Proya Cosmetics (603605.SS): Media reports investment in Peterson's Lab brand; potential further step in its multi-brand roadmap

Media reports state that Proya has acquired a 19% stake in Shanghai Kodai Biotechnology on Sep 16, which operates skincare brand Peterson's Lab. We take no view on the content of the reports and note that Proya has made no announcement in relation to this. Peterson's Lab gained a strong position in China through its research-led identity; created by Keda Bio in collaboration with Canadian biological research laboratory Peterson's Lab, the brand focuses on "rational molecular skincare" and targets mass skincare, including blue copper peptide anti-aging serums, slow-release salicylic acid acne treatments and multivitamin moisturizers. Growth has been mainly driven by Douyin channel, and the brand also saw a solid consumer base on Tmall/Douyin, alongside sub-brand eios focusing on body care. GS view: such an investment would be broadly aligned with Proya's multi-brand strategy. 1) Peterson's Lab could provide a differentiated addition to the group given its science-led laboratory skincare