Understanding the Market | POP MART rose over 4% in the afternoon, Citigroup stated that the IP product market has huge growth potential, and Morgan Stanley expects Q1 sales to double year-on-year

According to Zhitong Finance APP, POP MART (09992) rose more than 4% in the afternoon, and as of the time of writing, it increased by 4.37%, trading at HKD 117, with a turnover of HKD 932 million.

Citi released a research report stating that China's IP product market has enormous growth potential, as its per capita consumption expenditure is still relatively low compared to developed markets. The licensing business deeply connects all consumer sectors, providing extensive opportunities to realize the commercial value of IP, with IP products being a major avenue. The bank sees that high-quality IP supply, product innovation, and supply chain capabilities will drive the upward potential of IP consumption. The bank reiterated its "Buy" rating for POP MART, with a target price of HKD 120, due to its ability to incubate successful proprietary/exclusive IP.

Morgan Stanley released a research report stating that it expects POP MART's sales to double in the fiscal year 2024, with an accelerated year-on-year growth of approximately 135% in the fourth quarter of fiscal year 2024. As for the fiscal year 2025, it is expected that POP MART's sales will grow by 47%; sales in the first quarter of fiscal year 2025 may increase by over 100%, as many popular products launched months ago have quickly sold out, despite more aggressive restocking since the end of the fourth quarter of fiscal year 2024. The bank raised its target price for POP MART from HKD 113 to HKD 135, reiterating its "Overweight" rating, mainly due to upward adjustments of 7%, 19%, and 21% for the company's adjusted earnings per share forecasts for fiscal years 2024 to 2026