Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a revenue of 2.59 billion yuan for H1 2025, representing a year-on-year growth of 31.3%. The net profit attributable to shareholders was 670 million yuan, up 36.1% year-on-year. The adjusted profit reached 672 million yuan, with a growth of 32% and an adjusted profit margin of 26% [2][4]. Summary by Sections Revenue Breakdown - In H1 2025, the revenue from different product categories was as follows: makeup 1.42 billion yuan, skincare 1.09 billion yuan, fragrance 11 million yuan, and training schools 67 million yuan, with year-on-year growth rates of +31%, +33%, no growth for fragrance, and -6% for training schools. Excluding training schools, total product sales grew by 32.7% [5]. Product Performance - Within the makeup category, the base makeup segment performed strongly, with retail sales of caviar cushion and light sensation powder exceeding 200 million yuan each. The skincare segment saw classic products like caviar masks achieving retail sales of over 600 million yuan (up 33% year-on-year) and black cream exceeding 200 million yuan. New high-end products are being introduced steadily [5]. Channel Performance - Online sales continued to grow significantly, with revenues of 1.3 billion yuan (up 39% year-on-year), while offline sales reached 1.22 billion yuan (up 27% year-on-year). The repurchase rates improved by 2.6 percentage points for online and 1.6 percentage points for offline channels [5]. Profitability - The net profit margin for H1 2025 reached 26%, an increase of 0.9 percentage points year-on-year. This was attributed to a 0.7 percentage point decline in gross margin, primarily due to lower margins in makeup and training schools, and a significant optimization in expense ratios [5]. Future Outlook - The company is expected to maintain a clear growth trend in the short to medium term, driven by a robust pipeline of mid-tier products, high elasticity in e-commerce channels, and continuous improvement in offline store efficiency. The long-term potential includes category expansion, collaboration with more high-end brands, and international market entry [5]. The projected adjusted net profits for 2025-2027 are 1.25 billion, 1.57 billion, and 1.92 billion yuan, with corresponding P/E ratios of 35.9, 28.4, and 23.3 times [5].

Core Insights - The company reported a revenue of RMB 2.588 billion for the first half of 2025, representing a year-on-year increase of 31.3% [1] - Net profit reached RMB 670 million, up 36.1% year-on-year, with adjusted net profit at RMB 672 million, reflecting a 32.0% increase [1] - Gross margin stood at 84.2%, down 0.7 percentage points year-on-year, while net margin improved to 25.9%, up 0.9 percentage points, primarily due to a decrease in sales expense ratio [1] Product Category Performance - **Makeup**: Revenue for the first half of 2025 was RMB 1.42 billion, a 31.1% increase year-on-year, with volume and price changes of +37% and -4% respectively. Key products like luxury caviar cushion and soft-focus powder both exceeded RMB 200 million in GMV [1] - **Skincare**: Revenue reached RMB 1.09 billion, up 33.4% year-on-year, with volume and price changes of +32% and +1% respectively. Star products like caviar masks and black cream achieved GMV of over RMB 600 million and RMB 200 million respectively, with the caviar mask growing over 33% [1] - **Fragrance**: The fragrance category generated RMB 11 million in its first year, with a gross margin of 77.6%, continuing the brand's high-end oriental aesthetic recognition [2] - **Training Business**: Revenue was RMB 67 million, down 5.9% year-on-year, due to controlled enrollment to enhance service quality and student satisfaction [2] Channel Performance - **Online Sales**: Revenue from online channels was RMB 1.3 billion, a 39.0% increase year-on-year, surpassing offline channels. The repurchase rate reached 24.1%, up 2.6 percentage points [2] - **Offline Sales**: Revenue from offline channels was RMB 1.22 billion, up 26.6% year-on-year, with same-store sales growth of 18%. The company had a total of 437 counters by the end of the first half of 2025, netting an increase of 27 self-operated and 1 distributor counter [2] Expense Management - The sales expense ratio improved to 45.2%, down 2.3 percentage points year-on-year, with marketing and promotional expenses growing by 23.9%, slower than revenue growth, indicating efficient operational capabilities [3] Profit Forecast - The company expects net profits for 2025, 2026, and 2027 to be RMB 1.22 billion, RMB 1.54 billion, and RMB 1.90 billion respectively, with year-on-year growth rates of 38.7%, 26.1%, and 23.4% [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [4]. Core Insights - The company reported a revenue of RMB 2.588 billion for the first half of 2025, representing a year-on-year increase of 31.3%, and a net profit of RMB 670 million, up 36.1% year-on-year [1]. - The gross margin stood at 84.2%, slightly down by 0.7 percentage points year-on-year, while the net profit margin improved by 0.9 percentage points to 25.9%, primarily due to a reduction in sales expense ratio [1]. - The company is experiencing strong growth across its core product categories, with makeup and skincare showing particularly robust performance [2][7]. Revenue Breakdown by Product Category - **Makeup**: Revenue reached RMB 1.42 billion in H1 2025, a 31.1% increase year-on-year, with significant contributions from flagship products [2]. - **Skincare**: Revenue was RMB 1.09 billion, up 33.4% year-on-year, with strong sales from key products [2]. - **Fragrance**: The fragrance category generated RMB 0.11 billion in its first year, with a gross margin of 77.6% [2]. - **Training Business**: Revenue declined to RMB 67 million, down 5.9% year-on-year, due to a strategic decision to limit enrollment for quality improvement [3]. Revenue Breakdown by Channel - **Online Sales**: Revenue from online channels was RMB 1.3 billion, a 39% increase year-on-year, surpassing offline sales for the first time [6]. - **Offline Sales**: Offline revenue reached RMB 1.22 billion, up 26.6% year-on-year, with a notable increase in same-store sales [6]. Financial Projections - The company expects net profits of RMB 1.22 billion, RMB 1.54 billion, and RMB 1.90 billion for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 38.7%, 26.1%, and 23.4% [7][8]. - Revenue projections for 2025, 2026, and 2027 are RMB 5.153 billion, RMB 6.485 billion, and RMB 7.826 billion, reflecting growth rates of 32.65%, 25.85%, and 20.66% [8].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 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 | ...

Core Viewpoint - The company Mao Geping (01318) has shown strong financial performance in the first half of the year, with significant increases in both revenue and net profit, indicating a positive growth trajectory in the high-end cosmetics market [1]. Financial Performance - In the first half of the year, Mao Geping achieved revenue of 2.588 billion yuan, representing a year-on-year increase of 31.28% [1]. - The net profit for the same period was 670 million yuan, reflecting a year-on-year growth of 36.11% [1]. Market Position and Strategy - According to Zheshang Securities, the company's high growth in performance is attributed to its high-end positioning and the rarity of Eastern aesthetic appeal [1]. - The company is recognized as a scarce high-end makeup brand in China, currently in a brand momentum rising phase, as noted by招商证券 [1]. - The product strategy includes driving sales through popular products and establishing a second-tier product matrix, while the channel strategy focuses on steady expansion of offline stores and strengthening online operations [1]. Growth Potential - The company has increased customer repurchase rates, indicating higher customer loyalty and suggesting significant growth potential in the future [1].

Core Viewpoint - The company Mao Geping (01318) has shown significant growth in its financial performance for the first half of the year, indicating strong market positioning and potential for further expansion [1] Financial Performance - In the first half of the year, Mao Geping achieved a revenue of 2.588 billion yuan, representing a year-on-year increase of 31.28% [1] - The net profit for the same period was 670 million yuan, reflecting a year-on-year growth of 36.11% [1] Market Positioning - According to Zheshang Securities, the company's high growth in performance is attributed to its high-end positioning and the rarity of Eastern aesthetics in the market [1] - The company is recognized as a scarce high-end makeup brand in China, currently in a brand momentum phase [1] Product and Channel Strategy - The company benefits from a product strategy that includes the development of blockbuster products and a second-tier product matrix [1] - There is a steady expansion of offline stores and a strengthening of online channel operations, which increases customer repurchase loyalty [1] - The brand is expected to have significant growth potential due to its multi-category and multi-channel collaborative efforts [1]

Group 1 - The event "Big Consumption Investment Summit and 2025 Zhitong Xingyao Autumn Joint Strategy Meeting" was held in Hangzhou, focusing on the theme "New Consumption Species: The Evolution of Hong Kong Stocks" [1] - In 2025, China's consumption market is witnessing a blend of tradition and innovation, with electric vehicle penetration exceeding 47%, smart home sales growing in double digits, and rural consumption growth outpacing urban by 0.8 percentage points [1] - The Hong Kong stock market is becoming a witness to consumer power, with a 100-fold subscription for consumer IPOs in the first half of the year and 71% of new stocks closing higher on their first day [1] Group 2 - The main venue will feature keynote speeches and roundtable discussions on trends, while the sub-venue will showcase opportunities from 30 top companies [2] - Keynote speakers include executives from Tencent, GF Securities, and various leading companies, sharing insights and practical experiences [4] - The sub-venue will host presentations from 30 leading companies, including China Duty Free Group, Maogeping, and others, focusing on their business opportunities [5]

毛戈平化妝品股份有限公司 Mao Geping Cosmetics Co., Ltd. （於中華人民共和國註冊成立的股份有限公司） 股份代號：1318 中期報告 2025 目 錄 | 公司資料 | 2 | | --- | --- | | 管理層討論及分析 | 4 | | 企業管治及其他事項 | 31 | | 獨立審閱報告 | 42 | | 中期簡明綜合損益及其他全面收益表 | 43 | | 中期簡明綜合財務狀況表 | 44 | | 中期簡明綜合權益變動表 | 46 | | 中期簡明綜合現金流量表 | 47 | | 中期簡明綜合財務資料附註 | 49 | | 釋義 | 62 | 顧炯先生 黃輝先生 李海龍先生 審計委員會 顧炯先生 （主席） 黃輝先生 李海龍先生 提名委員會 毛戈平先生 毛霓萍女士 顧炯先生 黃輝先生 李海龍先生 （主席） 公司資料 董事會 執行董事 毛戈平先生 （董事長） 汪立群女士 毛霓萍女士 毛慧萍女士 汪立華先生 宋虹佺女士 獨立非執行董事 薪酬委員會 毛戈平先生 毛慧萍女士 顧炯先生 黃輝先生 李海龍先生 （主席） 聯席公司秘書 董樂勤先生 張瀟女士 （香港公司治理公會及 英國特許公司 ...

Investment Rating - The report maintains an "Outperform" rating for Mao Geping Cosmetics, with a target price of HK$124.70, indicating a potential upside of 28.3% from the current price of HK$97.20 [2][8]. Core Insights - Mao Geping achieved a revenue of RMB 2.588 billion in 1H25, representing a year-on-year growth of 31.3%, with net profit attributable to the parent company reaching RMB 670 million, up 36.1% year-on-year [3][13]. - The company's gross margin for 1H25 was 84.2%, slightly down from the previous year, primarily due to costs associated with product upgrades and training services [3][14]. - Online sales surpassed offline sales for the first time, with online revenue growing by 39.0% year-on-year, while offline revenue increased by 26.6% [4][14]. - The company plans to expand its sales network by adding over 30 new offline stores annually and enhancing its online presence through effective marketing strategies [6][15]. Financial Performance - Revenue projections for 2025-2027 are estimated at RMB 5.155 billion, RMB 6.665 billion, and RMB 8.398 billion, with growth rates of 32.7%, 29.3%, and 26.0% respectively [8][18]. - Net profit forecasts for the same period are RMB 1.209 billion, RMB 1.505 billion, and RMB 1.859 billion, with growth rates of 37.3%, 24.6%, and 23.5% [8][18]. - The company’s diluted EPS is projected to increase from RMB 2.50 in 2025 to RMB 3.79 in 2027 [2][12]. Business Strategy - Mao Geping is focusing on enhancing its brand visibility through increased marketing and promotional expenditures, which rose by 24% year-on-year to RMB 540 million in 1H25 [3][14]. - The company is also testing new skincare product lines and plans to introduce high-priced skincare products targeting mature skin [4][15]. - The expansion strategy includes entering high-end markets in Asia-Pacific, the Middle East, and Europe, with plans to open a flagship store in Hong Kong and expand to Singapore and Japan [7][17]. Market Position - The company’s market capitalization is approximately HK$25.45 billion (US$3.26 billion), with a trading volume averaging US$37.53 million over the past three months [2][8]. - Mao Geping's stock has shown a relative underperformance compared to the MSCI China index, with a 12-month relative decline of 28.3% [2].

Summary of the Conference Call Records Company Overview - The company discussed is 毛戈平, a high-end beauty brand in China, known for its strong IP and Eastern aesthetic philosophy, which has established a significant position in consumers' minds [1][2]. Key Points and Arguments Market Positioning and Strategy - 毛戈平 has a differentiated product positioning and pricing strategy that allows it to occupy a place in the high-end market while attracting consumers from downgraded international brands, thus expanding its market coverage [1][2]. - The company started with offline counters and currently operates over 400 counters, enhancing user experience through a membership service system that increases customer loyalty [1][2]. Business Growth through Product Line Extension - The company is gradually expanding into skincare and fragrance categories, which supports its business growth and enhances annual sales per counter [1][3]. - The core product remains in the color cosmetics category, but the multi-category strategy is expected to improve customer loyalty and increase average transaction value [3][4]. Future Growth Potential - 毛戈平's future growth is considered highly certain, with plans for steady expansion, benefiting from the resurgence of national aesthetics and increased national confidence, leading to a growing market share in high-end cosmetics [5]. - The company plans to add over 20 counters in the first half of 2025, contributing to a projected annual growth rate of about 10% from new counter openings [5][6]. Revenue Growth Sources - The brand's growth is primarily driven by an increase in the number of counters, higher unit prices, and same-store sales growth, with expectations for double-digit growth in same-store sales [6][7]. - The company has successfully launched new products, such as lip and color products, and has maintained an advantage in the base makeup sector [7][8]. Product Development and Performance - In the skincare segment, 毛戈平 has introduced high-performing products like caviar masks and black creams, which accounted for over half of the skincare sales in the first half of the year [7][8]. - The company launched a new fragrance in May, achieving over 10 million yuan in sales within two months, aligning with its brand characteristics [8]. International Expansion Plans - 毛戈平 aims to become a truly international luxury beauty group, with plans to enter the Hong Kong Sephora system and open physical stores in Hong Kong [9][10]. - The company expects to maintain over 20% growth in offline sales and over 30% growth in online sales, leveraging its high conversion rates and customer repurchase rates [10]. Expected Compound Growth Rate - The company anticipates a compound annual growth rate of approximately 30% over the next few years, supported by its steady expansion strategy, new product launches, and enhanced channel development [11].