Plastic surgery and other medical aesthetics services and products are becoming a hot investment sector in China, and Shenzhen, being the country’s richest city, is seen as being at the center of its development, according to local media. This is not just because online search topics such as “elves ears” are surging in popularity. It is reflected in sales of companies engaged in the sector, which is increasingly attracting retail heavyweights. From 198 billion yuan last year, the industry is forecast to swell to more than 300 billion by 2023.
Listed companies have seen their stock prices surge recently. In the 43 trading days from March 26 to May 31, the “Flush Medical Beauty Concept Index” tracked by a local information provider jumped by more than 60%. They include 12 companies with a rolling P/E ratio of more than 100.
Online giants Pinduoduo, Alibaba, Meituan, and JD.com are all invested in the space. But analysts believe there is still room for SMEs to grow, as long as they can specialise and differentiate their products and services.
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