Caixin Media December 4th News (Editor Hu Jiarong) After Mao Geping launched its IPO on the 2nd of this month, the market's subscription for the stock remained hot. According to Futu data, the subscription amounts from Hong Kong brokerages including Futu Securities, CMBI Securities, Guotai Junan Securities, and Tiger Brokers were 48.674 billion Hong Kong dollars, 8 billion Hong Kong dollars, 2 billion Hong Kong dollars, and 1.553 billion Hong Kong dollars respectively.

As of the time of publication, Mao Geping's subscription amount is 63.168 billion Hong Kong dollars.

Note: Mao Geping's new stock subscription situation

Mao Geping's company is currently ranked fourth in new stock subscriptions this year. Meanwhile, the subscription amounts for CR Beverage, Carrot, and Jinko Solar were 99.229 billion Hong Kong dollars, 79.891 billion Hong Kong dollars, and 63.896 billion Hong Kong dollars respectively.

Note: Companies with the top six new stock subscription amounts this year

Why is Mao Geping's new stock subscription so popular?

According to public information, Mao Geping is a leading domestic high-end cosmetics enterprise. Based on the 2023 retail sales, Mao Geping is the seventh largest high-end cosmetics group in China, with a market share of 1.8%. If successful in listing, the company would become the first Chinese cosmetics stock on the Hong Kong stock market.

According to the prospectus, from 2021 to June 30, 2024, Maogeping's revenue was 1.577 billion yuan, 1.829 billion yuan, 2.886 billion yuan, and 1.972 billion yuan respectively; net income was 0.331 billion yuan, 0.352 billion yuan, 0.664 billion yuan, and 0.493 billion yuan.

Currently, under Maogeping's umbrella, there are two major cosmetic brands, namely "MAOGEPING" and As Loved Forever. The "MAOGEPING" brand, named after the company's founder, is the core brand of the company, positioned as a high-end brand. It mainly operates through middle to high-end department store counters and e-commerce sales, targeting urban women as a domestic high-end cosmetic brand; The As Loved Forever brand is mainly distributed through a wholesale model, targeting female consumers in second and third-tier cities, aiming to expand the company's product coverage group and sales areas.

From the revenue structure perspective, the company's revenue highly depends on the main brand "MAOGEPING". According to the prospectus, in the first half of 2024, "MAOGEPING" brand's revenue reached 1.887 billion yuan, accounting for as high as 95.69%, with a year-on-year growth rate of 40.1%. The As Loved Forever brand's revenue in the first half of 2024 was 13.32 million yuan, accounting for only 0.7%, with a growth rate of 2.1%.

In addition, recent reports have pointed out that several well-known companies including s.f. holding have successively listed, along with the active performance of Chinese concept stocks in the U.S. stock market, all of which indicate a gradual warming up of the Hong Kong IPO market and the international capital markets.