Ping An Securities: "Special Action Plan to Promote Healthy Consumption" Released, Health Product Industry Welcomes Development Opportunities.

Ping An Securities released a research report stating that with the continuous introduction of policies to promote consumption, as well as the gradual recovery of residents' income and confidence, consumer recovery will show a low to high rhythm, maintaining a "stronger than the overall market" rating for the food and beverage industry. This plan directly benefits the health care product sector, optimistic about the sectoral opportunities for health care products, focusing on enterprises that already have competitive advantages. It is recommended to pay attention to Byhealth Co., Ltd. (300146.SZ), Sirio Pharma (300791.SZ), Cabio Biotech (Wuhan) (688089.SH), etc. Details: Xinhua News Agency reported that the Ministry of Commerce, the National Health Commission, and 12 other departments recently jointly issued the "Special Action Plan to Promote Healthy Consumption" on the 9th. Ping An Securities' main points are as follows: Improve the quality of supply of health products and services to better meet the needs of people's health consumption. This plan proposes to improve 10 key tasks, among which the following are directly related to the food and beverage sector: (1) Improving the level of healthy dietary consumption, cracking down on illegal food additives, conducting effective spot checks on organic food certification; strengthening the construction of nutrition and health projects in catering, promoting the use of food guide for catering enterprises. (2) Optimizing the supply of special foods in the market, deepening the reform of the registration and filing system for special foods, improving the pre-approval and post-evaluation mechanism for health food, smoothing the review and registration of new functions and products of health food. Encourage enterprises to strengthen process research and development, product innovation, quality control, focus on developing special medical formula foods, increase efforts to crack down on price violations in the field of health food, "one old and one small". This plan strengthens the concept of nutrition and health without additives in food processing and catering, and optimizes the supply system of health care products, directly promoting the healthy development of the health product industry. The health product industry is ushering in new opportunities, focusing on enterprises with competitive advantages. With the continuous improvement of per capita disposable income of residents in China, the enhancement of residents' health awareness, and the trend of population aging, the health product market in China is expected to further expand and usher in a golden period of rapid development. Companies with the following competitive advantages are more likely to stand out: (1) Brand awareness and market insight: Companies with good brand awareness and industry reputation, able to timely explore market trends and customer demands of health products, dynamically adjust brand building and marketing strategies, are more likely to gain consumer recognition and have a stable customer base. (2) R&D capabilities: Enterprises with strong R&D capabilities have distinct advantages in product development, can continuously launch new products, build a complete product matrix, and meet the increasingly diverse health product consumption demands of consumers. (3) Product quality: Good product quality and guaranteed safety are the foundation for the long-term sustainable development of health product companies. Strict quality control and quality assurance are essential to cultivate a highly loyal consumer base. (4) Sales channels: Proper channel layout can more efficiently meet the diverse needs of consumers, enhance product sales and brand influence. Risk Warning: 1) The slope of consumer recovery is lower than expected: Under the fluctuation of macroeconomic growth rates, the slope of the short-term recovery of residents' consumption capacity and willingness may be lower than expected, affecting the speed of recovery in the consumption sector. 2) Food safety issues: Food safety is the bottom line of industry development, once there is a food safety issue, it will have a huge negative impact on the industry, and industry recovery may require a longer time. 3) Impact of raw material fluctuations: The food and beverage industry can alleviate the pressure of rising raw materials to a certain extent by raising prices, but excessive increases in raw materials will affect industry gross profit margins.