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Mao Geping: Strong Growth, High Margins, and 44% Upside Support Buy Rating

Mao Geping: Strong Growth, High Margins, and 44% Upside Support Buy Rating

Analyst Wei Dustin of Morgan Stanley maintained a Buy rating on Mao Geping Cosmetics Co., Ltd. Class H, with a price target of HK$100.00.

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Wei Dustin has given his Buy rating due to a combination of factors, including solid execution and attractive upside to the target price. Mao Geping delivered around 30% revenue growth in 2025, with both color cosmetics and skincare expanding at similar robust rates, while maintaining a very high gross margin and improving operating leverage through lower staff costs.

Wei also notes that management’s guidance for 2026 calls for about 30% top-line growth with even faster net profit expansion, supported by disciplined channel expansion and healthy same-store sales in premium locations. Despite recent volatility and a partial shareholder selldown, management views the current valuation as undemanding, and the analyst sees roughly 44% potential upside from the current share price, justifying a Buy recommendation.

According to TipRanks, Dustin is a 4-star analyst with an average return of 36.8% and a 32.26% success rate.

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