The beauty industry's 24H1 showed weak growth, with the e-commerce platform returning to the logic of GMV and outstanding performance of leading domestic beauty brands.
Zhitong Finance and Economics App learned that Minsheng Securities' research report stated that the 24H1 sales of various retail formats have differentiated, and specialty stores and department stores' sales are under pressure. The performance of cross-border enterprises is differentiated, with boutique and branded sellers showing more resilience; 2Q24 department stores' sales declined, mainly due to the diversion of online and shopping centers and outlet formats. The beauty industry's 24H1 showed weak growth, with the e-commerce platform returning to the logic of GMV and outstanding performance of leading domestic beauty brands. The retail sales of cosmetic products in 24H1 increased by 1.0% year-on-year, lower than the overall 3.7% year-on-year growth rate of social retail. Under the influence of the "618" promotion, the retail sales of cosmetic products in Q2 increased by 3.0% year-on-year, with a growth rate exceeding that of the overall social retail.
Overview of the commercial retail sector. In 24H1, the total revenue of the Shenyin Wanguo commercial retail sector was 672.848 billion yuan, a year-on-year decrease of 5.1%, and the total net profit attributable to the parent company was 14.614 billion yuan, a year-on-year decrease of 18.6%; In 24Q2, the total revenue of the sector was 332.048 billion yuan, a year-on-year decrease of 5.2%, and the total net profit attributable to the parent company was 6.086 billion yuan, a year-on-year decrease of 16.3%. In 24H1, the total retail sales of consumer goods were 2.36 trillion yuan, a year-on-year increase of 3.7%. Among them, the retail sales of cosmetic products were 216.8 billion yuan, a year-on-year increase of 1.0%, and the retail sales of gold and silver jewelry were 172.5 billion yuan, a year-on-year increase of 0.2%.
Retail sector: The sales of various retail formats differentiated in 24H1, with specialty stores and department stores' sales under pressure. 1) Cross-border e-commerce: The performance of cross-border enterprises is differentiated, with boutique and branded sellers showing more resilience. In 2Q24, the cross-border e-commerce sector's revenue was 24.753 billion yuan, a year-on-year increase of 14.3%; the sector's net profit attributable to the parent company was 1.76 billion yuan, a year-on-year increase of 20.3%. Among them, in 2Q24, Saivishidian's revenue increased by 55.52% year-on-year, and net profit increased by 51.99% year-on-year; Loctek's revenue increased by 48.08% year-on-year, and net profit increased by 74.02% year-on-year. 2) Department store sector: Department stores' sales declined in 2Q24, mainly due to the diversion of online and shopping centers and outlet formats. In 24H1, the average daily customer flow in national shopping centers was 0.0184 million, a year-on-year increase of 4.0%, but the transaction price has slightly declined. In 2Q24, the sector's revenue was 11.386 billion yuan, a year-on-year decrease of 66.2%; the sector's net profit attributable to the parent company was 0.128 billion yuan, a year-on-year decrease of 92.4%. 3) Supermarket sector: In 2Q24, the sector's revenue was 27.928 billion yuan, a year-on-year decrease of 8.4%; the net profit attributable to the parent company was -0.685 billion yuan, with the loss narrowing.
The beauty industry showed weak growth in 24H1, with the e-commerce platform returning to the logic of GMV and outstanding performance of leading domestic beauty brands.
The retail sales of cosmetic products increased by 1.0% year-on-year in 24H1, lower than the overall 3.7% year-on-year growth rate of social retail; Under the influence of the '618' promotion, the retail sales of cosmetic products increased by 3.0% year-on-year in Q2, surpassing the overall social retail. In terms of platforms, the contribution of Douyin channel to the large-scale beauty market in 24H1 was approximately 48%, and Tmall's sales growth improved marginally in May and June. In terms of performance, the overall revenue of the beauty and skincare sector in 24H1 was 23.877 billion yuan, a year-on-year increase of 5.98%, achieving a net profit attributable to the parent company of 3.118 billion yuan, a year-on-year increase of 6.99%; In 24Q2, the overall revenue was 12.877 billion yuan, a year-on-year increase of 5.20%, with a net profit attributable to the parent company of 1.531 billion yuan, a year-on-year decrease of 1.77%. 1) Leading beauty brands: In 24H1, the net profit attributable to the parent company of Runben, Proya Cosmetics, and Marubi Co., Ltd. increased by +50.69%, +40.48%, and +35.09% year-on-year, respectively, while Betteroni's net profit increased by 7.50% year-on-year; Fulairda / Bloomage Biotechnology / Shanghai Jahwa / Syoung Group / Lushang Freda's net profit decreased by -3.71%, -19.51%, -20.93%, -25.74%, and -33.18% year-on-year. 2) Leading sun protection material producer: Nanjing Cosmos Chemical's non-GAAP net profit increased by +16.44%/+5.23% in 24H1/Q2. 3) Midstream processing enterprises: Fujian Green Pine showed strong performance, achieving a turnaround from loss to profit in 24H1/Q2.
Gold and jewelry: Under the influence of the high gold price, gold jewelry and investment products showed polarized performance. 1) Industry trends: According to the China Gold Association, the national gold consumer consumption in 24H1 was 523.75 tons, a year-on-year decrease of 5.61%. Among them, the gold jewelry consumption was 270.02 tons, a year-on-year decrease of 26.68%; gold bars and coins were 213.64 tons, a year-on-year increase of 46.02%. In 24H1, the total retail sales of gold and silver jewelry in China increased by 0.20% year-on-year, lower than the 3.7% growth rate of total social retail. 2) Revenue and performance: In 24H1, the overall revenue of the gold and jewelry sector was 99.737 billion yuan, a year-on-year increase of 9.1%; In 24Q2, the total revenue was 41.747 billion yuan, a year-on-year increase of 7.1%. In 24H1, the net profit attributable to the parent company of the gold and jewelry sector was 3.318 billion yuan, a year-on-year increase of 1.3%; In 24Q2, the net profit attributable to the parent company was 1.347 billion yuan, a year-on-year decrease of 4.3%. In 24Q2, Caibai's revenue increased by 41% year-on-year, mainly due to a significant increase in the sales of precious metal investment products; Manka Long's revenue increased by 50%, mainly due to the coordinated efforts of online platforms and offline channels; In 24Q2, Laofengxiang benefited from the rise in gold prices, with a year-on-year increase in gross margin of 1.57 pct. The leading brand Lao Pu Gold, with an enhanced brand image, achieved outstanding revenue and profit performance: In 24H1, it achieved revenue of 3.52 billion yuan, a year-on-year increase of 148%, and a net profit of 0.588 billion yuan, a year-on-year increase of 199%. 3) Mid-term dividend plan: Guangdong Chj Industry plans to distribute a cash dividend of 0.089 billion yuan, accounting for 38.72% of the net profit attributable to the parent company in 24H1; Chow Tai Seng plans to distribute a cash dividend of 0.326 billion yuan, accounting for 54.14% of the net profit attributable to the parent company in 24H1.
In the medical beauty industry, the upstream new materials and new product revenues and profits have shown a bright growth, and the downstream institutional profitability is steady. In the first half of 2024, the total revenue of the medical beauty sector was 27.318 billion yuan, a year-on-year increase of 5.9%; in the second quarter of 2024, the total revenue was 13.828 billion yuan, a year-on-year increase of 4.2%. In the first half of 2024, the net profit attributable to the mother of the medical beauty sector was 3.514 billion yuan, a year-on-year increase of 22.8%; in the second quarter of 2024, the net profit attributable to the mother was 1.852 billion yuan, a year-on-year increase of 24.3%. In the second quarter of 2024, Jinbo Biotechnology's revenue was 0.377 billion yuan, a year-on-year increase of 100.4%, mainly due to the smooth promotion of three types of collagen protein injection devices. In the first half of 2024, Haohai Biotechnology increased by 7.0% year-on-year, with hyaluronic acid revenue of 0.417 billion yuan, a year-on-year increase of 51.30%. The hyaluronic acid product combination has gained wide market recognition, and the fourth generation hyaluronic acid "Venus Moon White" was approved in July 2024. In the first half of 2024, Jiangsu Wuzhong Medical Beauty and Biotechnology's revenue was 80.1196 million yuan, with a gross margin of 82.9%. AestheFill obtained the NMPA type III medical device certificate on January 22, 2024 and was launched for sale in April.
Investment advice:
①In the cosmetics sector, recommend Proya (603605.SH), Runben Co., Ltd. (301383.SZ), ReYoung Pharmaceutical (02367), Sumei Co., Ltd. (02146), Nanjing Cosmos Chemical (300856.SZ), Syoung Group (300740.SZ), Marubi Biotechnology (603983.SH), Lushang Freda Pharmaceutical (600223,SH), Jiaheng Jahwa (300955.SZ), Bloomage Biotechnology Corporation Limited (688363.SH), Be Titan Pharmaceutical (300957.SZ), Shanghai Jahwa United (600315.SH), Fujian Green Pine (300132.SZ).
②In the retail sector, recommend Zhejiang China Commodities City Group (600415.SH), Loctek Ergonomic Technology Corp. (300724.SZ), Huakai Yibai Technology (300592.SZ), Saishi Times (301387.SZ), Chongqing Department Store (600729.SH); Recommend Mingyue Lens (301101.SZ), Doctorglasses Chain (300622.SZ), recommend global retail leader Miniso (09896), recommend professional maternity and baby retail leader Haier King (301078.SZ).
③In the cultivated diamond sector, it is recommended to pay attention to Sf Diamond Co., Ltd. (301071.SZ), SF Diamond Co., Ltd. (300179.SZ), Beijing Worldia Diamond Tools (688028.SH), Huifeng Diamond (839725.BJ), Henan Huanghe Whirlwind (600172.SH), etc.
④In the jewelry sector, recommend Lao Feng Xiang (600612.SH), Lao Pu Gold (06181), Guangdong Chj Industry (002345.SZ), China Gold (600916.SH), Chow Tai Seng Jewelry (002867.SZ), China National Cotton Reserves Corporation (605599.SH), Mancalon (300945.SZ), Chow Tai Fook (01929).
⑤In the medical beauty sector, recommend Imeik Technology Development (300896.SZ), Jinbo Biotechnology (832982.BJ), Shanghai Haohai Biological Technology (688366.SH), Lancy Co.,Ltd. (002612.SZ), Beautiful Countryside (02373), cautiously recommend Jiangsu Wuzhong Pharmaceutical Development (600200.SH).
Risk reminder: New product promotion not meeting expectations, deterioration of industry competition pattern, terminal demand falling short of expectations, etc.
