Core Viewpoint - The report from Huachuang Securities projects that Maogeping (01318) will achieve a net profit of 1.19 billion, 1.53 billion, and 1.94 billion yuan for the years 2025 to 2027, with a compound annual growth rate of 27.5% over three years, leading to a target price of 124.4 HKD and a "strong buy" rating [1] Financial Performance - In the first half of 2025, the company reported a revenue of 2.59 billion yuan, a year-on-year increase of 31.3%, and a net profit of 670 million yuan, up 36.1%, meeting market expectations [1] - The gross margin for the first half of 2025 was 84.2%, a decrease of 0.7 percentage points, while the net profit margin was 25.9%, an increase of 0.9 percentage points [2] Cost Management - The sales and management expense ratios were 45.2% and 5.3%, respectively, showing a decrease of 2.4 percentage points and 1.5 percentage points [2] - Despite an increase in marketing and promotional expenses to 540 million yuan, the company effectively controlled the sales expense ratio, contributing to the improvement in net profit margin [2] Revenue Breakdown by Product Category - The revenue composition by brand shows 55% from color cosmetics, 42% from skincare, 3% from makeup artistry training, and 0.4% from fragrances [2] - Color cosmetics generated 1.42 billion yuan in revenue, up 31%, with a gross margin of 82.7% [2] - Skincare revenue reached 1.09 billion yuan, a 33% increase, with a gross margin of 87.5% [2] Revenue Breakdown by Channel - Revenue by channel indicates 47% from offline sales and 50% from online sales [3] - Offline revenue was 1.22 billion yuan, a 27% increase, with a gross margin of 85.7% [3] - Online revenue reached 1.297 billion yuan, up 39%, with a gross margin of 83.9% [3] Brand Development and Market Positioning - The company has expanded into the fragrance market with the launch of two high-end perfume series, enhancing its brand image and positioning [4] - The opening of a flagship store in a core business district of Hangzhou and entry into high-end department stores like Beijing SKP further solidifies the brand's high-end positioning [4] Future Growth Potential - The company has significant room for SKU expansion and improvement in store efficiency, which is expected to drive future growth [4] - The dual-channel strategy of online and offline sales is showing healthy collaborative growth, with the potential for continued momentum [5]

Core Viewpoint - The report from Huachuang Securities projects that Maogeping (01318) will achieve net profits of 1.19 billion, 1.53 billion, and 1.94 billion yuan for the years 2025 to 2027, with a compound annual growth rate of 27.5% over three years, leading to a target price of 124.4 HKD and a "strong buy" rating [1] Financial Performance - In the first half of 2025, the company reported a revenue of 2.59 billion yuan, a year-on-year increase of 31.3%, and a net profit of 670 million yuan, up 36.1%, meeting market expectations [2] Profitability - The gross margin for the first half of 2025 was 84.2%, a decrease of 0.7 percentage points, while the net profit margin was 25.9%, an increase of 0.9 percentage points. The sales and management expense ratios were 45.2% and 5.3%, respectively, showing a decrease of 2.4 percentage points and 1.5 percentage points [3] Business Segmentation by Brand - Revenue breakdown shows 55% from color cosmetics, 42% from skincare, 3% from makeup artistry training, and 0.4% from fragrances. Specifically, color cosmetics generated 1.42 billion yuan (+31%) with a gross margin of 82.7%, skincare brought in 1.09 billion yuan (+33%) with a gross margin of 87.5%, makeup artistry training earned 70 million yuan with a gross margin of 62.9%, and fragrances generated 11 million yuan with a gross margin of 77.6% [4] Business Segmentation by Channel - Revenue distribution indicates 47% from offline sales and 50% from online sales. Offline revenue was 1.22 billion yuan (+27%) with a gross margin of 85.7%, while online revenue reached 1.297 billion yuan (+39%) with a gross margin of 83.9% [5] Brand Development - The company has expanded into the fragrance market with the launch of two high-end perfume series, "Guoyun Ningxiang" and "Wendao Dongfang." It is also enhancing its brand image by opening flagship stores in key urban areas and entering high-end department stores, indicating a strong commitment to high-end brand positioning [6] Investment Recommendation - As a benchmark for high-end domestic cosmetics, the company has a strong brand moat and is experiencing steady growth driven by both color cosmetics and skincare. The successful expansion into fragrances demonstrates potential for multi-category development. The rapid growth of online channels and the strengthening of offline channels through experiential services indicate a healthy dual-channel synergy [7]

Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [4][17]. Core Insights - The company demonstrated impressive performance in the first half of 2025, with revenue increasing by 31.3% year-on-year to 2.59 billion and net profit rising by 36.1% to 670 million, aligning with market expectations [1][9]. - The company is expanding its product categories, particularly in the fragrance segment, and has successfully launched high-end perfume series, enhancing its brand positioning [9]. - The dual-channel strategy (online and offline) is showing robust growth, with online sales increasing by 39% and offline sales by 27%, indicating a healthy synergy between the two channels [9]. Financial Performance Summary - Revenue projections for the upcoming years are as follows: 2024A at 3.885 billion, 2025E at 5.142 billion, 2026E at 6.588 billion, and 2027E at 8.273 billion, with respective growth rates of 34.6%, 32.4%, 28.1%, and 25.6% [3][11]. - The net profit is expected to grow from 881 million in 2024A to 1.936 billion in 2027E, with growth rates of 33.0%, 35.3%, 28.2%, and 26.8% [3][11]. - The company maintains a strong gross margin of 84.2% and a net margin of 25.9% in the first half of 2025, reflecting stable profitability [9]. Business Segmentation - Revenue breakdown shows 55% from color cosmetics, 42% from skincare, 3% from makeup artistry training, and 0.4% from fragrances [9]. - The offline sales contribute 47% of total revenue, while online sales account for 50%, showcasing a balanced distribution between channels [9]. Future Growth Potential - The company has significant room for SKU expansion, currently at approximately 400 SKUs, particularly in lip, eye, and foundation products [9]. - The report highlights the potential for improved store efficiency compared to international brands, suggesting ongoing growth opportunities [9].

Core Viewpoint - The Hong Kong stock market is witnessing a strong performance in new consumer stocks, with significant gains observed in several companies [1] Group 1: Company Performance - Mixue Group saw a rise of 9.07%, reaching a latest price of 409.000 and a total market capitalization of 155.264 billion, with a year-to-date increase of 101.98% [2] - Gu Ming experienced a 4.35% increase, with a latest price of 21.600 and a market cap of 51.369 billion, marking a year-to-date rise of 117.30% [2] - Miniso recorded a 3.55% gain, with a latest price of 43.800 and a market cap of 53.51 billion, although it has seen a year-to-date decline of 4.47% [2] - Guoquan increased by 3.24%, with a latest price of 3.190 and a market cap of 8.454 billion, reflecting a year-to-date rise of 79.23% [2] Group 2: Other Notable Companies - NIO-SW rose by 1.50%, with a latest price of 61.000 and a market cap of 150.315 billion, showing a year-to-date increase of 75.29% [2] - Mao Geping saw a 1.18% increase, with a latest price of 102.900 and a market cap of 50.447 billion, reflecting a year-to-date rise of 79.04% [2] - Bubble Mart experienced a slight increase of 0.47%, with a latest price of 256.000 and a market cap of 343.793 billion, showing a significant year-to-date increase of 188.41% [2]

| 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01318 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 261,842,300 | RMB | | 0.5 RMB | | 130,921,150 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 261,842,300 | RMB | | 0.5 RMB | | 130,921,150 | | 2. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | - | 說明 | 未上市內資股 | | | ...

Core Viewpoint - Huogeping (01318) is projected to achieve significant revenue growth from 2025 to 2027, with a "buy" investment rating maintained by Huaxin Securities [1] Financial Performance - For the first half of 2025, Huogeping reported revenue of 2.588 billion RMB, a year-on-year increase of 31.3% [1] - The net profit for the same period was 670 million RMB, reflecting a year-on-year growth of 36.1% [1] - The company's gross margin stood at 84.2%, while the net margin was 25.9%, indicating strong profitability [1] Business Segments - The main growth drivers for Huogeping are the makeup and skincare segments, with makeup revenue reaching 1.422 billion RMB, up 31.1% year-on-year [1] - Skincare revenue was 1.087 billion RMB, showing a year-on-year increase of 33.4% [1] - Huogeping has also expanded into the fragrance category, launching two high-end perfume series, generating revenue of 11.413 million RMB [1] Strategic Decisions - The decline in revenue from the makeup artistry training business is a strategic decision aimed at improving service quality by controlling enrollment size [1] - Overall, Huogeping's performance in the first half of the year demonstrates its strong competitive position in the high-end beauty market [1]

Core Viewpoint - Huaxin Securities predicts that Mao Geping (01318) will achieve revenues of 50.83 billion, 64.98 billion, and 82.45 billion RMB for the years 2025 to 2027, with corresponding EPS of 2.36, 3.00, and 3.81 RMB, maintaining a "Buy" investment rating [1] Financial Performance - In the first half of 2025, Mao Geping reported operating revenue of 25.88 billion RMB, a year-on-year increase of 31.3% [1] - The net profit for the same period was 6.70 billion RMB, reflecting a year-on-year growth of 36.1% [1] - The company's gross margin stood at 84.2%, while the net profit margin was 25.9%, indicating strong profitability [1] Business Segments - The main growth drivers for the company are the makeup and skincare segments, with makeup revenue reaching 14.22 billion RMB, up 31.1% year-on-year, and skincare revenue at 10.87 billion RMB, increasing by 33.4% [1] - Mao Geping has also expanded into the fragrance category, launching two high-end perfume series, "Guoyun Ningxiang" and "Wendao Dongfang," generating revenue of 11.41 million RMB [1] - Although revenue from the makeup artistry training business has declined, the company stated this was a strategic decision to enhance service quality by controlling enrollment size [1]

Investment Rating - The report maintains a "Buy" investment rating for the company [1][8]. Core Insights - The beauty industry is experiencing significant export trends, with the company, 毛戈平, making substantial progress in its global layout [1]. - In the first half of 2025, the company achieved a revenue of 2.588 billion RMB, representing a year-on-year growth of 31.3%, and a net profit of 670 million RMB, up 36.1% year-on-year [6]. - 毛戈平 plans to enter Hong Kong's Harbour City in October 2025, enhancing its high-end offline global presence [5]. Summary by Sections Market Performance - The Chinese cosmetics industry is witnessing a strong trend towards internationalization, with a total export value of 18.71 billion RMB in the first half of 2025, a year-on-year increase of 11.97% [4]. - Southeast Asia is a key market for Chinese beauty brands, projected to reach a market size of 34.55 billion USD by 2027, growing at an annual rate of 3.57% [4]. Company Developments - 毛戈平's offline sales in the first half of 2025 grew approximately 18%, significantly outperforming the industry average [5]. - The company has established 378 self-operated counters and 31 dealer counters across 120 cities in China, employing over 2,800 professional beauty consultants [5]. Financial Performance - 毛戈平's gross margin stands at 84.2%, with a net margin of 25.9%, indicating strong profitability [6]. - The company forecasts revenues of 5.083 billion RMB, 6.498 billion RMB, and 8.245 billion RMB for 2025, 2026, and 2027 respectively, with corresponding EPS of 2.36, 3.00, and 3.81 RMB [8].

Company Overview - The company has successfully extended its product categories, launching new skincare and makeup products in Q3, with positive market feedback for the new fragrance line [1] - The skincare product matrix continues to expand, with the introduction of the "Fire Spark Source" series aimed at addressing early aging issues for Oriental skin types [1] - The company is focusing on high-end positioning and has made significant progress in both offline and online channels, indicating strong brand momentum [2] Product Development - The skincare line includes serums and creams, with the launch of the "Black Gold Water" and the "Fire Spark Source" series, which includes anti-aging products [1] - In makeup, new color products have been introduced, including the "Starry Sky Eyeshadow" and earth-tone eyeshadows [1] - The fragrance line saw the launch of 13 new products in May, which have been well-received in the market [1] Channel Strategy - The company has entered high-end retail locations, with plans for new counters in major cities, showing strong same-store sales growth of approximately 18% in 1H25 [2] - Online sales have also been robust, with a combined GMV growth of 47% on Tmall and Douyin in July and August [2] International Expansion - The company is expanding its brand internationally, having entered Hong Kong's Sephora and planning to open its first counter in Harbour City in October [2] - Future expansion plans include Southeast Asia, Japan, and Europe starting in 2026, indicating a long-term growth strategy [2] Financial Outlook - The company maintains its profit forecast for 2025-2026, with current stock price corresponding to a P/E ratio of 41x for 2025 and 31x for 2026 [2] - The target price is set at 127 yuan, reflecting a potential upside of 22.5% based on projected P/E ratios [2]

Core Viewpoint - The company maintains its profit forecast for 2025-2026, with the current stock price corresponding to a P/E ratio of 41x for 2025 and 31x for 2026, indicating a target price of HKD 127, which represents a 22.5% upside potential [1] Product Development - The skincare product matrix continues to expand, with positive market feedback for new perfume products. The company is building its brand identity around Eastern aesthetics, facilitating successful category extensions [2] - Skincare: The product matrix is enriched with serums and creams, with the launch of the black gold water in 1H25 and the new spark root series in September, targeting anti-aging solutions for Eastern skin types [2] - Makeup: The color product line is being enhanced, with the launch of the starry sky eyeshadow in 1H25 and earth-tone eyeshadows in Q3 [2] - Perfume: 13 new products were launched in May, with continued high demand in July and August, indicating strong market reception [2] Channel Expansion - Offline: The company has successfully entered high-end retail locations, with plans for further expansion in 2H25, including a new counter in Hangzhou and ongoing planning for Shenzhen and other locations. Same-store sales growth of approximately 18% in 1H25 outperformed the offline market average [3] - Online: The company has maintained a balanced structure in self-broadcasting and influencer marketing, achieving a 47% year-on-year increase in GMV on Tmall and Douyin from July to August, indicating successful outreach to younger demographics [3] International Expansion - The company has entered the Hong Kong market with a presence in Sephora and plans to open its first counter in Harbour City, Hong Kong, in October. There are expectations to expand into Southeast Asia, Japan, and Europe starting in 2026, highlighting the company's growth potential as a rare high-end domestic beauty brand [4]