Summary of the Conference Call for Mao Geping Company Company Overview - Mao Geping Company reported a total revenue of 3.885 billion yuan in 2024, representing a year-on-year growth of 35% [3] - The adjusted profit was 920 million yuan, with a growth rate of 40%, while the net profit reached 880 million yuan, growing by 34% [3] - The company's main business is focused on color cosmetics, with color cosmetics revenue at 2.3 billion yuan (59% of total revenue) and skincare revenue at 1.43 billion yuan (37% of total revenue), showing a decline of 3.4 percentage points year-on-year in skincare revenue [2][3] Key Points and Arguments - **Sales Channels**: The sales distribution is relatively balanced between online and offline, with online sales accounting for 46% and offline for 53% [2][3] - **Growth Rates**: Offline sales grew by 22%, while online sales surged by 51% [4] - **Skincare Product Performance**: The growth rate for skincare products weakened in the second half of 2024, with only a few percentage points increase, attributed to adjustments in product strategy and operational rhythm [5] - **Future Outlook for Skincare**: The company remains optimistic about the future of skincare, planning to increase promotional efforts on platforms like Douyin in 2025, aiming for skincare's share to rise above 40% [6] - **New Product Launches**: In May 2025, the company launched a new perfume, which performed in line with or slightly above expectations, with some popular SKUs experiencing stockouts [7] Market Sentiment and Future Projections - **Market Focus**: Current market attention is on the proportion of skincare products and their future growth certainty, as well as the company's operational rhythm [5] - **Investment Outlook**: Guohai Securities maintains a positive outlook on the Mao Geping brand, predicting a growth rate of around 30% over the next three years and close to 20% over five years, indicating a relatively high degree of certainty [8] - **Stock Unlocking Events**: The company has stock unlock events scheduled for June and December 2025, which may create opportunities for exits or new entries in the market [4][8] Additional Important Insights - **Product Strategy Adjustments**: The company acknowledges that the previous lower proportion of skincare products was related to product strategy and marketing rhythm, which is expected to improve with increased marketing efforts [6] - **Sales Performance of Key Products**: Key products like sunscreen and caviar essence series have shown strong performance offline, although their online exposure has been limited [5]