- Pop Mart’s profit is expected to more than double, with a net income estimate of 2.71 billion yuan.
- Total revenue estimate stands at 12.27 billion yuan, with significant contributions from China (7.31 billion yuan) and Hong Kong, Macau, and other markets (4.57 billion yuan).
- The company is predicted to achieve a gross profit margin of 65.1%, alongside an operating profit estimate of 3.31 billion yuan.
- Selling and distribution expenses are expected to reach 3.47 billion yuan, with an adjusted net income estimate of 2.83 billion yuan.
- Analysts, including Citi, highlight Pop Mart’s strong IP incubation and expansion efforts, alongside growing global recognition as key growth drivers.
- Pop Mart is well-positioned to capture the growing trend of “spiritual consumption” among young consumers through diverse IP characters and engaging marketing.
- Success of iconic IPs like LABUBU is expected to continue, with category expansion and new product launches extending IP life cycles.
- Long-term strategies include IP commercialization beyond pop toys and medium-term store expansion to fuel growth.
- Critical expansion of the supply chain to regions such as Southeast Asia aims to optimize the cost structure.
- Analysis shows a market consensus with 36 buys, 2 holds, and an average price target of HK$117.51, reflecting an 8.1% downside from the current market price.
- In the past year, Pop Mart’s shares have increased by 388.6%, outperforming the HSI Index, which grew by 44.9%.
- Earnings release is anticipated on March 26.
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Pop Mart International Group L on Smartkarma
Analyst coverage of Pop Mart International Group L on Smartkarma has been positive recently. David Mudd, in the report “BUY/SELL/HOLD: Hong Kong Stock Updates (October 30)“, highlighted Pop Mart’s impressive 3Q revenue performance, with a 440% growth in revenue outside China. This momentum, along with a significant increase in international revenue, led DB to raise its target price to $88 for the company. Additionally, Citic Securities was maintained as a BUY by Huatai, with a target price increase to $28.81, showing optimism in the consumer discretionary sector and the market as a whole.
Furthermore, Devi Subhakesan‘s insights in “Weekly Consumer Tales: Pop Mart’s Unique Appeal” emphasized Pop Mart’s strong sales growth fueled by the “red lipstick effect” despite weak consumer spending in China. This positive sentiment towards Pop Mart’s performance aligns with the overall trend of bright spots in the consumer industry. The upbeat reports from independent analysts provide valuable information for investors considering Pop Mart International Group L within the ever-evolving market landscape.
A look at Pop Mart International Group L Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Pop Mart International Group Limited, a toys wholesales company, has received promising scores in various aspects on the Smartkarma Smart Scores. With a strong focus on growth, resilience, and momentum, the company is poised for a positive long-term outlook. With high scores in growth and momentum, Pop Mart International Group is showing potential for future expansion and market performance. Additionally, its resilience score suggests a sturdy foundation that can weather various market conditions.
While the company’s value and dividend scores are moderate, the overall outlook remains optimistic due to the exceptional scores in growth, resilience, and momentum. Pop Mart International Group’s global presence in providing trendy toys designing, production, and marketing services positions it well for sustained success in the industry.
### 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. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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