Cathy Chen, an analyst from Goldman Sachs, has initiated a new Hold rating on Mao Geping Cosmetics Co., Ltd. Class H (1318).
Cathy Chen’s rating is based on several factors that influence the current valuation of Mao Geping Cosmetics Co., Ltd. Class H. The company has shown impressive growth in sales and net income, with compound annual growth rates of 35% and 41% respectively from 2021 to 2023. This growth is expected to continue, driven by the company’s strong brand identity, particularly its appeal to middle-aged women in lower-tier cities and its successful offline and online operations.
However, despite these positive aspects, the stock has already seen a significant increase of 142% since its IPO in December 2024, and it is currently trading at a price-to-earnings ratio that is higher than the sector average. Cathy Chen believes that the current market price already reflects the company’s long-term growth potential. Therefore, she suggests a Hold rating, indicating that investors might want to wait for a more attractive entry point, especially as the company works on proving its success in the skincare and online sales segments.
According to TipRanks, Chen is a 3-star analyst with an average return of 36.3% and a 66.67% success rate.