Core Insights - The company reported a revenue of RMB 2.588 billion for the first half of 2025, representing a year-on-year increase of 31.3% [1] - Net profit reached RMB 670 million, up 36.1% year-on-year, with adjusted net profit at RMB 672 million, reflecting a 32.0% increase [1] - Gross margin stood at 84.2%, down 0.7 percentage points year-on-year, while net margin improved to 25.9%, up 0.9 percentage points, primarily due to a decrease in sales expense ratio [1] Product Category Performance - **Makeup**: Revenue for the first half of 2025 was RMB 1.42 billion, a 31.1% increase year-on-year, with volume and price changes of +37% and -4% respectively. Key products like luxury caviar cushion and soft-focus powder both exceeded RMB 200 million in GMV [1] - **Skincare**: Revenue reached RMB 1.09 billion, up 33.4% year-on-year, with volume and price changes of +32% and +1% respectively. Star products like caviar masks and black cream achieved GMV of over RMB 600 million and RMB 200 million respectively, with the caviar mask growing over 33% [1] - **Fragrance**: The fragrance category generated RMB 11 million in its first year, with a gross margin of 77.6%, continuing the brand's high-end oriental aesthetic recognition [2] - **Training Business**: Revenue was RMB 67 million, down 5.9% year-on-year, due to controlled enrollment to enhance service quality and student satisfaction [2] Channel Performance - **Online Sales**: Revenue from online channels was RMB 1.3 billion, a 39.0% increase year-on-year, surpassing offline channels. The repurchase rate reached 24.1%, up 2.6 percentage points [2] - **Offline Sales**: Revenue from offline channels was RMB 1.22 billion, up 26.6% year-on-year, with same-store sales growth of 18%. The company had a total of 437 counters by the end of the first half of 2025, netting an increase of 27 self-operated and 1 distributor counter [2] Expense Management - The sales expense ratio improved to 45.2%, down 2.3 percentage points year-on-year, with marketing and promotional expenses growing by 23.9%, slower than revenue growth, indicating efficient operational capabilities [3] Profit Forecast - The company expects net profits for 2025, 2026, and 2027 to be RMB 1.22 billion, RMB 1.54 billion, and RMB 1.90 billion respectively, with year-on-year growth rates of 38.7%, 26.1%, and 23.4% [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [4]. Core Insights - The company reported a revenue of RMB 2.588 billion for the first half of 2025, representing a year-on-year increase of 31.3%, and a net profit of RMB 670 million, up 36.1% year-on-year [1]. - The gross margin stood at 84.2%, slightly down by 0.7 percentage points year-on-year, while the net profit margin improved by 0.9 percentage points to 25.9%, primarily due to a reduction in sales expense ratio [1]. - The company is experiencing strong growth across its core product categories, with makeup and skincare showing particularly robust performance [2][7]. Revenue Breakdown by Product Category - **Makeup**: Revenue reached RMB 1.42 billion in H1 2025, a 31.1% increase year-on-year, with significant contributions from flagship products [2]. - **Skincare**: Revenue was RMB 1.09 billion, up 33.4% year-on-year, with strong sales from key products [2]. - **Fragrance**: The fragrance category generated RMB 0.11 billion in its first year, with a gross margin of 77.6% [2]. - **Training Business**: Revenue declined to RMB 67 million, down 5.9% year-on-year, due to a strategic decision to limit enrollment for quality improvement [3]. Revenue Breakdown by Channel - **Online Sales**: Revenue from online channels was RMB 1.3 billion, a 39% increase year-on-year, surpassing offline sales for the first time [6]. - **Offline Sales**: Offline revenue reached RMB 1.22 billion, up 26.6% year-on-year, with a notable increase in same-store sales [6]. Financial Projections - The company expects net profits of RMB 1.22 billion, RMB 1.54 billion, and RMB 1.90 billion for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 38.7%, 26.1%, and 23.4% [7][8]. - Revenue projections for 2025, 2026, and 2027 are RMB 5.153 billion, RMB 6.485 billion, and RMB 7.826 billion, reflecting growth rates of 32.65%, 25.85%, and 20.66% [8].

Core Insights - 毛戈平 is expanding its presence in high-end shopping malls, positioning itself alongside international luxury brands [1][2] - The brand has maintained a balanced sales structure between online and offline channels, with a focus on mid-to-high-end pricing [1][6] - 毛戈平's skincare segment is emerging as a significant growth driver, contributing 30-40% of total revenue, while color cosmetics still dominate sales [6][9] Expansion Strategy - 毛戈平 plans to open permanent stores in high-end locations like Beijing SKP and has already tested temporary stores in various cities [1][2] - The brand is upgrading existing retail spaces, such as expanding its counter in 武林银泰 from a few square meters to 40 square meters [1] - 毛戈平 currently operates 378 self-operated counters and 31 distributor counters across 120 cities in China [1] Market Positioning - 毛戈平 is recognized as one of the few Chinese brands entering the high-end beauty market traditionally dominated by international players [1][4] - The brand's self-operated stores enhance profit margins and allow for better market feedback and customer data collection [5] - 毛戈平's sales staff have a starting salary of 3,000 yuan, with a performance-based incentive structure that differs from many international brands [5] Product Development - The brand has launched over 100 new products in 2024 and plans to enter the high-end perfume market with the "闻道东方" series in April 2025 [8][9] - 毛戈平's skincare products have a gross margin of 87.2%, which is higher than that of its color cosmetics [6] - The brand aims to build its own production base, with a factory in Hangzhou expected to be operational by mid-2026 [11] Financial Performance - 毛戈平's stock price has shown significant growth since its IPO, reaching a peak of 130.6 HKD per share in June 2025, although it has recently adjusted to 98.3 HKD [11]