Investment Rating - The report indicates a positive investment outlook for the cosmetics and medical beauty sector, highlighting strong performance relative to the market [2][3]. Core Insights - The cosmetics and medical beauty sector has shown resilience, with the Shenwan Beauty Care Index rising by 2.9% from December 12 to December 19, 2025, outperforming the market [2][3]. - Lin Qingxuan, a leading high-end plant skincare brand, is preparing for its IPO in Hong Kong, with a focus on its core product, camellia oil, which has sold over 30 million bottles [2][6]. - Minooxidil products from Mandi International dominate the hair growth market, with a market share of approximately 57% in the hair loss treatment sector [7][10]. Summary by Sections Industry Performance - The Shenwan Cosmetics Index increased by 2.2%, outperforming the Shenwan A Index by 2.4 percentage points, while the Shenwan Personal Care Index rose by 4.4%, exceeding the Shenwan A Index by 4.6 percentage points [2][3]. - Top-performing stocks included Hongmian Co. (+16.2%), Jiaheng Jiahua (+11.4%), and Baiya Co. (+9.1%) [3]. Company Highlights - Lin Qingxuan's product matrix includes 188 SKUs, with camellia oil accounting for 37% of revenue in 2024, while face creams and masks contribute 15.7% and 12.2%, respectively [6]. - Mandi International's revenue is projected to grow from 982 million yuan in 2022 to approximately 1.455 billion yuan in 2024, with a CAGR of 21.7% [8]. - The company has maintained a leading position in the minoxidil market for ten consecutive years, with a market share of 71% in 2024 [10]. Market Trends - The Chinese consumer healthcare market is expected to grow from 9.313 billion yuan in 2018 to 16.420 billion yuan in 2024, with a CAGR of 9.9% [9]. - The hair health management market is projected to grow at a CAGR of 17.7% from 2018 to 2024, while the weight management drug market is expected to grow at 20.7% during the same period [9]. E-commerce Insights - The report highlights significant growth in online sales channels, with Lin Qingxuan's online revenue increasing by 81.1%, contributing to 59.1% of total revenue [6]. - The overall cosmetics retail sales in China for the first 11 months of 2025 reached 428.5 billion yuan, with a year-on-year growth of 4.8% [14][15]. Strategic Developments - Proya has invested in the cosmetic raw material company Huaguan Biotechnology to enhance its capabilities in the whitening market, which is projected to exceed 150 billion yuan by 2027 [16][19]. - The report emphasizes the importance of product innovation and market positioning for domestic brands, which are gaining market share against international competitors [22].

Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry, highlighting strong performance in the sector [2]. Core Insights - The cosmetics and medical beauty sector outperformed the market, with the Shenwan Beauty Care Index rising by 2.9% from December 12 to December 19, 2025, surpassing the Shenwan A Index by 2.4 percentage points [3][4]. - Lin Qingxuan, a leading high-end plant skincare brand, is set to launch its IPO in Hong Kong, with a focus on its core product, camellia oil, which has sold over 30 million bottles [9]. - Minooxidil products from Mandi International dominate the hair growth market, with a market share of approximately 57% in the hair loss treatment sector [10][13]. - Proya has invested in a cosmetic raw material company, Huaguan Biotechnology, to enhance its whitening product offerings, targeting a market expected to exceed 150 billion yuan by 2027 [19][22]. Summary by Sections Industry Performance - The cosmetics and medical beauty sector showed strong performance, with the Shenwan Beauty Care Index increasing by 2.9% during the specified period, outperforming the Shenwan A Index [3][4]. Company Highlights - Lin Qingxuan's product matrix includes 188 SKUs, with camellia oil contributing 37% to revenue in 2024, while offline channels are expected to generate 40.9% of revenue [9]. - Mandi International's revenue grew from 982 million yuan in 2022 to approximately 1.455 billion yuan in 2024, with a CAGR of 21.7% [11]. - Proya's strategic investment in Huaguan Biotechnology aims to capture a significant share of the whitening market, with new product launches and patent approvals [19][22]. Market Trends - The Chinese consumer healthcare market is projected to grow from 931.3 billion yuan in 2018 to 1.642 trillion yuan in 2024, driven by increased health awareness and digital transformation [12]. - The hair health management market is expected to grow at a CAGR of 17.7% from 2018 to 2024, indicating strong demand for hair loss treatments [12][13]. - The overall retail sales of cosmetics in China reached 428.5 billion yuan in the first eleven months of 2025, with a year-on-year growth of 4.8% [17][18].

Investment Rating - The report indicates a weak performance in the cosmetics and medical beauty sector, with the Shenwan Beauty Care Index declining by 1.6% from December 5 to December 12, 2025, underperforming the market [3][4]. Core Insights - The cosmetics sector faced pressure in November, with overall GMV in the Taobao system showing weakness due to the pre-promotion of the Double 11 sales event and the rise of Douyin as a sales channel. Brands like Han Shu and Lin Qingxuan maintained stable GMV, while others like Feicui continued to grow significantly [3][9]. - The collagen medical beauty segment is expanding, with two new animal-derived collagen products approved for market entry, expected to drive growth in this area [3][9]. - The report highlights the leading market share of Minoxidil products from Mandi International in the hair loss treatment market, with a steady revenue growth from 982 million yuan in 2022 to approximately 1.455 billion yuan in 2024, reflecting a CAGR of 21.7% from 2022 to 2024 [10][11]. - L'Oréal's acquisition of an additional 10% stake in Galderma, raising its total ownership to 20%, signifies a strategic shift towards the medical beauty and skin health sectors, aiming to adapt to the slowing growth in the Chinese beauty market [3][18]. Summary by Sections Industry Performance - The Shenwan Beauty Care Index and its sub-indices for cosmetics and personal care products have shown declines of 1.2% and 1.7%, respectively, indicating underperformance compared to the Shenwan A Index [4][6]. Key Market Developments - The overall GMV for cosmetics in November was weak, influenced by earlier sales spikes in October and competition from Douyin [9]. - The approval of new collagen products is expected to enhance the supply side of the medical beauty market, with projections for continued expansion in 2026 [9][22]. Company Highlights - Mandi International has maintained a dominant position in the Minoxidil market, with its products accounting for approximately 57% and 71% of the market share in the hair loss treatment and Minoxidil categories, respectively, as of 2024 [11][13]. - The report notes that the Chinese consumer healthcare market is projected to grow from 931.3 billion yuan in 2018 to 16.42 trillion yuan by 2024, with significant growth in hair health and skin health segments [12][13].

Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry, despite recent underperformance compared to the market [3][4]. Core Insights - The cosmetics and medical beauty sector has shown weaker performance, with the Shenwan Beauty Care Index declining by 1.6% from December 5 to December 12, 2025, underperforming the market [4][5]. - The report highlights that the November sales in the cosmetics sector were impacted by pre-Double 11 promotions and the rise of Douyin as a sales channel, leading to a weaker overall GMV [4][10]. - The collagen medical beauty segment is expanding, with two new animal-sourced collagen products approved for market, indicating growth potential in this area [4][10]. - The report emphasizes the strong market position of Mandi International in the minoxidil hair growth market, with a revenue increase from 982 million yuan in 2022 to approximately 1.455 billion yuan in 2024, reflecting a CAGR of 21.7% [4][11][12]. - L'Oréal's recent acquisition of an additional 10% stake in Galderma signifies a strategic shift towards medical aesthetics and skin health, aiming to adapt to the slowing growth in the Chinese beauty market [4][21]. Summary by Sections Industry Performance - The Shenwan Beauty Care Index decreased by 1.6%, with the Shenwan Cosmetics Index down by 1.2% and the Shenwan Personal Care Index down by 1.7% during the specified period [4][5]. - Notable stock performances included Water Sheep Co. (+5.9%) and Jinsong New Materials (+4.3%), while Hongmian Co. (-10.6%) and Juzhi Biological (-8.4%) faced significant declines [7]. Market Trends - The overall GMV for cosmetics in November was weak, influenced by the earlier sales surge in October and the emergence of Douyin as a competitive sales platform [4][10]. - The report notes that brands like Han Shu and Lin Qingxuan maintained stable GMV, while brands like Feicui continued to experience high growth [4][10]. Company Highlights - Mandi International has established a leading position in the minoxidil market, with a market share of approximately 57% in the hair loss treatment sector and 71% in the minoxidil product market as of 2024 [4][15]. - The company has shown consistent revenue growth, with a net profit increase from 2022 to the first half of 2025, indicating a robust business model [4][12][15]. Investment Recommendations - The report recommends focusing on companies with strong product lines and high profitability in the medical beauty sector, such as Ai Meike, while also suggesting attention to companies like Langzi Co. and Ru Yi Chen [4][10].

Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry, despite recent underperformance compared to the market [4][5]. Core Insights - The cosmetics and medical beauty sector has shown weaker performance, with the Shenwan Beauty Care Index declining by 2.0% from November 28 to December 5, 2025, underperforming the market [4][5]. - Douyin's performance in November met expectations, with domestic brands preparing actively for the upcoming Double 12 sales event, indicating a strong competitive landscape for domestic products [4][10]. - The report highlights the leading market share of Minoxidil products, particularly from Mandi International, which has established itself as a top brand in the hair growth sector [11][12]. Summary by Sections Industry Performance - The Shenwan Cosmetics Index fell by 2.2%, while the Shenwan Personal Care Index also dropped by 2.0%, both underperforming against the Shenwan A Index [4][5]. - The top-performing stocks in the sector included Juzhibio (+5.9%) and Hongmian Co. (+3.5%), while the worst performers were Kelao Co. (-7.6%) and Baiya Co. (-4.8%) [6]. Key Market Developments - Mandi International has dominated the Minoxidil market, achieving a revenue growth from 982 million yuan in 2022 to approximately 1.455 billion yuan in 2024, with a CAGR of 21.7% [12][13]. - The company has maintained a leading position in the market for ten consecutive years, with a market share of about 57% in the hair loss treatment sector and 71% in the Minoxidil product market as of 2024 [12][14]. E-commerce Insights - In November 2025, Douyin's domestic brand GMV showed significant growth, with brands like Han Shu and New Page experiencing double-digit increases [15][18]. - The overall retail sales of cosmetics in October 2025 grew by 9.6%, driven by the Double 11 shopping festival, indicating a robust recovery in consumer spending [18][20]. Company Announcements - Lin Qingxuan updated its IPO prospectus for the Hong Kong market, reporting a revenue of 1.052 billion yuan in the first half of 2025, a year-on-year increase of 98.3% [22][19]. - The company plans to expand its research and development team and explore international markets in Southeast Asia [22][19]. Market Trends - The Chinese consumer healthcare market is projected to grow from 9.313 billion yuan in 2018 to 16.420 billion yuan in 2024, with a CAGR of 9.9% [13]. - The report emphasizes the increasing market share of domestic brands in the skincare sector, with a notable rise in the competitive landscape against international brands [24].