UBS lowers MAO GEPING's target price to 87.5 yuan, maintains "Neutral" rating

UBS published a research report stating that MAO GEPING (01318.HK) has solid brand assets and a rich product portfolio, which can support growth in 2026. The bank maintains a positive outlook on its 2026 earnings prospects but lowered the target price from HKD 100.6 to HKD 87.5, maintaining a "Neutral" rating.

The report pointed out that MAO GEPING's sales and adjusted net profit are expected to grow by 30% and 31% year-on-year in 2025, respectively. Regarding its globalization development path, management emphasized its plan to establish the company's first overseas makeup artist training school in Hong Kong and set up an overseas headquarters by July 2026, aiming to gradually penetrate the European and other international markets. In terms of multi-brand strategy, management adheres to a prudent expansion strategy, striving to build a complementary brand matrix through potential overseas acquisitions or internal brand incubation