Oriental Securities: In June, American Health Club led the way with zero performance, focusing on definite opportunities for performance

The Zhitong Finance App learned that Orient Securities released a research report saying that under pressure on the overall retail market, the beauty category showed strong consumer resilience and excellent relative performance. Currently, the share of fund holdings in the US protection sector is at a historically low level, and the market's pessimistic expectations have been fully digested. The bank believes that it can focus on the following three directions: 1) definitive targets for marginal improvement in performance; 2) high-end targets in line with K-type consumer trends; 3) timely layout of overseas markets to bring in new volume targets.

Orient Securities's main views are as follows:

In June, beauty companies' zero data performance significantly outperformed the overall consumer market

In June 2026, total retail sales of social consumer goods increased 1.0% year-on-year in the same month, and retail sales per unit fell 2.0% year-on-year. In this macro context, retail sales of cosmetics products above the limit showed strong upward momentum, with a year-on-year increase of 12.6% in June. Looking back at the overall trend of the first half of 2026, the beauty care sector continued to outperform the market significantly, growing 4.5%, 8.3%, 4.7% and 2.5% year-on-year from January-February to May, respectively. Under pressure on the overall retail market, the beauty category showed strong consumer resilience and excellent relative performance.

618 Online Promotes Beauty's overall performance is superior to other industries, and the industry is accelerating towards value competition

The breakout core of the beauty market in June was driven by this year's 618 promotion. During the 2026 618 promotion period, sales of the full-cycle e-commerce platform of the beauty market increased 9.8% year-on-year, and the turnover of the beauty and skin care category alone reached 42.5 billion yuan. Diversification within the industry has intensified, and there is a lack of barriers within the mass market, yet the brand side has completely abandoned the traditional model of “price for volume” and moved towards a “value war” centered on “product innovation+brand building+refined user operation”. 1) The consumer side is more inclined to pay a premium for “exact efficacy” and “exclusive ingredients”; 2) platform logic, traffic is skewed from “low price impulse” to “high net value retention”, and high-quality resources focus more on user groups with high repurchase rates (such as Tmall 88VIP); 3) brands actively reduce their dependence on Dabo and boost storefronts and shelves to accumulate private assets. The bank believes that under the development trend of traffic dividends fading and the industry is fully upgrading to a high-quality “value war”, brands that adhere to the long-term principle, firmly return to product innovation, deepen brand building, refine and cultivate user needs, and can work hand in hand with platforms with deterministic value can also cross the cycle in stock value competition and achieve long-term growth.

Some companies have announced their performance for the first half of the year, all showing a certain improvement

1) Lafangjiahua: The net profit due to the first half of the year is expected to reach 0.37 to 401.5 million yuan (up 482% to 552% year on year). The main driving force is continuous optimization of business and category structures, and the improvement in resource allocation efficiency due to cost reduction and efficiency. 2) Beauty Beauty: Net profit for the first half of the year is expected to reach 0.22 to 27 million yuan, turning a loss into a profit over the same period last year (a loss of 0.3 million yuan for the same period last year). While the company is stabilizing traditional e-commerce, the newly arranged overseas brand general agency business continues to increase gross profit, and the efficiency of marketing expenses for its own brands has been effectively controlled. 3) Mr. Wakahatsumi: Net profit returned to mother is expected to reach 145 to 159 million yuan in the first half of the year (a year-on-year increase of 100% to 120%). The strategic value of its own brands (such as Bloom Jia and Feicui) is prominent, and the company's digital transformation has achieved remarkable results. Deepening the application of AI models has effectively promoted human efficiency improvement and cost optimization. 4) Langzi shares: The net profit for the first half of the year is expected to be 0.65 to 95 million yuan (a year-on-year decrease of 65.78% to 76.59%), after deducting non-net profit of 130 to 170 million yuan. The marked decline in profits was mainly dragged down by non-recurrent factors such as a year-on-year decline in earnings on disposed of Hatsumi shares, losses due to changes in the fair value of remaining stocks, and payment of supplementary taxes. If the above effects are excluded, the net profit of the company's main daily operating business is expected to increase by 30% to 60% year on year, mainly due to the company's women's clothing and medical and aesthetic business segments actively expanding the market and continuously optimizing the product structure, driving steady revenue growth. At the same time, supply chain optimization and fine management have led to a year-on-year decrease in the comprehensive cost ratio.

Risk warning: Demand for terminal consumers continues to weaken, new product promotion falls short of expectations, and industry competition intensifies.