeping, as well as established brands like Proya and Marubi [4][5]. - In the medical beauty sector, recommendations include Aimeike and Langzi [4].

Investment Rating - The report maintains a "Positive" outlook on international cosmetics and medical beauty companies for Q1 2025 [2]. Core Insights - The global beauty market is projected to grow at a rate of 4.5% in 2024, a decline from the 8% growth seen in 2023, with significant regional disparities [3][12]. - The North Asia market, particularly China, has shown signs of improvement, but overall performance remains subdued, with North America exhibiting signs of fatigue [3][12]. - International beauty groups are still grappling with performance declines or slower growth, which may become the new normal due to various factors including the pandemic and macroeconomic conditions [3][15]. - Companies are adopting localization strategies and investing in local brands to maintain market share amid fierce competition from domestic brands [3][19]. Summary by Sections 1. Global Beauty Market Trends - The beauty market continues a stable trend from 2024, with Europe outperforming other regions at a 7.5% growth, while North Asia has seen a 2% decline [3][12]. - The international beauty groups are facing a challenging environment with performance fluctuations and strategic adjustments [15]. 2. L'Oréal Performance - L'Oréal's Q1 2025 revenue growth slowed to 4.4%, with the Chinese market remaining flat and tourism retail channels under pressure [3][27]. - The company is actively investing in local brands and expanding its product matrix to compete with domestic brands [3][27]. 3. Estée Lauder Performance - Estée Lauder reported a 9.9% decline in revenue for Q1 2025, continuing a trend of three consecutive quarters of revenue decline [3][51]. - The company is undergoing strategic reforms to address issues related to brand and product positioning [47][51]. 4. Shiseido Performance - Shiseido's revenue decreased by 8.5% in Q1 2025, with its main brand struggling while the ELIXIR brand showed growth [3][18]. - The company is focusing on strategic product launches and price adjustments to enhance profitability [3][27]. 5. Investment Recommendations - Recommended companies include Up Beauty and Proya for their strong brand matrices and growth potential, as well as Marubi for leveraging Douyin traffic [4]. - In the medical beauty sector, companies with strong R&D capabilities and broad product pipelines, such as Aimeike, are highlighted as key investment opportunities [4].