Everbright Securities: Maintaining Mao Geping's (01318) “Buy” Rating and Reach Strategic Cooperation with Levy Kaiteng to Further Go Global

The Zhitong Finance App learned that Everbright Securities released a research report saying that to maintain Mao Geping (01318)'s “buy” rating, Mao Geping reached a strategic cooperation with global consumer goods investment giant Luwei Kaiteng. The latter will help it expand high-end overseas channels and jointly establish a beauty industry investment fund. This cooperation will help Mao Geping accelerate the globalization process. The company's online sales performance in 2025 was impressive. Multi-platform sales increased significantly year-on-year. We are optimistic about the continued consolidation and strengthening of the company's high-end beauty positioning, and the collaborative growth of online and offline channels.

The main views of Everbright Securities are as follows:

Mao Geping and Luwei Kaiteng reached a strategic cooperation framework agreement

On January 7, Mao Geping signed a strategic cooperation framework agreement with LCatterton (LCatterton), the world's largest consumer goods investment company. The two sides reached strategic cooperation intentions in terms of global market expansion, acquisition and strategic investment, further optimization of capital structure, and talent introduction and governance.

According to the framework agreement, Luwei Kaiteng will use its global investment layout and strategic partner network to assist and empower the company's brands to expand overseas high-end retail channels; in addition, the two sides plan to jointly establish an equity investment fund focusing on the global high-end beauty sector to inject new impetus into the company's long-term development; at the same time, the two sides will also cooperate in further optimization of the capital structure, talent introduction and governance.

Luwei Kaiteng has invested heavily in the global consumer goods sector, empowering the company to move towards globalization

Mao Geping and Luwei Kaiteng complement each other's strengths and move further towards globalization. Lowell Kaiteng is an American consumer investment institution. It manages approximately US$39 billion in equity capital through the three major diversified product platforms of private equity, credit and real estate. It has rich investment and empowering experience in building global beauty and personal care brands. Its portfolio covers various segments such as skincare, makeup, and fragrance.

Luwei Kaiteng has invested in more than 300 world-renowned consumer brands around the world, including Nordic bath and body skin care brand STENDERS, Italian makeup brand KIKO, etc., and the scale of a single investment can cover 5 million to 5 billion US dollars. It has more than 200 investment and operation experts in 18 offices around the world, and continues to create differentiated value for the investment portfolio. Additionally, it has invested in Mao Geping's supply chain partner Yingteli, and has continued to cooperate with Mao Geping since 2015.

The company continues to strengthen its high-end beauty positioning, and sales performance has been outstanding since this year

According to Magic Mirror statistics, from January to November 2025, the total sales volume of the Mao Geping brand Aotian/Douyin/JD platforms increased 32% year over year, and the three platforms increased 8%/50%/70% year over year respectively. The Douyin and JD channels performed well. The company's cosmetics category has established a foundation, and the skincare category continues to gain strength. In December 2025, it launched a new snow gel skincare series.

Risk Alerts

Terminal retail continues to weaken, and customer flow falls short of expectations; risk of makeup artists being deeply tied to individual brands; intensifying industry competition; risk of slowing e-commerce channel growth, leading to increased cost rigidity or marginal weakening of investment effects; risk of fluctuations in IPO stock prices.