Liren Lizhuang (605136) Limit-Up Analysis: Driven by Both Policy Tailwinds and Business Growth

Liren Lizhuang (605136) hit the limit-up on November 18, 2025, with a closing price of 11.04 yuan, an increase of 9.96%, and a turnover of 112 million yuan [0]. The core driving factors include:

1. Policy Tailwinds
   : The National Medical Products Administration (NMPA) issued the “Opinions on Deepening Cosmetic Regulatory Reform to Promote High-Quality Industrial Development”, putting forward 24 reform opinions and 48 specific measures, encouraging international cosmetic new products to launch first in China and exempting them from submitting overseas marketing certificates [5][6].
2. Business Growth
   : The company’s own brand “Yurongchu” achieved a year-on-year growth of 99.59% [0], while maintaining stable cooperation with more than 60 international brands such as Sulwhasoo and Avene [0].
3. Industry Trends
   : The market share of domestic brands increased from 50.4% in 2023 to 55.2% in 2024, accelerating the process of domestic substitution [0]; the total GMV of beauty products across the entire network during Double 11 reached 132.5 billion yuan [0].

• Policy and Business Synergy
  : The company benefits from both international brand cooperation (policy relaxation for new product introduction) and the growth of its own domestic brands (rising trend of domestic products), forming a dual competitive advantage [0][5].
• Sector Rotation Effect
  : The high-performance growth attribute of the cosmetics sector among consumer stocks has been re-focused by the market, with rotation from the previous hot AI sector to the consumer sector [2][4].
• Long-term Industry Impact
  : The new regulatory reform policies will promote high-quality development of the industry, benefit leading compliant enterprises, and accelerate industry integration [5][6].

• Opportunities
  : Policy dividends continue to be released, and the company is expected to further expand international brand cooperation and market share of its own brands; the industry’s high growth expectations support valuation improvement [0][4].
• Risks
  : The overall market volatility is large (Shanghai Composite Index closed down for three consecutive days, with over 4,100 stocks falling [7]), and there may be profit-taking pressure in the short term; industry competition intensifies, and continuous attention should be paid to the effect of policy implementation and the sustainability of business growth [0][7].

Liren Lizhuang’s limit-up reflects the market’s positive expectations for cosmetic regulatory reform and industry growth potential. With its leading position, diversified business layout, and policy dividends, the company has strong competitiveness during the industry transformation period. Investors should pay attention to the subsequent implementation of policies, the sustainability of own brand growth, and changes in overall market sentiment [0][4][7].