Pop Mart 9992

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This Chinese Company Turned Collectible Dolls Into a $1.8B Empire

Chinese toy company Pop Mart’s stock exploded over 1,200% in the past year thanks to its success it built off blind box collectibles like Labubu.

These hard-to-get toys drive the majority of Pop Mart’s revenue as unboxings have flooded social media and have fans flocking overseas to buy exclusive products.

But how is the retailer making itself more than just a trend?

Source: The Wall Street Journal

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<Research>JPM: POP MART Has 5 Catalysts; Recent Weak Stock Price Presents Bottom-fish Opportunity

Despite the Chinese state-run media People's Daily publishing a commentary calling for stricter regulation of blind boxes, POP MART (09992.HK)'s main target audience is aged 18-45, differing from the blind cards aimed at primary and secondary school students, JPMorgan's research report indicated.

It is expected that retailers will more strictly enforce age control requirements, but this is unlikely to affect POP MART's sales.

The rating for POP MART was Overweight. POP MART’s stock price has slid by 14% over the past five trading days (vs a 3% subtraction in the HIS in the same period), and the recent weak stock price presents a bottom-fish opportunity.

Related News: JPM Elevates POP MART (09992.HK) TP to $330, Reaffirms Sector Top Pick, Places on Positive Catalyst Watch

The broker recently included POP MART in its Positive Catalyst Watch for reasons including:

(1) a potential positive profit alert in mid-July (JPMorgan forecast a profit of RMB3.5 billion for 1H25, topping the full year of 2024);

(2) the upcoming release of the “Labubu & Friends” animation (copyright registered in June, possibly coinciding with new product launches);

(3) the launch of Labubu x Uniqlo T-shirts in August;

(4) the opening of two new “POPOP” jewelry stores selling more Labubu products, along with other IP products such as SkullPanda, Molly, and Dimoo;

(5) the potential launch of interactive/AI toys (the company has not disclosed this; recently, major online markets have seen counterfeit “Lafufu” products that talk/ sing/ walk/ dance).

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN