HK Stock Market Move | Partial cosmetics stocks increase, MAO GEPING (01318) closing up more than 10%. Institutions predict that domestic brands are expected to rise in the second half of 618.

Partial beauty stocks have expanded their gains, as of the time of writing, MAO GEPING (01318) rose 9.69% to 65.65 Hong Kong dollars; CHICMAX (02145) rose 6.16% to 38.6 Hong Kong dollars; GIANT BIOGENE (02367) rose 2.75% to 29.46 Hong Kong dollars. Shenwan Hongyuan Group released a research report stating that the 618 promotion will start in mid-to-late May, and will officially enter the second half of the 618 promotion next week. Currently, international brands on the Douyin platform lead the beauty sales ranking during the promotion temporarily. It is expected that domestic brands will receive more platform traffic and recommendation time during the second half of the 618 promotion, and brands like Proya Cosmetics, Han Shu, and MAO GEPING are expected to rise during this period, accelerating GMV growth. As for Tmall, Li Jiaqi is expected to promote beauty products in the second half of 618 promotion to boost sales for partner brands. Huayuan Securities also stated that for the first time, cosmetics will be included in the scope of local consumer subsidies. From the perspective of subsidy intensity for cosmetics, the subsidy intensity may further tilt towards top-quality beauty brands. Although the single consumption amount for beauty products is lower than that for home appliances, the high frequency of consumption, wide coverage, and strong industrial chain driving effect suggest that beauty subsidies may increase the conversion rate of high-priced products, benefiting top-quality brands to continuously gain market share.