Recently, the face value economy has become a very bright part of the A-share. Some voices suggest that the golden age of medical beauty is coming! Medical beauty companies have become the new favorite of many beauty lovers on the one hand, and the new explosive point for investment on the other. We invited Shen Rui, a researcher of consumer industry at Poyin AXA, to give an in-depth analysis of the investment in medical beauty industry.
Q: What kind of stage is the face value market of medical beauty in now after a period of explosion? Has it entered the end, or will there be a follow-up opportunity?
A: So far this year, the market as a whole presents a structural bull market. The market for the boom industry, including individual stocks, downplaying its short-term valuation, more focused on a long-term space. Therefore, high-growth industries, such as medical beauty, will be sought after by the capital, the plate and the valuation of individual stocks in the phase of rapid expansion. The medical beauty industry is still in the early stages of development, and there is still a lot of room for development. Medical beauty plate in this year’s subsequent trend is still inseparable from the overall market liquidity and risk appetite, if the market a phase of liquidity tightening, we believe that the market risk appetite will decline. At present, the plate is also in a state of high valuation, the subsequent does not rule out the possibility of adjustment.
Q: Is there a market-level reason for the explosion of the medical beauty industry?
A: First, the A-share market is expanding the number of subjects in the medical beauty industry, the upstream, midstream and downstream are different listed companies will participate in the process of medical beauty industry, making the overall heat of the sector has increased. Secondly, there is a great correlation with the overall economic level of the country and the improvement of the disposable income of the residents. After the disposable income of the residents is raised, people will spend more money on the face economy.
Q: We often compare the medical beauty industry with the cosmetics industry, are there any similarities between these two industries?
A: In fact, we think of medical beauty as skin care products, or because cosmetics are actually divided into color cosmetics and skin care products. For skin care products, girls do not know whether the effect will really be reflected in the medium and long term, more of a psychological effect, or in the workplace is the respect for each other. Medical beauty is something that allows consumers to see immediate results faster.
On another level, the cosmetic industry is actually a sales-driven industry, while medical aesthetics is more dependent on the skill and level of the doctors themselves.
Q: What is the development logic behind the industry chain of medical beauty industry?
A: The whole medical beauty industry can also be divided into upstream, midstream and downstream. Upstream is the production of raw materials, they sell the whole raw materials to the midstream companies that manufacture B-end products, midstream companies mainly do research and development, and then the raw materials are made into medical beauty products and injections and sold to downstream medical beauty institutions. This is the general business model of the medical beauty industry.
Q: From the perspective of investment, what kind of medical beauty companies have more development prospects?
A: At present, as the downstream development is still at a relatively early stage, the regulator has not yet issued some rules to regulate, and there are still some industry chaos arising in the downstream. After the national regulation, I think there is more room for investment in downstream institutions with better qualifications. In the current situation, the midstream organization is the direction I am more optimistic about, because the upstream raw material companies, the A-share market is generally unwilling to give a very high valuation, and its demand is relatively stable, it is difficult to appear explosive growth. The midstream product companies, on the one hand, their products can lead the trend, on the other hand, if the marketing ability is recognized by the market, the market is also willing to give the midstream companies a higher valuation.
Q: What stage of development is the medical beauty industry in now?
A: At present, the whole industry is still in a relatively primary state, then the current for the fundamentals or in a very optimistic state. With the standardization of the industry, I believe that more excellent companies will also stand out in such a trend, for the time being, more optimistic about the midstream production of products.
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