Core Viewpoint - Mao Geping is expected to report strong financial performance for the first half of 2025, with revenue projected between 2.57 billion and 2.60 billion RMB, representing a year-on-year growth of 30.4% to 31.9%, and net profit estimated between 665 million and 675 million RMB, reflecting a growth of 35.0% to 37.0% [1] Group 1: Financial Performance - The company anticipates impressive mid-year results, with both revenue and profit growth exceeding 30% and 35% respectively, driven by effective brand premiumization and a commitment to consumer value [1] - During the 618 shopping festival, Mao Geping's brand ranking improved significantly, reaching 2nd place in Douyin's cosmetics category and 3rd in Tmall's cosmetics and perfume category, highlighting its competitive edge in a challenging consumer environment [1] Group 2: Product Development and Market Position - The launch of the "Wen Dao Dong Fang" perfume series is aimed at creating a new growth point, with the Chinese perfume market projected to reach 14.8 billion RMB in 2024 [2] - The new perfume series differentiates itself from foreign brands by focusing on emotional expression and is priced strategically in the 500-800 RMB range, avoiding competition with high-priced international brands while distinguishing itself from lower-priced domestic products [2] - Mao Geping is recognized as a rare high-end domestic beauty brand with pricing power in the Oriental aesthetic market, supported by a strong founder's IP and a professional high-end product matrix [2] Group 3: Investment Outlook - The company has successfully carved out a niche in the high-end segment of the domestic beauty market, establishing a professional brand image that offers better value compared to European and American brands [3] - Revenue forecasts for 2025-2027 are set at 5.05 billion, 6.50 billion, and 8.26 billion RMB respectively, with net profits projected at 1.19 billion, 1.51 billion, and 1.92 billion RMB, indicating a compound annual growth rate of 29.6% for net profit from 2024 to 2027 [3] - Mao Geping is positioned as a leading example of domestic high-end beauty brands, with strong growth potential in product categories and channel expansion [3]

Investment Rating - The investment rating for the company is "Buy" [1][7] Core Views - The company is expected to achieve a revenue of RMB 25.7 billion to RMB 26.0 billion in the first half of 2025, representing a year-on-year growth of 30.4% to 31.9%. The net profit is projected to be between RMB 6.65 billion and RMB 6.75 billion, indicating a year-on-year increase of 35.0% to 37.0% [2] - The company's strong performance is driven by its high-end brand strategy, which has led to increased consumer recognition and value creation through high-quality products and services [3] - The launch of the "Wen Dao Dong Fang" perfume series is expected to create new growth points, targeting the light luxury market with a price range of RMB 500 to 800, differentiating itself from both international brands and lower-priced domestic products [4][5] - The company is positioned as a rare high-end domestic beauty brand with strong pricing power, supported by a robust brand moat and ongoing expansion into high-end retail channels [5][6] Financial Summary - The company forecasts revenues of RMB 50.54 billion, RMB 65.03 billion, and RMB 82.58 billion for 2025, 2026, and 2027 respectively, with net profits of RMB 11.85 billion, RMB 15.06 billion, and RMB 19.18 billion for the same years [6][9] - The compound annual growth rate (CAGR) for net profit from 2024 to 2027 is projected at 29.6%, with earnings per share expected to be RMB 2.42, RMB 3.07, and RMB 3.91 for 2025, 2026, and 2027 respectively [6][9] - The company maintains a gross margin of approximately 84% across the forecast period, indicating strong profitability [9][11]