Core Viewpoint - The company, Mao Ge Ping (01318), has received a filing notice from the China Securities Regulatory Commission (CSRC) regarding the implementation of full circulation of H-shares, effective from January 13, 2026 [1] Group 1 - The company has completed the filing for a total of 228 million unlisted shares to implement H-share full circulation [1] - The filing notice is valid for 12 months from January 13, 2026 [1] - The company plans to apply to the Stock Exchange of Hong Kong for approval of the related H-share listing and trading [1]

Core Viewpoint - The company has received a filing notice from the China Securities Regulatory Commission regarding the implementation of full circulation of H-shares, effective from January 13, 2026 [1] Group 1 - The company has completed the filing for a total of 228 million unlisted shares for H-share full circulation with the China Securities Regulatory Commission [1] - The filing notice is valid for 12 months starting from January 13, 2026 [1] - The company plans to apply for approval from the Stock Exchange of Hong Kong for the listing and trading of the relevant H-shares [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 MAO GEPING COSMETICS CO., LTD. 毛戈平化妝品股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：1318） 內幕消息公告 中國證監會就本公司H股全流通出具備案通知書 本 公 告 由 毛 戈 平 化 妝 品 股 份 有 限 公 司（「本公司」，連 同 其 附 屬 公 司，統 稱 「本集團」）根 據 香 港 法 例 第571章證券及期貨條例第XIVA部項下內幕消息 條 文（「內幕消息條文」）及 香 港 聯 合 交 易 所 有 限 公 司（「聯交所」）證 券 上 市 規 則（「上市規則」）第13.09(2)(a)條 而 作 出。 截 至 本 公 告 日 期，H股全流通及轉換及上市的實施計劃詳情尚未最終確 定。本 公 司 將 根 據 內 幕 消 息 條 文 ...

Core Viewpoint - The recent announcement of a collective share reduction by the founding family of Maogeping, just after the end of the lock-up period post-IPO, raises concerns about the company's future growth potential and investor confidence [1][4][5]. Group 1: Share Reduction Announcement - Maogeping's announcement on January 6 revealed that six core executives, including the founder and family members, plan to reduce their holdings by up to 17.2 million shares, representing 3.51% of the total share capital, potentially raising approximately HKD 1.41 billion at the closing price of HKD 82 per share [1][4]. - The family and concerted parties hold over 67% of the shares, and even after the reduction, their stake will remain around 63.5% [4]. Group 2: Financial Performance and Concerns - In 2024, Maogeping reported revenue of RMB 3.885 billion, a year-on-year increase of 34.61%, but this growth rate significantly declined from 57.8% in 2023, indicating potential issues with growth engines [7]. - The company's R&D expenditure was only RMB 15.257 million, accounting for just 0.59% of revenue, while sales and distribution expenses were RMB 1.169 billion, making up 45.2% of total revenue [7][9]. Group 3: Market Position and Competitive Landscape - The beauty industry is experiencing intense competition, with a trend of "price for volume" leading to a 7.2% decrease in average selling prices for color cosmetics in 2025, while sales volume increased by 14.5% [9][10]. - Maogeping's flagship brand relies heavily on the founder's personal brand, which poses risks as the founder approaches retirement age and faces changing consumer perceptions [12][14]. Group 4: Governance and Future Outlook - The family-centric governance structure raises concerns about talent retention and employee confidence, as the collective share reduction may signal a lack of faith in the company's long-term prospects [15]. - The company's reliance on a single IP for revenue and the underperformance of its second brand, "Zhi Ai Zhong Sheng," which has seen declining sales, highlight the challenges in diversifying its business model [12][14].

Core Viewpoint - Morgan Stanley's report indicates that Maogeping (01318) management's share reduction plan is expected to alleviate investor concerns regarding the expiration of the lock-up period in December 2025, leading to a slight adjustment in profit forecasts for 2025 to 2027 and an increase in target price from HKD 128 to HKD 130, maintaining a "Buy" rating and positioning Maogeping as a preferred stock in the Chinese beauty sector [1] Group 1 - The company is projected to have robust growth visibility in 2026 due to its optimal positioning in the experiential consumption trend, clear store network expansion plans, and increasing brand awareness [1] - The product line is meticulously designed to cater to Chinese facial features and aesthetics, with ongoing diversification in retail experiences [1] - A recent strategic partnership with L Catterton is expected to provide opportunities for overseas expansion and potential acquisitions [1] Group 2 - Sales and profit for Maogeping are anticipated to grow by 29% and 30% respectively in 2026, with a compound annual growth rate (CAGR) of 35% and 39% for sales and profit from 2021 to 2024, significantly outpacing industry averages of 19% and 11%, and far exceeding the retail sector's growth rate of 3% [1]

Group 1 - The core viewpoint of the article is that Morgan Stanley's report indicates that Maogeping's (01318) management share reduction plan is expected to alleviate investor concerns regarding the expiration of the lock-up period in December 2025 [1] - The company’s earnings forecast for 2025 to 2027 has been slightly adjusted by 0% to 2%, with the target price raised from HKD 128 to HKD 130, maintaining a "Buy" rating and positioning Maogeping as a preferred stock in the Chinese beauty sector [1] - The report highlights that Maogeping is well-positioned for steady growth in 2026 due to its alignment with experiential consumption trends, clear store network expansion plans, increasing brand awareness, and a product line designed for Chinese facial features and aesthetics [1] Group 2 - The strategic partnership with L Catterton is expected to provide opportunities for overseas expansion and potential acquisitions [1] - Sales and profits for Maogeping are projected to grow by 29% and 30% respectively in 2026, while the annual compound growth rates for sales and profits from 2021 to 2024 are expected to be 35% and 39%, significantly higher than the industry averages of 19% and 11% [1] - The retail industry growth rate is noted to be only 3%, indicating that Maogeping is outperforming its peers and the broader retail sector [1]

Core Viewpoint - The recent "family-style" share reduction by Maogeping (01318.HK) has attracted significant attention, with major shareholders planning to sell up to 17.2 million H-shares, representing 3.51% of the company's total issued shares, primarily for personal financial needs [2][3] Share Reduction Details - Major shareholders, including Maogeping and family members, will reduce their holdings through block trades, potentially raising approximately HKD 1.41 billion based on a share price of HKD 82 [2] - The shareholders' stated reasons for the reduction include investments in the beauty industry and personal financial improvements, although the company clarified that these needs vary among shareholders [3] Company Background and Challenges - Maogeping has faced challenges in its listing journey, having submitted IPO applications to the A-share market three times since 2016 without success, before finally listing on the Hong Kong Stock Exchange in 2024 [3][4] - The company has previously distributed significant dividends totaling HKD 1 billion before its IPO, and the family has reportedly realized over HKD 2 billion from dividends and share reductions in the past two years [4] Strategic Partnership - The company has signed a strategic cooperation framework agreement with LVMH's subsidiary, L Catterton, to enhance global market expansion, acquisitions, and capital structure optimization [5] - This partnership aims to leverage L Catterton's investment capabilities to assist Maogeping in expanding its high-end retail channels internationally [5][6] Market Outlook - Analysts from CITIC Securities and Haitong International Securities have expressed optimism about Maogeping's potential for international expansion and brand penetration in high-end markets, viewing the strategic partnership as a significant step towards globalization [6]

Group 1 - The 2025 Chinese capital market is characterized by the rise of new players amidst deep adjustments in traditional industries, highlighting a trend where both veteran leaders and new generations must embrace innovation and risk management to thrive [13][12] - Notable figures in the capital market include Zhu Jiusheng, Lei Jun, Wang Chuanfu, and others, whose experiences reflect personal turning points and broader industry cycles [13] - The ongoing power struggle within the Double Star Group, marked by the founder's public declaration to sever ties with his son, exposes governance crises and challenges for the century-old brand [14] Group 2 - The 毛戈平 family plans to cash out over 1.4 billion HKD through a collective share reduction, indicating significant financial maneuvers within the company [15] - Huawei and GAC Group have signed a comprehensive cooperation framework agreement to jointly innovate in areas like AI and smart vehicles, aiming to enhance competitiveness in the global automotive market [18] - The real estate sector is entering a critical transformation phase, with experts emphasizing the need for policies that stabilize market expectations and improve conditions for second-hand housing [19] Group 3 - The appointment of seasoned executives at 招商银行 reflects a strategy focused on stability and internal talent development, as the bank promotes experienced individuals to its leadership team [24] - The recent passing of Liu Hui, a prominent fund manager at 银华基金, marks a significant loss for the investment community, highlighting the impact of individual contributions to the industry [25]

Company Updates - The company announced a strategic partnership with LVMH's subsidiary, Ruway Keten, to enhance global market expansion, acquisitions, strategic investments, capital structure optimization, talent introduction, and governance [1] - The company organized a Hong Kong investor open day, showcasing a robust pipeline of new products and a continued focus on high-end retail coverage, with initial success in international markets [1] Strategic Cooperation - The collaboration with Ruway Keten aims to leverage its global investment network to assist the company's brands in expanding overseas high-end retail channels [1] - Both parties plan to establish a private equity investment fund focused on the global high-end beauty sector, which is expected to facilitate group and global development, opening long-term growth opportunities [1] Management Shareholding - The company announced a share reduction plan by major shareholders and management, intending to reduce up to 3.51% of the total issued shares within six months to address personal financial needs [1] - This clear cap on share reduction is expected to stabilize market expectations and reflects management's confidence in the company's long-term development [1] Product Development and Market Position - The company has a strong pipeline of new products, with the launch of the skincare series "Liu Guang Fu Huo" set for late December and positive market feedback for the new color of the Air Warehouse Lip Glaze [2] - Brand building efforts include the release of a documentary series related to the Belt and Road Initiative and a themed fashion show, alongside successful sales of limited-edition gift boxes inspired by traditional Chinese culture [2] - The company continues to deepen its presence in high-end retail locations, with successful store performance in Hong Kong and Hangzhou, indicating initial success in international expansion [2] Financial Forecast and Valuation - The company maintains its profit forecast for 2025-2026 and introduces a net profit estimate of 1.76 billion yuan for 2027, with the current stock price corresponding to a P/E ratio of 26/21x for 2026/2027 [2] - The company maintains an outperform rating and a target price of 127 HKD, implying a 47% upside potential based on a P/E ratio of 38/31x for 2026/2027 [2]

Group 1 - The company announced a voluntary share reduction plan by its major shareholders, who intend to reduce up to 3.51% of the total issued shares within six months, primarily through block trading [1] - The proceeds from the share reduction will be used for investments in the beauty-related industry chain and personal lifestyle improvements, while the major shareholders express confidence in the company's development and commitment to product R&D and operational management [1] Group 2 - The company signed a strategic cooperation framework agreement with L Catterton Asia Advisors, focusing on global market expansion, acquisitions, strategic investments, capital structure optimization, talent acquisition, and governance [2] - L Catterton, a leading global consumer investment firm managing approximately $39 billion in equity capital, will assist the company in expanding its high-end retail channels overseas and jointly establish a private equity fund focused on the global high-end beauty sector [2] Group 3 - Based on the company's strong sales performance in both online and offline channels, the projected net profit for the years 2025-2027 is estimated to be 1.21 billion, 1.58 billion, and 2.03 billion yuan, representing year-on-year growth of 38%, 30%, and 28% respectively [3] - The company is recognized as a domestic high-end cosmetics brand with a strong founder IP, steady growth in skincare and makeup categories, and significant advantages in both online and offline channels, indicating a high certainty of future performance growth [3]