Investment Rating - The report assigns a "Buy" rating for the company, indicating that the stock is expected to outperform the relevant market index by more than 15% over the next 12 months [21]. Core Insights - The Chinese beauty market is expansive and fragmented, with a market size projected to grow from CNY 402.6 billion in 2018 to CNY 579.8 billion in 2023, reflecting a compound annual growth rate (CAGR) of 7.6%. It is expected to reach CNY 876.3 billion by 2028, with color cosmetics and skincare markets projected to reach CNY 175.2 billion and CNY 701.1 billion, respectively [4]. - The company, Maogeping, is positioned as a high-end domestic beauty brand, leveraging a unique blend of light and shadow aesthetics with Eastern beauty principles. It has established a strong brand image and operates 372 self-operated counters across 120 cities in China, supported by 2,700 beauty consultants [4][5]. - The pricing strategy for Maogeping's products places them in a competitive range, with color cosmetics priced between CNY 150-180 and skincare products between CNY 300-350, strategically positioned above domestic brands but below foreign brands [5]. - The company has shown robust sales growth, with revenue increasing from CNY 1.58 billion in 2021 to CNY 2.89 billion in 2023, representing a CAGR of 35.3%. Net profit also rose significantly, with a CAGR of 41.6% [6][7]. Summary by Sections Market Overview - The Chinese beauty market is projected to grow significantly, with a CAGR of 8.6% expected from 2023 to 2028, driven by increasing consumer demand for high-quality beauty products [4]. Company Positioning - Maogeping has established itself as a leader in the high-end domestic beauty segment, with a unique brand identity and a strong retail presence [4][5]. Product Performance - The company has a diverse product line with 387 SKUs, including 337 color cosmetics and 50 skincare products. The color cosmetics segment saw a sales volume of 9.72 million units in 2023, a 52.37% increase year-on-year [5]. Financial Performance - Revenue growth from CNY 1.58 billion in 2021 to CNY 2.89 billion in 2023, with a net profit increase from CNY 331 million to CNY 663 million during the same period, indicates strong financial health [6][7].
毛戈平：难以复制的高端国货美妆品牌，护肤品开辟第二增长曲线-20250223