Core Viewpoint - The company maintains its profit forecast for 2025-2026, with the current stock price corresponding to a P/E ratio of 41x for 2025 and 31x for 2026, indicating a target price of HKD 127, which represents a 22.5% upside potential [1] Product Development - The skincare product matrix continues to expand, with positive market feedback for new perfume products. The company is building its brand identity around Eastern aesthetics, facilitating successful category extensions [2] - Skincare: The product matrix is enriched with serums and creams, with the launch of the black gold water in 1H25 and the new spark root series in September, targeting anti-aging solutions for Eastern skin types [2] - Makeup: The color product line is being enhanced, with the launch of the starry sky eyeshadow in 1H25 and earth-tone eyeshadows in Q3 [2] - Perfume: 13 new products were launched in May, with continued high demand in July and August, indicating strong market reception [2] Channel Expansion - Offline: The company has successfully entered high-end retail locations, with plans for further expansion in 2H25, including a new counter in Hangzhou and ongoing planning for Shenzhen and other locations. Same-store sales growth of approximately 18% in 1H25 outperformed the offline market average [3] - Online: The company has maintained a balanced structure in self-broadcasting and influencer marketing, achieving a 47% year-on-year increase in GMV on Tmall and Douyin from July to August, indicating successful outreach to younger demographics [3] International Expansion - The company has entered the Hong Kong market with a presence in Sephora and plans to open its first counter in Harbour City, Hong Kong, in October. There are expectations to expand into Southeast Asia, Japan, and Europe starting in 2026, highlighting the company's growth potential as a rare high-end domestic beauty brand [4]

Core Viewpoint - The report from CICC maintains the profit forecast for Maogeping (01318) for 2025-2026, with the current stock price corresponding to a P/E of 41/31x for those years, and a target price of HKD 127, indicating a potential upside of 22.5% [1] Group 1: Product Development - The skincare product matrix continues to expand, with positive market feedback on new perfume products [2] - In skincare, the company is launching a series of products targeting anti-aging issues, including the "Fire Source" series and the black gold series [2] - In color cosmetics, new products such as the "Starry Sky" eyeshadow and earth-tone eyeshadows have been introduced [2] - The perfume segment saw the launch of 13 new products in May, which remain in high demand [2] Group 2: Channel Expansion - The company is strengthening its brand presence by entering high-end retail locations, with significant same-store growth outperforming the market [3] - Offline, the company has opened new counters in prestigious locations, with a same-store growth of approximately 18% in the first half of 2025 [3] - Online, the company has successfully engaged younger demographics, with a combined GMV growth of 47% on Tmall and Douyin from July to August [3] Group 3: International Expansion - The company is expanding its brand internationally, having entered Sephora in Hong Kong and planning to open its first counter in Harbour City, Hong Kong in October [4] - The company aims to expand into Southeast Asia, Japan, and Europe starting in 2026, indicating strong growth potential as a rare high-end domestic beauty brand [4]