Sinolink released a report predicting that the net profit of cosmetic company Mao Geping (01318.HK) will grow by 43%, 34%, and 21% year-on-year this year, next year, and the year after, respectively, based on the company's high-end positioning scarcity, giving a target PE of 24 times and a target price of 67.67 yuan, with an investment rating of 'Buy'.

The report indicates that the Mao Geping brand ranked ninth in the domestic high-end makeup industry last year, being the only domestic brand among the top ten. The company's highly professional and branded teaching videos create business barriers, with fans on Xiaohongshu, Douyin, and Bilibili (09626.HK) reaching 0.825 million, 0.62 million, and 0.91 million respectively, with KOL makeup artists ranking highly as well. The company has significant advantages in base makeup products, with new cushion products featuring caviar and feather driving an increase in market share for foundations. The skincare product line successfully created a star product with caviar masks. Future growth will come from developing product series, using product combinations, and continuously upgrading word-of-mouth products.

The report also indicates that the company's counters offer makeup trial services which create a differentiated advantage, with registered member 'return rates' exceeding 30%. The company focuses on core products, founder IP empowerment, and live streaming, leading to rapid growth in online sales. Statistics show that the gross trade total on Douyin platform in the last year and the first 11 months of this year were 0.69 billion and 1.1 billion yuan respectively.