Morgan Stanley: POP MART's strategy focuses on sustainable growth, with sales growth turning more positive next year

AASTOCKS
2025.10.30 08:51

Morgan Stanley's report indicates a more positive outlook on POP MART (09992.HK) sales growth through 2026, as the firm believes the company has not yet fully unleashed all growth momentum by 2025. Its ongoing tactical adjustments highlight a clear focus on business quality and sustainable growth. The rating is "Overweight," with a target price of 382 yuan.

Morgan Stanley stated that Labubu's pre-orders drove better-than-expected performance in the third quarter of 2025, while POP MART has resumed its spot sales model to better manage product life cycles and promote repeat customer growth. Management expects strong sales in the fourth quarter due to more festive occasions and a strong product reserve.

U.S. offline sales continue to grow, benefiting from a more diversified IP portfolio and high store efficiency. More high-traffic flagship stores are expected to open between 2026 and 2027. U.S. online sales may be temporarily affected by a reduction in pre-sale activities. The firm believes that new product launches from top IPs should quickly drive accelerated growth

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