From the beginning of 2024 to the present, demand has steadily recovered, and the year-on-year growth rate of cosmetic retail sales from January to May has accumulated to +5.4%. The SW Beauty and Care Index has fallen by about 7% from February 7 to July 5.

Head domestic beauty and personal care products have strong growth and continue to increase their market share.

1) In H1 2024, the growth rate of head domestic beauty and personal care brands exceeded that of international brands across the board.

2) International groups have slowed down in China, continuing to release market space, while domestic products actively undertake and optimize the competition pattern.

The three major international beauty companies have been unable to outperform the market in China in 2023, and have released market space in various dimensions, confirming the rise of domestic products.

According to the research report published by Swhy, with the rise in the "price-performance ratio" of domestic products, the rise of affordable consumption, the increase in market penetration of mass products, and the strong stickiness of large single products and diversified channel layout of head domestic products are favorable. The medical beauty industry will continue to benefit from the rich product supply on the supply side, and the maintenance of industry standardization for healthy development.

Medical beauty and cosmetic related companies:

Juzi Biology (02367): The recombinant collagen protein track is hot, which helps the company's brand and product category to develop rapidly. It is expected that the revenue growth rate in H1 2024 will be about 43%, and the profit growth rate will be nearly 33%.

Shangmei Stock (02145): According to Qingyan data, Hanshao's Douyin channel GMV in H1 2024 is nearly 345 billion, continuing to dominate the list, with the brand's momentum upward, and the platform's traffic overflow assists Tmall, and the subsidiary brand is vigorously cultivated. It is estimated that the revenue growth rate in H1 2024 will be nearly 140%, and the profit growth rate will exceed 300%.

Kaituo Pharmaceutical-B (09939): Kaituo Pharmaceutical-B announced that its cosmetics with KX-826 as the main component, which was independently developed and named as an international cosmetic ingredient, were officially launched for global sales in recent days. The first product is an external anti-hair loss liquid for androgenic alopecia. The group will further explore the efficacy of KX-826 in the fields of AGA and acne, actively enrich the product line, increase the promotion of target users, and meet the needs of users in different usage scenarios. The company believes that the launch and sales of the new product will bring stable income and cash flow to the group, which will benefit the group as a whole in the long run.

Haohai Biotec (06826): The company's three hyaluronic acid products that have been listed have differentiated positioning and complementary development in terms of price, characteristics, and efficacy. Among them, Haiwei is positioned as a popular entry-level HA filler for medical beauty institutions, which serves as a drainage product for medical beauty institutions; Jiaolan has added indications for lip use, bringing new growth space; Haimei is a linear cross-linking technology without particles, with vast market space; Bioxis's Cytosial series of products is being promoted for registration and marketing in China. The company's hyaluronic acid product combination, with technological advantages, cost-effectiveness advantages, and meeting refined needs, is expected to seize more market space. The combination of hyaluronic acid products drives revenue growth, and "Haomei" enters a rapid volume rise channel.