Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][8]. Core Insights - The company is positioned as a high-end beauty brand, leading the trend of Eastern aesthetics. It has a strong personal IP and a well-established product matrix, focusing on both color cosmetics and skincare [2][6][23]. - The Chinese beauty market is experiencing rapid growth, particularly in the high-end segment where domestic brands are gaining traction. The company is expected to benefit from this trend, with significant revenue growth projected for the coming years [8][51][56]. Summary by Sections Company Overview - The company was founded in 2000 by renowned makeup artist Mao Geping and has grown into a leading high-end domestic beauty group. The founders hold a combined 47.9% stake in the company, ensuring stable governance and strategic continuity [6][27]. - The company reported a revenue of 2.89 billion yuan in 2023, with a compound annual growth rate (CAGR) of 35% from 2021 to 2023 [34]. Market Potential - The overall Chinese beauty market is projected to grow significantly, with the market size expected to reach 876.3 billion yuan by 2028, driven by a CAGR of approximately 8.6% [51][54]. - The skincare segment is particularly strong, accounting for nearly 80% of the beauty market, while the color cosmetics market is also expanding rapidly [54][56]. Competitive Advantages - The company's core competitive edge lies in its unique combination of personal IP, product offerings, distribution channels, and marketing strategies that resonate with consumers [7][10]. - The product matrix includes a wide range of color cosmetics and skincare products, with star products like the "Light Sensation No-Trace Powder" and "Luxury Caviar Mask" driving sales [7][100][105]. Financial Projections - Revenue forecasts for 2024-2026 are 40.2 billion yuan, 52.7 billion yuan, and 64.2 billion yuan, respectively, with year-on-year growth rates of 39.36%, 31.08%, and 21.72% [8][145]. - The projected net profit for the same period is 9.3 billion yuan, 12.4 billion yuan, and 15.4 billion yuan, with corresponding growth rates of 40.56%, 33.52%, and 23.80% [8][145]. Sales Channels - The company employs a multi-channel sales strategy, with a strong emphasis on direct sales. As of 2024, offline sales accounted for 46.1% of total revenue, while online sales reached 38.8% [112][116]. - The company has successfully expanded its presence in both offline and online markets, leveraging platforms like Douyin and Tmall to enhance brand visibility and sales [134][138]. Brand Strategy - The company aims to enhance its brand reputation through strategic brand management and product innovation, focusing on high-quality offerings that cater to the needs of Chinese consumers [139][140]. - The brand's marketing strategy includes engaging with consumers through social media and influencer partnerships, which have significantly increased brand awareness and consumer interaction [119][121].
毛戈平：专业稀缺彩妆IP，东方美学引领风尚