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Investing.com - JPMorgan has initiated coverage on Mao Geping Cosmetics Co (HK:1318) with an Overweight rating and a price target of HK$128.00.
The investment bank views Mao Geping as a rare domestic beauty brand benefiting from experience-led consumption in China, citing its 25-year history and differentiated consumer experience through one-on-one personalized makeup and skincare services.
JPMorgan believes the company has significant opportunity to grow and double its market share in the prestige cosmetics market from its current 2% position.
The bank projects Mao Geping will achieve revenue and earnings compound annual growth rates of 31% over 2025-2027, outpacing peers’ growth rates of 19%/16% based on Bloomberg consensus.
The DCF-based December 2026 price target of HK$128 implies a 31x price-to-earnings ratio for 2027 estimates, which JPMorgan considers justified by the company’s growth visibility and brand potential, with near-term catalysts including upcoming Double 11 events.
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