Investment Rating - The report initiates coverage with an OUTPERFORM rating for Mao Geping Cosmetics, with a target price of HK$124.50, indicating a potential upside of 26.4% from the current price of HK$95.70 [2][7]. Core Insights - Mao Geping is positioned as a high-end beauty brand in China, ranking 4th in the color cosmetics market with a market share of 3.7% as of 2024. The brand's primary revenue source is color cosmetics, accounting for approximately 60% of total product revenue [3][20]. - The company has shown strong revenue growth, with a projected revenue of RMB 5.19 billion for 2025, reflecting a year-on-year growth of 34% [7]. - Mao Geping's product sales are primarily driven by offline channels, with online sales growing rapidly, accounting for 48% of total revenue in 2024 [24][34]. Summary by Sections Company Overview - Mao Geping Cosmetics was founded by renowned makeup artist Mao Geping, who has over 30 years of experience in the industry. The brand is known for its high-quality products and strong cultural heritage [9][10]. Financial Performance - The company reported a revenue of RMB 3.885 billion in 2024, with a year-on-year growth of 34.6%. The net profit for the same year was RMB 881 million, also reflecting a growth of 33% [7][20]. - The gross profit margin has remained stable at around 84%, with a slight decrease to 84.4% in 2024 [7][27]. Product and Market Positioning - Mao Geping's product range includes approximately 400 SKUs, with color cosmetics making up about 350 SKUs. The brand faces limited pricing power in the high-end market but has significant room for growth in SKU offerings [4][6]. - The average selling price for color cosmetics is below RMB 180, while skincare products have a higher average price of RMB 312 [20]. Sales Channels - The company primarily utilizes high-end department stores for offline sales, with a focus on providing a premium customer experience through well-trained beauty advisors. As of 2024, Mao Geping has over 409 counters across more than 120 cities in China [3][29]. - Online sales have been increasing rapidly, with a year-on-year growth of 51.2% in 2024, driven by enhanced marketing efforts on e-commerce platforms [24][34]. Customer Engagement - The company has seen a significant increase in membership, with a total of 1.51 million members as of 2024, representing a 46.6% year-on-year growth. The overall repurchase rate improved from 26.8% to 30.9% [39][40].
毛戈平（01318）：首次覆盖：中国高端美妆品牌，从SKU和店效看毛戈平发展空间