Huaxi Securities: The beauty sector continues to recover on Double Eleven, with a significant increase in industry confidence.

Huaxi Securities released a research report stating that during this year's Double 11 shopping festival, the cosmetics sector continued its recovery trend since the beginning of the year, and various platforms took multiple measures to promote market stabilization and rebound. Foreign brands have shown some improvement this year, while domestic brands have also demonstrated steady performance, with top brands still leading various rankings and domestic brands making noticeable progress. Faced with intense competition for traffic, domestic brands with core technology and ingredient endorsements, highlighting oriental cultural characteristics, and outstanding brand strength, product strength, and operational capabilities are expected to continue to lead and stand out. Recommended focus: 1) Brands with steady growth and strong performance certainty: Maogeping, Wanmei Biological; 2) Brands with continued trend reversal and significant marginal improvement: Shuiyang Stock, Shanghai Jahwa. 3) Brands with core technology endorsements and clear medium to long-term trends: Juzi Biological. 4) Daily chemical brands with cost-effective advantages and excellent operation in emerging channels: Runben Stock, Dengkang Oral Care.