Changjiang Securities: Steady medical performance with superior resilience, still has valuation and cost-effectiveness advantages.

The research report of Yangtze Securities pointed out that the stable and healthy medical equity concentration, after 2020, will introduce a comprehensive management team for the industry talents and release high-target equity incentives in 2024. Looking ahead, under the support of the beauty and personal care beta, event dividends, and leading advantages, the growth center is moving upward. As a result of structural optimization, improvement in sell-through rates and discount rates, and precise marketing investment, profitability is driven to increase at a faster rate. In the medical sector, the burden of infection protection products and merger and acquisition impairments has significantly reduced, and the certainty of growth under the consolidation of routine business has improved and the center has shifted upwards. The fluctuation of stock prices and valuations at the beginning of 2022 is mainly affected by infection protection products, and stable consumption and routine medical services will become the pricing business after 2022. Since 2024 Q3, the bottom cycle of consumption and medical industries has been rising, with both valuation and stock prices increasing. Compared with some new consumption companies, they have strong growth potential and better performance flexibility, still maintaining an advantage in valuation and price-to-performance ratio.