MAO GEPING (1318.HK) MAO GEPING’s brand power had been strengthened in high-end beauty industry, and it entered the perfume market for the first time May 6, 2025 6

PSR Recommendation: ACCUMULATE Status: Initiation
Target Price: HKD127.03

Overview
MAO GEPING (1318.HK) is mainly engaged in the research and development, production,
sales and makeup skills training of the two major brands of color cosmetics and skin care
products, MGPIN and Favorite lifetime. Relying on the founder, makeup artist Mr. Mao
Geping’s profound understanding of makeup aesthetics, unique understanding of the facial
contours and skin characteristics of oriental women and his own influence, the company has
gradually established brand advantages in the field of cosmetics and makeup skills training.
With the increasing variety of products and stable revenue growth of both online and offline
channels, the company has become a leading domestic brand in the high-end beauty
products market.
Company performance review
In 2024, the company’s revenue was 3.89 billion yuan (RMB, the same below) with a yearon-year increase of 34.6%; net profit was 881 million yuan with a year-on-year increase of
32.8%; earnings per share was 2.18 yuan with a year-on-year decrease of 34.1%; total assets
were 4.47 billion yuan with a year-on-year increase of 113.6%.
Both online and offline sales achieved stable growth, and offline counters continued to
expand
In 2024, the company’s online revenue was 1.78 billion yuan with a year-on-year increase of
51.2%, accounting for 47.8%, mainly because the company strengthened its sales and
marketing promotions on e-commerce platforms; offline revenue was 1.95 billion yuan with
a year-on-year increase of 21.6%, accounting for 52.2%, mainly because the company
increased its sales and marketing efforts, resulting in an increase in the average sales of each
counter by 2024. The company’s online channels cover e-commerce platforms such as Tmall,
Rednote, Douyin, JD.com and Taobao. The company will continue to expand its online
influence by strengthening promotions and cooperating with KOLs. The total number of
online registered members was 10 million, and the repurchase rate was 27.5%. The
company continued to develop offline high-end department store channels and had newly
entered high-end department stores such as Wuhan SKP, Chengdu SKP, and Hangzhou
Tower. As of the end of 2024, the company’s brand counters were located in more than 120
cities across the country, including 378 self-operated counters and 31 distributor counters.
The counters were equipped with more than 2,800 professional beauty consultants,
providing users with great beauty experience. The total number of offline registered
members was 15 million, and the repurchase rate was 34.9%.
Color cosmetics and skin care business continued to grow rapidly, and the makeup skills
training business exceeded the pre-epidemic level
In 2024, the company’s makeup sales revenue was 2.30 billion yuan with a year-on-year
increase of 42%, accounting for 59.3%; skin care revenue was 1.43 billion yuan with a yearon-year increase of 23.2%, accounting for 36.8%; makeup art training and related sales
revenue was 152 million yuan with a year-on-year increase of 45.8%, accounting for 3.9%,
exceeding the pre-epidemic level, mainly due to the increase in the number of participants
enrolled in makeup art training courses.

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About the author

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Margaret Li
Analyst
Research

本科主修市場行銷和英語,並於香港浸會大學獲得經濟學碩士學位。現為輝立証券持牌分析師,主要負責能源和公用事業等板塊的研究。曾在大型銀行、券商和資產管理公司工作,對於期貨和大宗商品衍生品領域擁有銷售、研究分析和市場推廣等工作經驗。 Margaret, a holder of a Bachelor`s degree in Marketing and English and a Master`s degree in Applied Economics from Hong Kong Baptist University, is currently employed as a licensed analyst at Phillip Securities. She specializes in conducting research focusing on the energy and utilities sectors. Prior to her current position, Margaret gained valuable work experience in a large bank, securities firm, and asset management companies. Her expertise lies in sales, research analysis, and marketing within the fields of futures and commodities derivatives.

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