Eternal Beauty Holdings Limited (6883) has received a new Buy rating, initiated by CMB International Securities analyst, Miao Zhang.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Miao Zhang has given his Buy rating due to a combination of factors that highlight Eternal Beauty Holdings Limited’s strategic positioning and growth potential in the luxury fragrance market. As a pioneer in introducing international premium perfumes to China, the company has established itself as a key player in the rapidly expanding perfume industry, which is projected to grow at a compound annual growth rate of 9-14% over the next few years. This growth is driven by increasing consumer interest and spending on perfumes, particularly in lower-tier cities and among male consumers, as well as the rising penetration of online perfume sales.
Miao Zhang also emphasizes Eternal Beauty’s robust multi-brand operation, which enhances its bargaining power both downstream and upstream. With a diverse portfolio of over 70 international brands and extensive market-entry expertise, the company effectively manages brand onboarding and regulatory processes. Additionally, concerns about brand licensing withdrawal and competition from domestic brands are considered to be overstated. Eternal Beauty’s long-term contracts with key brands and the distinct market positioning of international premium perfumes mitigate these risks. Consequently, the company’s strategic advantages and market opportunities underpin the Buy rating, with a target price reflecting a favorable valuation compared to its peers.
Zhang covers the Real Estate sector, focusing on stocks such as China Resources Mixc Lifestyle Services Ltd., Greentown Service Group Co. Ltd., and Binjiang Service Group Co. Ltd.. According to TipRanks, Zhang has an average return of 24.3% and a 73.08% success rate on recommended stocks.