China Securities Co.,Ltd. released a research report, stating that it has initiated coverage on Maogeping (01318) with a "Buy" rating, believing that the company is a local cosmetics group that combines the triple scarcity of the color cosmetics track, high-end positioning, and strong offline layout. Its profitability is industry-leading, with revenue projections for Maogeping from 2024 to 2026 expected to be 4.11 billion, 5.581 billion, and 7.374 billion yuan respectively, with year-on-year growth of 42.41%, 35.8%, and 32.13%. Earnings forecasts are 0.887 billion, 1.181 billion, and 1.543 billion yuan, with year-on-year growth of 33.98%, 33.21%, and 30.61% respectively.

China Securities Co.,Ltd. believes that Maogeping's offline membership ecosystem is well-established and that its capabilities for creating quality online content are outstanding. The high-end positioning creates dual tracks for color cosmetics and skincare, providing ample room for product category extension. In the first half of this year, the color cosmetics business has achieved revenue of 1.09 billion yuan and is expected to exceed 2 billion yuan for the whole year; while the skincare business reached 0.81 billion yuan in the first half and is expected to achieve 1.5 billion yuan for the whole year. Last year, Maogeping's color cosmetics GMV was 2.059 billion yuan, and the expected GMV for China's top high-end color cosmetics is about 2.5 times that of Maogeping, still leaving room for incremental growth. The anticipated GMV for Maogeping skincare is 1.5 billion yuan, which is still in the early rapid growth phase for maintenance products and far from reaching a ceiling; as the company's scale expands, the extension of skincare categories will be imperative.