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<Research> JPMorgan Considers MAOGEPING (01318.HK) as Top Pick in China Beauty Sector, Maintains 'Overweight' Rating
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JPMorgan reported that MAOGEPING (01318.HK) delivered strong results last year, with sales and profits increasing by 30% and 37% year-on-year, respectively, surpassing the company's guidance. The management remains confident about 2026, targeting a 30% growth in both sales and profits, and plans to open 20 to 30 new stores with a same-store sales growth target of 12%. The firm noted that MAOGEPING's gross margin is as high as 84%, with limited impact on profits from rising raw material prices. There is significant potential for membership growth, with offline members reaching 6.4 million (target customer base of 40 million) and online members reaching 15.6 million (target customer base of 300 to 400 million). The company remains flexible regarding acquisition opportunities to build a multi-brand portfolio. JPMorgan also believes that the company's growth visibility this year is solid, with a strong performance in the first quarter, mainly benefiting from its optimal positioning in experiential consumption trends, a clear roadmap for store network expansion, and enhanced brand awareness. JPMorgan largely maintains its profit forecasts for MAOGEPING for 2026 and 2027, with a target price of HKD130, corresponding to a forecast P/E ratio of 31x for 2027, and maintains an 'Overweight' rating, considering it the top pick in the China beauty sector. (hc/j) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
URL: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. |
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