Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights the strong performance of the retail and beauty sectors, with a focus on the growth potential of domestic brands in the beauty industry [6][44] - The medical beauty segment is expected to see new growth drivers from innovative products, while the cosmetics sector is benefiting from the rise of domestic brands and consumer trends towards self-care [6][44] Summary by Sections 1. Market Review - The beauty and personal care index rose by 6.84% in August 2025, ranking 15th among all primary industries, underperforming the broader market which saw a 7.97% increase [12][15] - In the medical beauty sector, notable stock performances in August included Meili Tianyuan Medical Health (+32.4%), Kedi (+31.7%), and Yisi Health (+22.7%) [16] - In the cosmetics sector, leading performers were Jiaheng Home (+55.4%), Shuiyang Co. (+36.3%), and Ruoyu Chen (+29.0%) [20] 2. Medical Beauty - Jinbo Biological's "Recombinant Type III Humanized Collagen Freeze-Dried Fiber" received drug auxiliary material registration, marking a significant advancement in the medical field [26] - Longzi Co. plans to acquire 67.5% of Chongqing Milan Baiyu for 92.475 million yuan, with performance commitments ensuring net profits of at least 9.29 million yuan, 9.89 million yuan, and 11.83 million yuan from 2025 to 2027 [28] 3. Cosmetics - Proya plans to list in Hong Kong, potentially becoming the first A+H share beauty company, which would enhance its international business development [32] - Proya's investment in Huazhi Xiao will strengthen its position in the makeup sector, leveraging Huazhi Xiao's content operations and overseas channels [35] - The launch of the NAN beauty brand by Shangmei Co. represents a strategic move to enhance its presence in the mid-to-high-end market [40] 4. Investment Recommendations - The report recommends focusing on leading domestic beauty brands that are continuously evolving and capitalizing on high-growth segments [44] - Key recommendations include Shangmei Co., Maogeping, Proya, and Runben Co., with an emphasis on their strong market positions and growth potential [48]