Business and Retail Industry Weekly Report: Cultivated diamond sector picks up, beauty care sector rises catalyzed by double festivals – yqqlm

Indian grown diamondsimport and exportThe data exceeded expectations, and the sector rose sharply across the board. In January 2022, India’s lab-grown diamond import and export data exceeded expectations.Among them, the import value of rough diamonds was US$153 million, up 77.3% year-on-year, and +16.2% month-on-month; the penetration rate of imports was 11.2%, +4.8 year-on-year. The penetration rate was 5.6%, +1.8 PCT compared to the same period last year. The early-stage cultivated diamond sector was pulled back, mainly affected by leading companiesperformanceDisturbance and media coverage. Catalyzed by better-than-expected data from India, sector sentiment has picked up.We believe that technological breakthroughs are superimposed on consumers who have been intensively advancing in recent yearseducatethe medium and long-term penetration rate of cultivated diamonds has broad room for improvement. At present, the valuation of the major leading companies in the sector has reached a reasonably low level, that is, under the condition that the fundamentals are good, the valuation will be adjusted to a greater extent on the basis of Q3-4 in 2021. , the cost-effectiveness of the configuration at the current point in time has been significantly improved.

Under the catalysis of Valentine’s Day and Lantern Festival, Tmall,JD.comBeauty sales doubled year-on-year. According to Qingyan data, Tmall Beauty’s 2022 Valentine’s Day beauty and skin care, make-up, beauty and body equipment and other categories of transactions increased by more than 300% year-on-year, of which lip essence increased by more than 5 times, and sunscreen spray and makeup setting spray increased by nearly 4 times.JD.comDuring the Lantern Festival in 2022, the sales volume of facial and skin care products will increase by more than 5 times, and the sales volume of small products such as fragrance and makeup will increase by 2.4 times year-on-year. Judging from the beauty data of Double Eleven in 2021 and Valentine’s Day and Lantern Festival in 2022, men’s beauty has gradually entered the public eye. One of the categories with obvious growth in the cosmetics market. In addition, the odor economy is another fast-growing category. In the context of consumption upgrades in the beauty industry, new subdivision boom “tracks” continue to emerge, contributing new growth points to the industry. Attention should be paid to the multi-brand and multi-segment “tracks” layout targets.

Investment suggestion: Cultivation of diamonds – the penetration rate in the medium and long term has broad room for improvement. At present, the valuation of the main leading companies in the sector has reached a low level, continue to recommendPower Diamond、Chinese soldier red arrowit is recommended to pay attention toYellow River Cyclone、Sifangda、WaldandSINOMACH.Jewelry & Mother and Baby – It is recommended to focus on the gold jewelry leader that is driven by the improvement of processing technology and the rise of the national tide culture.Zhou Dasheng、Tide Acer 、Chow Tai Fook、Lao FengxiangWait, pay attention to the mother and baby faucetkid kingandBaby room. Medical Beauty & Cosmetics – Under the influence of the festival, the sales of beauty brands increased year-on-year, and new growth points were constantly emerging in the industry. Look at the national makeup-related companies: The valuation has been greatly adjusted to a reasonable level, and the overall penetration rate is still low. It has the logic of innovation, consumption upgrade, and domestic substitution, and has a strong growth driving force.

maintainAmic、Bethany、Proya“Recommended” rating, it is recommended to focus on multi-brand and multi-segment “track” layoutsShanghai Jahwait is recommended to pay attention to the logic of production capacity + category expansion and is expected to benefit from travel and industrial policiesCosi shares、Jiaheng Jahwa。

Risk warning: overall consumer demand is weak and industry competition intensifies.

(Article source: Minshengsecurities）

Article source: Minsheng Securities

Responsible editor: 91

Original title: Business and Retail Industry Weekly Report: Cultivated diamond sector picks up and beauty care sector rises catalyzed by double festivals