Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a revenue growth of over 30% in 2024, with total revenue reaching 3.885 billion yuan (up 34.6% year-on-year) and a net profit of 881 million yuan (up 33.0% year-on-year) [4][5] - The company is expected to continue its strong performance, with projected net profits for 2025-2027 at 1.179 billion, 1.536 billion, and 1.939 billion yuan respectively, reflecting a compound annual growth rate of approximately 33.9% [4][7] - The company's gross margin for 2024 was 84.4%, with a stable expense ratio across sales, management, and R&D [5][7] Financial Summary and Valuation Metrics - Revenue and net profit projections for 2025 are 5.184 billion yuan and 1.179 billion yuan respectively, with an expected EPS of 2.41 yuan [7] - The company's P/E ratios for 2025, 2026, and 2027 are projected to be 41.9, 32.2, and 25.5 respectively, indicating a favorable valuation trend [7] - The company maintains a high return on equity (ROE) of 32.7% for 2025, reflecting strong profitability [7]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4][7]. Core Insights - The company reported a revenue of 3.885 billion yuan for 2024, representing a year-on-year growth of 34.6%, with a net profit of 881 million yuan, up 33% year-on-year. The gross margin stood at 84.4%, with a net margin of 22.69% [1][4]. - The color cosmetics segment showed significant growth, achieving revenue of 2.304 billion yuan, a 42.04% increase year-on-year, while the skincare segment generated 1.429 billion yuan, growing 23.21% year-on-year [2]. - The company is expanding its online channels rapidly, with online revenue reaching 1.784 billion yuan, a 51.23% increase year-on-year, while offline revenue was 1.949 billion yuan, up 21.64% [3]. Financial Performance Summary - For 2024, the company achieved a total revenue of 3.885 billion yuan, with a year-on-year growth rate of 34.6%. The net profit was 881 million yuan, reflecting a growth of 33% [6]. - The projected net profits for 2025, 2026, and 2027 are estimated to be 1.158 billion yuan, 1.449 billion yuan, and 1.795 billion yuan, respectively, with corresponding P/E ratios of 40, 32, and 26 [4][6].

Summary of Mao Geping Cosmetics Co. (1318.HK) Earnings Call Company Overview - **Company**: Mao Geping Cosmetics Co. (1318.HK) - **Industry**: Cosmetics Key Financial Results - **2H24 Sales**: RMB 1,913.2 million, up 28.6% YoY, but 8% below Goldman Sachs estimates (GSe) and 7% below Wind consensus [1][5] - **2H24 Net Profit**: RMB 388.5 million, up 24.1% YoY, 6% below GSe and Wind consensus [1][3] - **2024 Full Year Revenue**: RMB 3,885 million, up 34.6% YoY, 4% below both GSe and consensus [1][3] - **2024 Full Year Net Profit**: RMB 880.6 million, up 33.0% YoY, 3% below GSe and consensus [1][3] - **Adjusted Net Income**: RMB 411 million for 2H24, up 31% YoY, 8% below GSe [1][3] Sales Performance by Category - **Color Cosmetics**: Grew by 41% YoY in 2H24 to RMB 1,219 million, representing 64% of sales mix, 2% above GSe [8] - **Skincare**: Increased by 10% YoY in 2H24 to RMB 614 million, 24% lower than GSe, representing 32% of sales mix [8] - **Makeup Artistry Training**: Grew by 24% YoY in 2H24 to RMB 80 million, 5% lower than GSe [8] Sales Performance by Channel - **Offline Sales**: Increased by 21% YoY in 2H24 to RMB 982 million, representing 51% of sales mix, 3% lower than GSe [9] - **Online Sales**: Grew by 40% YoY in 2H24 to RMB 851 million, representing 44% of sales mix, 14% lower than GSe [11] Margin Analysis - **Gross Margin**: Contracted by 1.3 percentage points YoY to 83.8%, largely in line with GSe [12] - **Operating Margin**: Increased by 0.5 percentage points YoY to 26.3%, above GSe of 25.8% [13] - **Net Margin**: Contracted by 0.7 percentage points YoY to 20.3%, above GSe of 19.9% [14] Dividend Information - **Dividend Payout**: Declared a final dividend of RMB 0.72 per share, with a total payout ratio of 154%, significantly above GSe of 124% [15] Future Outlook and Strategic Focus - **2025 Revenue/NI Outlook**: Discussion expected to focus on key drivers and strategies to balance color makeup and skincare [2] - **1Q25 Performance**: Anticipated updates on offline and online sales performance, including Women's Day recap [2] - **Branding/Product/Channel Strategies**: Emphasis on skincare category and online channel expansion [2] Risks and Considerations - **Key Risks**: Include the pace of beauty consumption penetration in China, online penetration rates, and new product development in skincare [18][19] Valuation and Price Target - **Price Target**: HK$ 75, based on a 25x 2026E PE, with a downside of 34.2% from the current price of HK$ 113.90 [20][17] This summary encapsulates the key points from the earnings call, highlighting the financial performance, sales breakdown, margin analysis, future outlook, and associated risks for Mao Geping Cosmetics Co.

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4][7]. Core Insights - The company reported a revenue of 3.885 billion yuan for 2024, representing a year-on-year growth of 34.6%, with a net profit of 881 million yuan, up 33% year-on-year. The gross margin stood at 84.4%, with a net margin of 22.69% [1][4]. - The color cosmetics segment showed significant growth, achieving revenue of 2.304 billion yuan, a 42.04% increase year-on-year, while the skincare segment generated 1.429 billion yuan, growing 23.21% year-on-year [2]. - The company is expanding its online channels rapidly, with online revenue reaching 1.784 billion yuan, a 51.23% increase year-on-year, while offline revenue was 1.949 billion yuan, growing 21.64% year-on-year [3]. Financial Performance Summary - The company achieved a total revenue of 3.885 billion yuan in 2024, with a year-on-year growth rate of 34.6%. The net profit for the same period was 881 million yuan, reflecting a growth of 33% [1][6]. - The projected net profits for 2025, 2026, and 2027 are estimated at 1.158 billion yuan, 1.449 billion yuan, and 1.795 billion yuan, respectively, with corresponding P/E ratios of 40, 32, and 26 [4][6].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong potential for stock price appreciation in the next six months [3][15]. Core Insights - The company achieved a revenue of 3.885 billion yuan in 2024, representing a growth of 34.61% year-on-year, with a net profit attributable to the parent company of 881 million yuan, up 33.04% [9][10]. - The growth in revenue is driven by both makeup and skincare segments, with makeup revenue reaching 2.304 billion yuan, accounting for 59.31% of total revenue, and skincare revenue at 1.429 billion yuan, representing 36.78% [2][10]. - The company is expanding its presence in high-end department stores and has increased its number of self-operated counters to 378, with a steady expansion pace across over 120 cities [10][12]. Financial Summary - Revenue projections for the company are as follows: 5.224 billion yuan in 2025, 6.754 billion yuan in 2026, and 8.460 billion yuan in 2027, with corresponding net profits of 1.183 billion yuan, 1.525 billion yuan, and 1.939 billion yuan respectively [3][15]. - The company’s earnings per share (EPS) are projected to be 2.41 yuan in 2025, 3.11 yuan in 2026, and 3.96 yuan in 2027 [3][15]. - The company maintains a high gross margin of 84.37% in 2024, with a net profit margin of 22.67% [12][15]. Market Position and Strategy - The company is recognized as the only domestic high-end makeup brand, with strong brand and product recognition among high-net-worth clients [3][15]. - The strategy includes expanding product lines, increasing the number of counters, and enhancing consumer penetration, which is expected to provide significant long-term growth opportunities [3][15]. - The company has successfully entered the Hong Kong market, further enhancing its brand presence [10][12].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [6]. Core Insights - The company achieved a revenue of 3.885 billion RMB in 2024, representing a year-on-year growth of 34.6%, and a net profit of 881 million RMB, up 32.8% year-on-year [1][2]. - The strong growth momentum in the color cosmetics and skincare segments is highlighted, with the makeup art training business growing by 45.78% year-on-year [2]. - The company is recognized as a leading player in the high-end beauty market in China, with robust performance in color cosmetics and rapid growth in skincare [4]. Revenue Breakdown - In 2024, product sales accounted for 3.733 billion RMB, a 34.19% increase year-on-year, with color cosmetics generating 2.304 billion RMB (up 42.03%) and skincare products 1.429 billion RMB (up 23.21%) [2]. - The makeup art training and related sales generated 152 million RMB, reflecting a 45.78% increase, driven by a rise in participants [2]. Channel Performance - Offline sales reached 1.949 billion RMB, a 21.64% increase, while online sales surged to 1.784 billion RMB, marking a 51.23% growth [3]. - The company’s sales channels include self-operated counters, sales to a high-end multinational beauty retailer, and online platforms such as Tmall and Douyin [3]. Profitability Metrics - The gross margin for 2024 was 84.4%, with a net profit margin of 22.69%, showing a slight decrease of 0.3 percentage points year-on-year [4]. - The company’s selling expense ratio was 49.01%, reflecting increased investment in brand promotion and channel development [4]. Future Projections - The company is expected to achieve net profits of 1.12 billion RMB, 1.41 billion RMB, and 1.76 billion RMB for 2025, 2026, and 2027, respectively, with growth rates of 27.0%, 26.0%, and 24.9% [4][6]. - The estimated P/E ratios for 2025, 2026, and 2027 are projected to be 42X, 34X, and 27X, respectively [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company has shown impressive performance in 2024, with strong growth in high-end cosmetics, indicating that domestic brands are becoming increasingly competitive [4][7] - The company is expanding its high-end retail channels and has successfully entered several prestigious department stores, enhancing its market presence [7] - The product portfolio has been significantly enriched, with over 100 new items developed in 2024, reflecting a commitment to innovation and brand elevation [7] Financial Performance Summary - Revenue for 2024 is projected at RMB 3,884.69 million, representing a year-on-year growth of 34.6% [6] - Net profit for 2024 is expected to reach RMB 880.6 million, with a year-on-year increase of 33.0% [6] - The company anticipates continued growth in net profit, with projections of RMB 1,298.2 million in 2025, RMB 1,665.9 million in 2026, and RMB 2,044.5 million in 2027, reflecting growth rates of 47.4%, 28.3%, and 22.7% respectively [6][7] Market Performance - The company has successfully established over 378 self-operated counters and 31 dealer counters across more than 120 cities in China, enhancing its distribution network [7] - The loyalty program has attracted a total of 10.3 million online and 15.1 million offline registered members, with improved repurchase rates [7] Profitability Metrics - The gross margin for 2024 is projected at 84.4%, with a slight decrease of 0.5 percentage points year-on-year [7] - The return on equity (ROE) is expected to be 25.2% in 2024, indicating strong profitability [6][9]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [2][6]. Core Insights - The company reported a revenue of 3.88 billion RMB for 2024, reflecting a year-on-year growth of 35%, and a net profit of 0.88 billion RMB, which is a 33% increase [6]. - The adjusted net profit for 2024 was 0.92 billion RMB, showing a significant year-on-year growth of 39% [6]. - The company is positioned strongly in the high-end domestic beauty market, with a focus on expanding its product lines, particularly in the fragrance segment [6]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 2.886 billion RMB - 2024: 3.885 billion RMB - 2025E: 5.173 billion RMB - 2026E: 6.852 billion RMB - 2027E: 8.533 billion RMB - The corresponding net profit forecasts are: - 2023: 0.662 billion RMB - 2024: 0.881 billion RMB - 2025E: 1.184 billion RMB - 2026E: 1.542 billion RMB - 2027E: 1.953 billion RMB - The company expects a compound annual growth rate (CAGR) of 34% for net profit from 2025 to 2027 [5][6][7]. Revenue Breakdown - The revenue breakdown by product category for 2024 shows: - Makeup revenue: 2.304 billion RMB (42% increase), accounting for 59.3% of total revenue - Skincare revenue: 1.429 billion RMB (23.2% increase), accounting for 36.8% - Training revenue: 0.152 billion RMB (45.8% increase), accounting for 3.9% [6]. - Online sales accounted for 47.8% of total revenue, with a year-on-year growth of 51.2% [6]. Brand Strength and Market Position - The company has expanded its offline presence to 409 counters, with a net increase of 25 in 2024, covering over 120 cities [6]. - The online sales performance on platforms like Douyin and Tmall has been strong, with significant growth in gross merchandise volume (GMV) [6]. - The overall repurchase rate increased to 30.9%, reflecting a 4.1 percentage point increase year-on-year [6]. Strategic Initiatives - The company is actively developing its fragrance product line, with several new products launched at premium price points [6]. - The report highlights the company's unique positioning in the high-end market, leveraging its professional makeup artist brand image to enhance pricing power and market share [6].

Investment Rating - The investment rating for the company is "Buy" and is maintained [2] Core Insights - The company reported a revenue of 3.885 billion yuan in 2024, representing a year-over-year growth of 34.6%, with a net profit of 881 million yuan, also showing a growth of 33.0% [4] - The company has demonstrated strong online growth, improved member repurchase rates, and maintained high net profit margins [5] - The company is expected to continue its growth trajectory with projected net profits of 1.201 billion yuan, 1.532 billion yuan, and 1.928 billion yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 43x, 34x, and 27x [6] Financial Performance - In 2024, the company's revenue from cosmetics, skincare, and training was 2.3 billion yuan, 1.4 billion yuan, and 150 million yuan respectively, with year-over-year growth rates of 42%, 23%, and 46% [5] - The gross margin for the company in 2024 was 84.4%, a slight decrease of 0.5 percentage points year-over-year, primarily due to increased logistics costs [6] - The company plans to expand its store presence and has a total of 409 counters by the end of 2024, with a net increase of 25 counters [5] Revenue Projections - The projected revenue for the company is 5.212 billion yuan in 2025, 6.687 billion yuan in 2026, and 8.455 billion yuan in 2027, with growth rates of 34.17%, 28.30%, and 26.43% respectively [8] - The expected EBITDA for the company is 1.533 billion yuan in 2025, 1.956 billion yuan in 2026, and 2.451 billion yuan in 2027 [8] Profitability Metrics - The company's net profit margin is projected to be 22.7% in 2024, with a slight increase in adjusted net profit margin to 23.8% [6] - The earnings per share (EPS) is expected to be 2.45 yuan in 2025, 3.13 yuan in 2026, and 3.93 yuan in 2027 [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [2][6] Core Insights - The company reported a revenue of 3.885 billion yuan for 2024, representing a year-over-year growth of 34.6%, with a net profit attributable to shareholders of 881 million yuan, also up by 33.0% [4][5] - The online sales showed significant growth, with a 51% increase year-over-year, while offline sales grew by 22% [5] - The company maintains a high net profit margin of 22.7% despite a slight decline in gross margin due to increased logistics costs [6] Financial Performance - For 2024, the company expects revenues to reach 5.212 billion yuan, with a growth rate of 34.17% [8] - The projected net profit for 2025 is 1.202 billion yuan, reflecting a growth rate of 36.36% [9] - The company's gross margin is forecasted to be 84.24% in 2025, slightly decreasing from 84.37% in 2024 [9] Revenue Breakdown - In 2024, the revenue from makeup, skincare, and training segments is expected to be 2.3 billion yuan, 1.4 billion yuan, and 150 million yuan, respectively, with growth rates of 42%, 23%, and 46% [5] - The average selling price for makeup increased by 6%, while skincare saw a decrease of 3% [5] Membership and Repurchase Rates - The repurchase rate for online and offline channels in 2024 is projected to be 27.5% and 34.9%, respectively, showing an increase of 5.5 percentage points and 2.1 percentage points year-over-year [5] Future Outlook - The company plans to continue expanding its store network and introduce new products, with a focus on international markets, indicating significant growth potential [6] - The forecasted net profit for 2027 is expected to reach 1.93 billion yuan, with a corresponding price-to-earnings ratio of 27 times [6][8]