POP MART: No Significant Increase in US Store Openings, Emphasizing Improved Quality Instead

The analyst rating for POP MART (09992.HK) is a "Buy" based on several factors highlighted in the UBS research report. Despite the company's sales exceeding expectations, management is prioritizing long-term development over reckless expansion. They are addressing weaknesses related to rapid growth by optimizing internal structures, channel operations, IP management, and supply chain capabilities. This strategic focus aims to align the internal system with current sales and establish a solid foundation for future growth. Additionally, the company plans to launch new product series during the peak season in the fourth quarter, although some product launches, such as Labubu 4.0, are postponed to next year due to a decline in popularity. UBS has adjusted the target price to HKD 380 from HKD 435, reflecting updated higher Beta coefficient assumptions based on the cash flow discount model. Overall, the combination of strategic management focus and planned product launches supports the "Buy" rating.

The analyst rating from BofA Securities for POP MART (09992.HK) is based on several key reasons: 1. Enhanced IP Operations: The company is continuously improving its intellectual property (IP) operations in the US market, which is seen as a significant positive development. 2. Increased Exposure: The character Labubu has gained substantial visibility through various high-profile events, such as the Macy's Thanksgiving Parade and appearances at notable locations like the Empire State Building and NBA games, which have attracted attention on social media. 3. Strategic Offline Activities: Since the fourth quarter of 2025, POP MART has launched more offline IP activities, including a pop-up store for Skullpanda and collaborations with popular media, which are expected to drive engagement and sales. 4. Positive Outlook for 2025: The broker believes that the high season in the US during the fourth quarter of 2025 may provide strong support for the company's results, which could alleviate investor concerns about the following year. 5. Valuation and Growth Projections: BofA Securities maintains a Buy rating with a target price of $400, suggesting that the current valuation reflects a projected 2026 price-to-earnings (PE) ratio of 15x, along with a forecasted compound annual growth rate (CAGR) of 34% in net profit from 2025 to 2027. These factors collectively contribute to the positive analyst rating for POP MART.

The analyst rating for POP MART (09992.HK) is Overweight, with a target price of HKD382. This positive outlook is based on several factors highlighted in Morgan Stanley's report: 1. Sales Growth Outlook: The sales growth outlook for POP MART until 2026 has turned more positive, indicating that the company has not yet fully utilized all its growth levers by 2025. 2. Tactical Adjustments: The company is making ongoing tactical adjustments that emphasize a focus on business quality and sustainable growth. 3. Strong Pre-orders: The report notes that Labubu pre-orders contributed to better-than-expected results for 3Q25. 4. Sales Model Resumption: POP MART has resumed its in-stock sales model, which is expected to help manage product lifecycle effectively and promote recurring customer growth. 5. Positive Management Expectations: Management anticipates strong sales in 4Q25 due to more festive events and a robust product pipeline. These factors collectively support the positive analyst rating and target price for the company.

The analyst rating for POP MART (09992.HK) is a "Buy" based on the company's strong 3Q25 operational data and its potential for growth through direct-to-consumer (D2C) expansion and internationalization. HSBC Global Research believes that despite market reactions and differing interpretations of the data, POP MART has the capability to overcome challenges and continue developing as an IP-based trend toy platform. The target price is maintained at HKD392.5, reflecting confidence in the company's future prospects.