HK Stock Market Move | MAO GEPING (01318) rose by more than 3% again. Skincare and cosmetics categories are steadily growing, with institutions optimistic about the company's future growth prospects.

MAO GEPING (01318) rose by over 3%, reaching 63.7 Hong Kong dollars with a 3.23% increase as of the time of reporting, with a trading volume of 18.6451 million Hong Kong dollars. Huayuan Securities released a research report stating that it is expected that MAO GEPING will achieve operating income of 40.5/53.1/67.0 billion yuan from 2024 to 2026, with year-on-year growth rates of 40.4%/31.0%/26.2%, and achieve net profit attributable to the parent company of 9.4/12.8/16.0 billion yuan, with year-on-year growth rates of 42.2%/35.6%/25.1%. The bank believes that as a domestic high-end cosmetic brand, the company's founder's IP will empower the brand deeply, with stable channel expansion, and steady growth in skin care and cosmetics categories, and it is optimistic about the company's future growth space. The bank stated that MAO GEPING's brands include MAOGEPING and Zhi Ai Zhongsheng. The flagship brand MAOGEPING is the only Chinese brand among the top fifteen high-end beauty brands in the Chinese market, ranking twelfth in retail sales in 2023 with a market share of 1.8%. In terms of market size, the compound growth rate of the cosmetics industry in China is expected to reach 8.6% from 2023 to 2028, with better growth prospects in the high-end skin care and cosmetics categories compared to the mass market; in terms of competitive landscape, based on retail sales in 2023, the top five beauty conglomerates jointly hold a market share of 55.4%, all of which are international beauty conglomerates, with MAO GEPING ranking seventh and being the only Chinese domestic beauty company in the top ten, demonstrating its industry-leading position in the high-end beauty sector.