Looking ahead to 2026 for the light industry and beauty care sectors, the broader environment will still face certain pressures. However, driven by dual factors of domestic demand stimulus policies and steady expansion of exports, the industry is expected to stabilize and improve.
According to Zhitong Finance APP, Huaxi Securities released a research report stating that the first year of the '15th Five-Year Plan' is expected to see an intensification of policies to expand domestic demand. Coupled with consumers' increasing pursuit of high-quality life, this will open up vast growth opportunities for the light industry and beauty care sectors. The penetration rate of cross-border e-commerce still has significant room for improvement, while improvements in international relations and rising demand from emerging markets will further drive market expansion, injecting momentum into the industry’s overseas ventures. Looking ahead to 2026 for the light industry and beauty care sectors, the macro environment will still face some pressure. However, driven by dual factors of domestic demand policy support and steady export expansion, the industry is expected to stabilize and improve.
The main viewpoints of Huaxi Securities are as follows:
Looking ahead to 2026 for the light industry and beauty care sectors, the broader environment will still face certain pressures. However, driven by dual factors of domestic demand stimulus policies and steady expansion of exports, the industry is expected to stabilize and improve.
1) Domestic Demand: In the first year of the '15th Five-Year Plan,' policies aimed at expanding domestic demand are expected to be strengthened, combined with consumers’ growing pursuit of high-quality life, creating broad growth opportunities for the industry. 2) Exports: The penetration rate of cross-border e-commerce still holds substantial potential for increase. Improvements in international conditions and rising demand from emerging markets will further drive market expansion, providing impetus for the industry’s overseas development. 3) Enterprises: Companies with core technologies and strong brand advantages will seize the initiative. Cutting-edge technologies will enhance product competitiveness, while brand influence will break through price-performance competition. These enterprises are poised to capitalize on domestic demand dividends, tapping deeper into domestic consumption potential through differentiated offerings, while leveraging their global layout advantages to expand into overseas markets, leading growth amid high-quality industry trends.
Investment Perspective:
1) Beauty: Cosmetics: Focus on high-end positioned skincare and makeup brands with Eastern cultural characteristics such as Mao Geping (01318) and Lin Qingxuan (02657), as well as companies showing marginal improvements like Marubi Biotech (603983.SH).
* Medical Aesthetics: Pay attention to Jinbo Biotech (920982.BJ), which has clear advantages in next-generation materials, and Marubi Biotech (603983.SH), actively developing new materials.
* Daily Chemicals: Focus on brands with distinct advantages in niche segments and leading industry positions, as well as companies showing notable operational improvements such as Dengkang Oral Care (001328.SZ), Runben Shares (603193.SH), and Shanghai Jahwa (600315.SH).
2) Home Furnishings: Pay attention to leading companies with stronger channel capabilities and multi-category layouts, such as Oppein Home Group (603833.SH) and Kuka Home (603816.SH). Also consider Man Wah Holdings (01999), which benefits from expectations of improved U.S. real estate due to Federal Reserve interest rate cuts and focuses on functional sofas in North America.
3) Two-Wheelers & Motorcycles: Two-wheelers generally represent a necessity-driven consumer product category with natural replacement cycles, and overall industry demand remains relatively stable. The current market sentiment towards two-wheelers is relatively pessimistic, but once the new national standards become clearer, sector allocation opportunities are expected to become more evident. Monitor Yadea Group (01585), Aima Technology (603529.SH), and Ninebot Company (689009.SH).
4) Light Industrial Consumption: Personal Care: Strategies centered on flagship products and omni-channel expansion form the competitive edge for enterprises. Focus on Baiya Shares (003006.SZ) and Winner Medical (300888.SZ).
* Stationery: Product and channel optimization upgrades are key points for stationery companies adapting to current consumption trends. Focus on Morning Glory Shares (603899.SH) and Qixin Group (002301.SZ).
Gold jewelry: Focus on Laopu Gold (06181), with optimism about the company's continuous channel expansion and the exponential growth effect driven by its breakthroughs in the market.
5) Exports: Pay attention to companies with significant technological barriers and brand advantages, as well as sustained high growth in niche markets, such as Haoyang Co., Ltd. (300833.SZ) and Yiyi Co., Ltd. (001206.SZ).
Risk warnings: Macroeconomic performance below expectations; sluggish consumer recovery; geopolitical instability; intensified market competition.
