The Zhitong Finance App learned that CICC released a research report stating that with the increase in myopic people and the development of the face value economy, there is a broad market space for contact lenses and eyelids. MiHitomi's work is a rapidly developing circuit in recent years. The barriers are relatively high. Leading ODM manufacturers have formed a comprehensive competitive advantage with rich qualifications, rapid design iteration, and large-scale production capacity; currently, Taiwanese manufacturers dominate, and leading mainland companies are rapidly seizing market share with product capabilities, response speed, and high cost performance. CICC believes that as consumer demand grows and technology is upgraded, the competitive advantages of mainland manufacturers will be further highlighted.

China has a large myopic population base, bringing broad market space to the contact lens and eyeliner industry. According to Frost & Sullivan, the myopic population in China is expected to reach 644 million in 2024, and demand for eyewear products is huge. According to Toubao Research Institute, the domestic contact lens retail market is about 13.59 billion yuan in 2022, expected to reach 22.13 billion yuan in 2025, and a CAGR of 17.6% in 2022. Among them, the beauty pupil terminal market is developing rapidly. In the future, CICC believes that the contact lens and eyeliner market is expected to expand further with trends such as the spread of daily contact lenses and the use of beautiful eyes and makeup.

The global contact lens industry pattern is relatively stable; the eyeliner foundry industry is developing rapidly and competition is diversified. The contact lens industry chain consists of upstream raw material suppliers, midstream manufacturers, and downstream sellers. Midstream manufacturers use ODM and OEM models and have a strong voice. The competitive pattern of global contact lens manufacturers is stable, the four major international ophthalmology leaders dominate, and the industry concentration is high. However, Mitomi's work is a rapidly developing racetrack in recent years. The barriers are relatively high. Leading ODM manufacturers have formed a comprehensive competitive advantage with rich qualifications, rapid design iteration, and large-scale production capacity; currently, Taiwanese manufacturers dominate, and leading mainland companies are rapidly seizing market share with product capabilities, response speed, and high cost performance.

Taiwanese manufacturers have significant advantages in the OEM industry. Overseas leaders rely on brands to lead the market, and mainland manufacturers are rising at an accelerated pace. Taiwan, China: It has taken an important position in the world. Companies such as Jingshuo have shown a good sales scale and profitability in recent years, reflecting that OEM is currently a profitable business model in the contact lens industry. Overseas: Major companies include Johnson & Johnson, Alcon, Cooper Optics, and Bausch & Johnson. The contact lens business has seen steady revenue growth and has become one of its pillars of profit. Mainland China: Accelerate efforts in various areas such as product richness, design capability, process level, and production scale. CICC believes that as consumer demand grows and technology is upgraded, the competitive advantages of mainland manufacturers will be further highlighted.

risks

The impact of the overall economic environment on downstream consumption; medical emergencies related to contact lens and eye quality issues; increased market competition, production capacity of mainland Chinese manufacturers is climbing, or sales of terminal products fall short of expectations.