The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that medical and aesthetic growth is first and foremost supply-driven. Multiple layers of parallel solutions such as injections, photoelectricity, and surgery respond to facial aging. Expanding, sinking, promoting, and innovating together form the industry's growth path. The total market value of the world's major medical and aesthetic listed companies has exceeded 100 billion US dollars. The review of large single products shows that academic evidence is somewhat pioneering in the early and middle of the category, but the scale of the report depends more on expanding indications, expanding regions, and commercialization capabilities. There is still room for commercialization of academic research in the mechanism x path matrix, and innovative options for supply and demand creation in the medical and aesthetic industry have existed for a long time.
CITIC Construction Investment's main views are as follows:
Draw product category maps based on demand
Facial aging is a full-level process, and different product combinations from the epidermis to the bone scaffold require a combination of products to balance “risk - recovery period - effect”. Drawing up a category map of medical and aesthetic products from the demand side. Skin irritation, neuromodulation, volume reduction injections, energy sources and surgery expand in parallel. The number of standardized racetracks continues to increase, and multi-dimensional use of “seeking beauty” and “anti-aging” is a long-term trend.
Follow the three-path “academic—access—scale” to resume “10 billion large-scale single products”
Botulinum toxin's large single product, Botox, has taken the foundation for treatment to expand the path of cosmetic indications. The pace of academic papers is relatively advanced during the entry window, and doctors' consensus and commercialization have boosted the scale of 10 billion dollars in parallel. The hyaluronic acid circuit Ruilan completed key admission and academic verification earlier. Juvederm later expanded, but it can be seen that the net sales scale was larger, indicating that academic accumulation and reporting volume can diverge. Commercialization and channel capabilities are just as critical.
Four paths for industry growth: product expansion, decline, promotion and innovation
The stock circuit relies on core product regions and indications to expand and compete; clinics in major markets such as China, the US, Japan, and South Korea are all the main driving forces for the decline in medical and aesthetic channels; looking at registration and education of new categories such as regenerative/optoelectronics in the medium term; there is still plenty of room for commercialization of academic research in the long-term mechanism x path matrix, and innovative options for supply and demand in the medical and aesthetic industry have existed for a long time.
Investment advice
Sorting through the product matrices of 26 major listed companies in the medical and aesthetic industry in the global market, the market value related to the medical and aesthetic business has exceeded 100 billion US dollars. It is recommended to focus on brands that continue to have portfolios that can expand indications/expand the scale of regional product contributions, such as Aimeike, Sihuan Pharmaceuticals, Jinbo Biotech, Huaxi Biotech, Furui Medical Technology, etc., as well as channel players with service networks that can be replicated across regions, such as Langzi Co., Ltd., New Oxygen, and Beautiful Garden Healthcare.
Risk warning: weakening consumer spending intentions, intensifying industry competition, falling short of expectations in registration and indications, tightening of compliance and strong supervision, safety incidents and public opinion shocks, category iteration and technology route risks, channel decline and quality falling short of expectations, exchange rate and cross-border business fluctuations