Analyst

Steve Zhou, CFA

Equity Bottom-Up

Pop Mart International Group L / Equity Bottom-Up

<ul>
<li>In 1Q24, <a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart International Group L (9992 HK)</a>'s international sales grew around 250% yoy, and made up around one quarter of sales (vs. 17% of sales in 2023). </li>
<li>I now expect 39% sales growth in 2024, driven by 140% yoy growth in the international business and 18% growth in domestic China business. </li>
<li>I further expect a 50% yoy growth in net profit growth in 2024 driven by a 0.8ppt increase in gross margin and 0.5ppt in operating leverage. </li>
</ul>


In 1Q24, Pop Mart International Group L (9992 HK)'s international sales grew around 250% yoy, and made up around one quarter of sales (vs. 17% of sales in 2023). 
I now expect 39% sales growth in 2024, driven by 140% yoy growth in the international business and 18% growth in domestic China business. 
I further expect a 50% yoy growth in net profit growth in 2024 driven by a 0.8ppt increase in gross margin and 0.5ppt in operating leverage. 


Pop Mart (9992 HK):  Accelerating Momentum Internationally; Raising My Estimates

<ul>
<li>The thesis for <a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart International Group L (9992 HK)</a> is the successful expansion of its international business, which made up 13% of sales in 1H23 but is growing exponentially. </li>
<li>This has been proved true in the latest announced 2023 results, with a 135% growth in 2023 for the international business, and a further &gt;100% growth guidance for 2024.</li>
<li>The company is trading at 24x 2024 earnings, assuming a 35% net profit growth in 2024. </li>
</ul>


The thesis for Pop Mart International Group L (9992 HK) is the successful expansion of its international business, which made up 13% of sales in 1H23 but is growing exponentially. 
This has been proved true in the latest announced 2023 results, with a 135% growth in 2023 for the international business, and a further &gt;100% growth guidance for 2024.
The company is trading at 24x 2024 earnings, assuming a 35% net profit growth in 2024. 


Pop Mart (9992 HK):  International Expansion Is For Real

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)</li>
<li>BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)</li>
<li>AMZN US/BABA US: TikTok Shop to launch in Spain (-)</li>
</ul>


NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)
BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)
AMZN US/BABA US: TikTok Shop to launch in Spain (-)


[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart International Group L (9992 HK)</a> announced at noon today a business update on 3Q23.</li>
<li>Overall sales in 3Q23 grew 35-40% yoy, with domestic China sales up 25-30% yoy and international sales up 120-125% yoy. </li>
<li>Thesis intact, as the 3Q23 update showed that the international business continued to grow rapidly at 120-125% yoy growth.</li>
</ul>



Pop Mart International Group L (9992 HK) announced at noon today a business update on 3Q23.
Overall sales in 3Q23 grew 35-40% yoy, with domestic China sales up 25-30% yoy and international sales up 120-125% yoy. 
Thesis intact, as the 3Q23 update showed that the international business continued to grow rapidly at 120-125% yoy growth.


Pop Mart (9992 HK):  Strong 3Q23 Operational Update; Thesis Intact

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart International Group L (9992 HK)</a> presents an interesting story of a Chinese domestic brand going overseas, and potentially being successful overseas (at least in the short-term). </li>
<li>A recent case of a Chinese brand achieving success overseas is <a href="https://www.smartkarma.com/entities/miniso-group-holdings" target="_blank" data-smartkarma-citation="entities:29673:1" rel="noopener">Miniso (MNSO US)</a>, and shareholders of Miniso have been richly rewarded. </li>
<li>Pop Mart trades at a PE of 24x based on estimated 2024 earnings, with around 30% expected net profit growth in 2024E.   </li>
</ul>



Pop Mart International Group L (9992 HK) presents an interesting story of a Chinese domestic brand going overseas, and potentially being successful overseas (at least in the short-term). 
A recent case of a Chinese brand achieving success overseas is Miniso (MNSO US), and shareholders of Miniso have been richly rewarded. 
Pop Mart trades at a PE of 24x based on estimated 2024 earnings, with around 30% expected net profit growth in 2024E.   


Pop Mart (9992 HK):  Short-Term Trading Opportunity On International Expansion

China

Pop Mart International Group Limited operates as a toys wholesales company. The Company provides trendy toys designing, production, marketing, and other services. Pop Mart International Group markets its products worldwide.

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Pop Mart International Group L (9992 HK)

Pop Mart (9992 HK): Accelerating Momentum Internationally; Raising My Estimates

In 1Q24, Pop Mart International (9992 HK)'s international sales grew around 250% yoy, and made up around one quarter of sales (vs. 17% of sales in...

Steve Zhou, CFA

Pop Mart (9992 HK): International Expansion Is For Real

The founder and CEO of Pop Mart, Wang Ning attended the sixth meeting of the Sino-French Entrepreneurs Committee in France and as part of Xi's...

Steve Zhou, CFA

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

Pop Mart (9992 HK): Strong 3Q23 Operational Update; Thesis Intact

Pop Mart announced strong sales growth in 3Q23, with domestic China sales up 25-30% and international sales up 120-125% year-on-year.

Steve Zhou, CFA

Pop Mart (9992 HK): Short-Term Trading Opportunity On International Expansion

Pop Mart (9992 HK) presents an interesting story of a Chinese domestic brand going overseas, and potentially being successful overseas.

Steve Zhou, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pop Mart (9992 HK): Accelerating Momentum Internationally; Raising My Estimates

In 1Q24, Pop Mart International (9992 HK)'s international sales grew around 250% yoy, and made up around one quarter of sales (vs. 17% of sales in...

Steve Zhou, CFA

Pop Mart (9992 HK): International Expansion Is For Real

The founder and CEO of Pop Mart, Wang Ning attended the sixth meeting of the Sino-French Entrepreneurs Committee in France and as part of Xi's...

Steve Zhou, CFA

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

​Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

Pop Mart (9992 HK): Strong 3Q23 Operational Update; Thesis Intact

​Pop Mart announced strong sales growth in 3Q23, with domestic China sales up 25-30% and international sales up 120-125% year-on-year.

Steve Zhou, CFA

Pop Mart (9992 HK): Short-Term Trading Opportunity On International Expansion

Pop Mart (9992 HK) presents an interesting story of a Chinese domestic brand going overseas, and potentially being successful overseas.

Steve Zhou, CFA

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Pop Mart announced strong sales growth in 3Q23, with domestic China sales up 25-30% and international sales up 120-125% year-on-year.