Goldman Sachs raises Miniso's target price to 56 yuan, maintains POP MART's "Neutral" rating

Goldman Sachs research report indicates that POP MART (09992.HK) saw its stock price rise following strong outlook after the disclosure of its performance in the first half of the year, followed by fluctuations. This is believed to reflect sentiment volatility regarding the slowdown in high-frequency data, particularly in the second-hand market prices. The report suggests that this correction is more related to the company's increased monetization—such as the significantly higher release volume of the first batch of mini Labubu compared to the previous series, which supports profit growth. Goldman Sachs believes that strong earnings will continue to provide some support for valuations.

Goldman Sachs further points out that another IP retailer, Blippo (00325.HK), has accelerated product launches compared to July, but mainly based on existing IP. New products will play an important role in the accelerated growth targets for the second half of the year, but Goldman Sachs believes that the channel penetration of the new product line and the growth of mind share among new customer groups are key areas to watch.

Regarding Miniso (09896.HK)(MNSO.US), Goldman Sachs states that its valuation has rebounded to a forecasted price-to-earnings ratio in the high teens (approximately 16 to 19 times) after exceeding expectations in the second quarter, which brings more confidence to the market, but still considers the growth outlook to be relatively low. The newly launched proprietary IP is the focus of attention for management and investors.

Goldman Sachs sets a target price of HKD 350 for POP MART, with a rating of "Neutral." Goldman Sachs raised Miniso's 12-month target price, increasing the U.S. stock from USD 25.3 to USD 29, and the Hong Kong stock target price from HKD 49 to HKD 56, based on a forecasted combined price-to-earnings ratio of 20 times for this and next year, maintaining a "Buy" rating. Goldman Sachs lowered Blippo's target price from HKD 106 to HKD 93, based on a forecasted combined price-to-earnings ratio of 22 times for this and next year, with a rating of "Neutral."