POP MART

BOA Securities Raises FY25-26 Earnings Forecast and Target Price for POP MART

Bank of America Securities released a research report stating that it has raised the expected non-International Financial Reporting Standards (non-IFRS) net profit forecasts for POP MART for 2025 and 2026 by 5% and 6% respectively, and increased the target price from the previous HKD 236 by 17% to HKD 275. The firm has shifted its valuation benchmark from a 2025/26 hybrid to 2026, believing that POP MART is still in the early stages of rapid growth, and that 2026 will better reflect its profitability, maintaining a "Buy" rating. POP MART remains one of the firm's top picks in the Chinese consumer goods sector: (1) As a unique platform company, the firm believes POP MART is best positioned to capitalize on the rising global demand for intellectual property (IP) consumption and the pursuit of emotional value, achieving expansion across consumer demographics and countries; (2) The firm sees multiple driving factors contributing to profit upside potential, including market share growth, globalization, an expanded intellectual property portfolio, and improved profitability. Following the launch of Labubu 3.0, becoming popular in overseas markets, opening new stores in high-visibility locations, launching new intellectual properties/products, and increasing celebrity endorsements through social media may serve as catalysts in the future

BOA Securities Raises FY25-26 Earnings Forecast and Target Price for POP MART

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