Core Viewpoint - The National Medical Products Administration has issued opinions to deepen cosmetic regulation reform and promote high-quality industry development, emphasizing increased support for the industry and fostering a favorable innovation environment [1] Industry Summary - The cosmetic industry is expected to face intensified competition starting in 2025, with challenges such as weak overall demand, diminishing traffic dividends, and high costs. However, some companies and brands are achieving high growth by leveraging their differentiated advantages [1] - The rise of the "beauty economy" and self-care trends has led consumers to purchase functional skincare products, domestic trendy cosmetics, and home fragrances for emotional healing, indicating investment opportunities in the beauty sector driven by "emotional consumption" [1] Company Summary - Companies focusing on high-growth segments within the beauty industry, particularly those that continuously iterate their capabilities, are recommended for investment as domestic brands gain momentum [1] - The high-end beauty market is becoming increasingly scarce, with the potential for domestic high-end beauty brands to rise [1] - The personal care and household cleaning sectors are flourishing, driven by both rigid demand and upgraded experiences [1]

Group 1 - The stock of Mao Geping (01318) has increased by over 6%, currently up 6.51% at HKD 96.5, with a trading volume of HKD 69.51 million [1] - According to a recent report by Shenwan Hongyuan, the Double 11 promotion in 2025 lasted about a month and concluded around November 11, with expectations of steady growth for Mao Geping on both Douyin and Tmall platforms, as evidenced by the sell-out on the first day of sales with Li Jiaqi on Tmall [1] - The report highlights that Mao Geping's performance in October has laid a solid foundation for Q4 results amidst the backdrop of the September Double 11 pre-sale and multi-platform competition [1] Group 2 - Open Source Securities emphasizes that domestic brands are leveraging cultural foundations to capture "emotional dividends" and increase market share [1] - In the context of evolving consumer mindsets and product innovation, the focus is on two core dimensions: emotional value and safety component innovation, with attention to opportunities in niche markets such as "regional + technology" narrative upgrades, sensitive skin anti-aging, domestic trend cosmetics, and olfactory economy [1]

Group 1: Food and Beverage - The investment suggestion emphasizes structural differentiation and growth potential, with a focus on new consumption and high growth in consumer goods, while the liquor sector is in a bottoming phase, highlighting its value for allocation [2][3] - The liquor industry is experiencing increased differentiation and rationality, with the industry still seeking a bottom in Q2 2025, and the head companies showing resilience during the off-season [2] - Beer is expected to recover as the peak season approaches, while the beverage sector is in a phase of releasing single product potential [3] Group 2: Cosmetics - The investment recommendation suggests increasing holdings in personal care and beauty sectors, focusing on companies benefiting from product innovation and new channel opportunities [6] - The demand for cosmetics remains stable, with domestic brands gaining market share, particularly in skincare and makeup categories [6] - Trends indicate accelerated product innovation and emotional consumption, with a focus on cost-effective products benefiting from supply-demand dynamics [6] Group 3: Education and Consumer Services - The high school education sector is projected to have a stable demand for the next 7-8 years, supported by policy initiatives aimed at expanding education [12] - Emotional and experiential consumption is accelerating, with traditional demands being met by new supply, particularly in the IP toy sector [12] - The tea and coffee sectors are undergoing product, channel, and technological iterations, indicating structural growth opportunities [12] Group 4: Home Appliances - The home appliance sector is witnessing a recovery led by major brands, with a focus on price competition and market consolidation [17] - New consumption trends are emerging, with high aesthetic product designs and AI integration driving innovation in the sector [17] - Investment suggestions highlight opportunities in both domestic and international markets for leading brands [17] Group 5: Agriculture and Animal Husbandry - The agricultural sector maintains a "buy" rating, with slow growth expected in livestock output and a recovery in the animal health feed sector [29] - The pet food market is experiencing robust growth, driven by domestic brands gaining market competitiveness [29] - The planting sector is expected to see rising grain prices due to reduced import volumes, with core seed varieties becoming increasingly important [30] Group 6: Internet and AI - The investment outlook for the internet sector remains positive, particularly for technology stocks, with a focus on AI-driven growth [34] - The AI narrative is expected to enhance the value of social networks, with a strong emphasis on user engagement and ecosystem development [59] - The evolution of AI capabilities is anticipated to create new demand and enhance the social network's value proposition [59] Group 7: Non-Banking Financials - The non-banking financial sector is undergoing significant transformation, with a focus on wealth management and asset management business models [73] - The recommendation is to favor leading comprehensive brokerages that demonstrate balanced business structures and strong professional capabilities [73] - The insurance sector is expected to see stable growth in new business value, with an emphasis on improving asset allocation [76] Group 8: Banking - The banking sector is projected to face revenue pressure but maintain positive net profit growth, with a stable policy environment supporting sustainable operations [79] - The expectation of increased long-term capital inflow into the banking sector is driven by regulatory changes and market dynamics [80] - Investment strategies suggest focusing on high-growth regional banks and those showing signs of loan recovery [81]

Market Overview - The A-share market showed mixed performance on May 13, with the Shanghai Composite Index rising by 0.17%, while the Shenzhen Component and ChiNext Index fell by 0.13% and 0.12% respectively [1] Active Sectors - The port and shipping sector, closely related to foreign trade, saw significant gains, with stocks like Ningbo Shipping and Ningbo Ocean reaching their daily limit [2] - The banking sector experienced a positive trend, with all bank stocks rising, including historical highs for Shanghai Pudong Development Bank, Shanghai Bank, Chengdu Bank, and Jiangsu Bank [2] - The photovoltaic industry chain, including photovoltaic equipment, BC batteries, and POE films, also saw an increase. Guojin Securities forecasts a sustained growth rate of 10% to 15% for new photovoltaic installations by 2025, with diverse regional distribution expected to drive demand [3] - The consumer sector, particularly in beauty and personal care, led the gains, with stocks like Jinbo Biological and Runben Co. reaching historical highs. Analysts noted the rise of the "beauty economy" and self-care trends driving consumer purchases in skincare and cosmetics [4] - The chemical sector, including epoxy propane and dyes, experienced an uptick, with popular stocks like Zhongyida and Hongqiang Co. hitting their daily limit [5] - The pharmaceutical sector, particularly in medical services and gene sequencing, also saw growth. OpenAI announced a new testing evaluation set for healthcare AI systems, which may enhance capabilities in the medical field [6]