Pop Mart 9992

[winston]

vested

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

variant=44050464014534&country=US&currency=USD&utm_medium=product_sync&utm_source=google&utm_content=sag_organic&utm_campaign=sag_organic&srsltid=AfmBOopQ8mvNqg5lGwwlAkQCehRxJpCdek945-xDWR0cbzF398RNml3XT0Y

[winston]

vested

<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

[behappyalways]

Now this is something. Pop Mart's market cap is more than double than that of Hasbro & Mattel combined!
https://x.com/AyeshaTariq/status/1944988139413504227

[winston]

<Alert>POP MART Foresees 1H Profit to Soar No Less than 350% YoY

POP MART (09992.HK) issued a positive profit alert.

It was expected that the Group’s revenue for the six months ended 30 June 2025 (the Period) may increase by no less than 200% YoY, and that the Group’s profit for the Period (excluding unaccounted profit or loss from changes in the fair value of financial instruments) may increase by no less than 350% YoY.

The change in the Group’s operating results is primarily attributable to the increased global recognition of POP MART brand and its IPs, and diversified product categories boosting the Group’s revenue growth, among which revenue from all regional markets of the Group grew rapidly and continuously;
the growing portion of overseas revenue and positive impacts on gross profit and profit from such change of revenue structure, as well as a substantial increase in profit from economies of scale; and constant product costs optimization and strengthened expense control, leading to improved profitability.

Source: AAStocks Financial News

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

[winston]

vested

<Research>Nomura Reiterates POP MART as Industry Top Pick w/ TP Lifted to HKD330, Rating Buy

According to Nomura's research report, POP MART (09992.HK) has issued a positive profit alert predicting its interim revenue/ adjusted earnings to grow by 2 times plus/ 3.5 times YoY.

In Nomura's estimate, POP MART's adjusted net profit attributable to shareholders for 1H25 will reach RMB4.3 billion, exceeding the market's already high expectation of over RMB4 billion.

Related News: JPM Reiterates POP MART as Industry Top Pick w/ TP Added to HKD340

It is also expected that POP MART's management will release a more positive business outlook and guidance during the interim results announcement based on the company's solid business fundamentals.

Nomura raised its target price for POP MART from HKD291 to HKD330 and reiterated the Buy rating. It also kept the company as its top pick in China's consumer sector.

Source: AAStocks Financial News

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

[winston]

<Research>BOCI Lifts POP MART's TP to HKD335.8, Elevates Core Earnings Forecast by 50%+

POP MART (09992.HK) has issued a positive profit alert yesterday (15th) forecasting its 1H25 revenue/ net profit to grow by no less than 200%/ 350% YoY, according to a report from BOCI.

Seeing that its popular IP product Labubu has become a global sensation, BOCI believes the company's strong performance was supported by increased brand awareness, successful expansion in North American and European markets, and operational leverage effects, while other IP products were also gaining popularity.

BOCI reiterated a Buy rating on POP MART, while raising its 2025-26 core earnings forecasts by 55% and 54% as well as its target price from HKD192.1 to HKD335.8.

Source: AAStocks Financial News

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

[winston]

vested

<Research>CICC Raises POP MART's TP to HKD330; Rating Kept Outperform

POP MART (09992.HK) has released a positive profit alert for 1H25, in which it predicted its revenue to grow by no less than two times YoY and its profit during the period to leap by no less than 3.5 times YoY, exceeding market expectations, according to a report from CICC.

In CICC's estimate, POP MART's revenue for 1Q and 2Q25 increased by 1.7 times and 2.25 times YoY respectively, with 2Q revenue growing by more than 50% QoQ.

The company's net profit margin for 1H25 is expected to be 32%, marking a historical high compared to 21.9% and 27.5% in 1H24 and 2H24.

Related News: CLSA Foresees POP MART's Interim Results to Beat; Rating Kept Outperform

CICC lifted its target price for POP MART by 6.5% to HKD330 and maintained the Outperform rating unchanged.

Source: AAStocks Financial News

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

[winston]

vested

Wang Ning: Labubu's Monthly Sales May Hit ~10M Units After Sep; POP MART's Overseas Sales Likely to Surpass Sales in CN

As POP MART (09992.HK) 's dolls have taken the world by storm, Wang Ning, the group's founder, said in an interview with People's Daily that Labubu's monthly sales could reach nearly 10 million units after September this year.

Meanwhile, the group is employing different strategies to avoid malicious speculation in the face of immense demand from around the globe.

Wang also mentioned that POP MART's overseas sales this year are likely to surpass domestic sales at a rate faster than expected.

While the company's total sales were still less than RMB 2 billion during its IPO period (POP MART listed in Hong Kong in December 2020), its revenue last year increased to RMB 13 billion.

He expected that sales in North America would exceed those in Southeast Asia this year, with the overseas market continuously expanding.

Related News - CICC: BANKCOMM/ POP MART/ YUM CHINA/ XPENG-W/ JD LOGISTICS May Be Added to Blue Chip Family

Source: AAStocks Financial News

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

[winston]

not vested

What could go wrong?

Pop Mart - among global leaders in designer toys & blind box collectibles – is expected to score >140% revenue growth and >180% earnings jump this year, driven by robust demand for its proprietary IPs like Labubu and Molly.

Potential near-term headwinds include revenue concentration, regulatory risks and operational challenges - the stock’s trajectory could hinge on transforming core IPs (e.g., Labubu) into sustainable cultural icons.

We believe Pop Mart’s diversified product portfolio, scalability, and innovative model could create a firm medium-term outlook to outweigh near-term risks.

Popular IPs like Pokémon, Hello Kitty, etc. have reaped >US50-150bn global sales and continue to grow.

Pop Mart’s rapid international expansion (1Q25 sales +480%) and thriving omni-channel bring overseas sales to >50% of total by 2025.

In view of its growing pop culture influence and sound prospects in mid-term, we initiate a BUY with target price of HKD312 (at 0.8x PEG).

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=26696

[winston]

not vested

<Research>M Stanley: POP MART (09992.HK) Platform Value May Be Undervalued w/ Potential to Tap into Rich New IP Artistic Resources in US/ Europe/ JP/ Southeast Asia

Morgan Stanley issued a research report saying that it attended POP MART's Pop Toy Show earlier in Beijing.

The broker observed that Twinkle Twinkle booth attracted a large crowd, with its products, including figures, paintings, bags and accessories, selling out quickly.

Related News: DBS Initiates Rating Buy on POP MART w/ TP HKD312

Morgan Stanley believed that Twinkle Twinkle is likely to start contributing significantly to the Company's sales in 2025 and beyond, beginning with limited sales in 2024.

Crybaby products were also popular, including t-shirts, baseball caps, cushions and slippers, with an average price exceeding RMB250.

The broker believed that POP MART's platform value may be underestimated, and noted that the Company currently sells products in 4 regions, but its proprietary IP mainly originates from Greater China, with exceptions like Crybaby from Thailand and Peach Riot from the US.

Morgan Stanley saw great potential for POP MART to tap into the rich artistic resources in the US, Europe, Japan and Southeast Asia.

The success of its IPs seems unpredictable, but POP MART is a company capable of achieving success.

Morgan Stanley believed that POP MART's intrinsic value far exceeds its owned IPs, a point underestimated by the market.

POP MART remains the broker's top pick. Morgan Stanley kept rating at Overweight on POP MART, with a target price of $365, equivalent to a projected 2025 PE ratio of 46x.

AASTOCKS Financial News

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