Global China Summit 2026 Takeaways: On-Track - Chicmax Multi-Brand Momentum
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Following the 2026 Global China Summit, J.P. Morgan reiterated an Overweight rating on Chicmax (2145.HK) with a target price of HKD 99. The firm highlights that the company's core brand, KANS, continues its recovery trajectory while emerging brands demonstrate strong momentum. Management maintained the 2026 financial guidance, which projects sales growth exceeding 15% and a net profit margin between 12% and 13%.
Operationally, KANS self-streaming sales returned to positive growth in March, and key opinion leader (KOL) livestreaming resumed in mid-May. The company targets KOL channels to contribute roughly 10% of total gross merchandise volume (GMV) in the second half of the year. Furthermore, emerging brands are executing well: Newpage achieved sales growth exceeding 50% from January to April, while Armiyo successfully doubled its sales volume over the same period.
J.P. Morgan views Chicmax as a prime beneficiary of the rapidly expanding Chinese cosmetics market and the broader consumer shift toward domestic brands. The company's competitive edge is anchored in its diversified multi-brand portfolio, robust research and development capabilities, and comprehensive omnichannel distribution strategy. The target price of HKD 99 is derived from a discounted cash flow model, implying a multiple of 24 times the forecasted 2027 price-to-earnings ratio. Downside risks include regulatory shifts and inflation, while successful brand incubation remains a key catalyst.