Citigroup has released a research report that first gave a "buy" rating to GenScript BioTech (02367), citing that it will be a major beneficiary of the structural trend of "skin care medicalization." It is expected that the net income will increase by 35% in the first half of 2024, and the compound annual growth rate from 2023 to 2026 will reach 26%.
The report pointed out that although the overall demand for cosmetics has slowed down, given the growing demand from young consumers, it is expected that skin beauty and care products will continue to thrive. Among the Chinese cosmetic companies that the bank is bullish on are Proya Cosmetics (603605.SH), GenScript BioTech, and Beutii (300975.SZ).