JP Morgan raised MAO GEPING's target price to 130 yuan, expecting sales and profits to increase by about 30% this year

JP Morgan released a report expecting MAO GEPING (01318.HK) to achieve sales and profit growth of 29% and 30% respectively in 2026, while the compound annual growth rates for sales and profit from 2021 to 2024 are projected to be 35% and 39%, significantly higher than the industry averages of 19% and 11%, and far exceeding the retail industry's growth rate of 3%.

The bank believes that MAO GEPING has robust growth visibility for 2026 due to its optimal positioning in the experiential consumption trend, clear expansion plans for its store network, continuously increasing brand awareness, product lines meticulously designed for Chinese facial features and aesthetics, category expansion, and a consistently differentiated retail experience. The recent strategic partnership with L Catterton also presents opportunities for its overseas expansion and potential acquisitions.

The bank pointed out that the management's earlier announced share reduction plan should help alleviate investor concerns regarding the expiration of the lock-up period in December 2025; it has slightly adjusted the company's profit forecasts for 2025 to 2027 by 0% to 2%, raised the target price from 128 yuan to 130 yuan, assigned a "buy" rating, and listed MAO GEPING as a preferred stock in the Chinese beauty sector