In a report released by Citic Securities, Pop Mart (09992.HK) currently has excellent business performance. In the second quarter, domestic business is expected to continue to grow rapidly, while localization work continues to be pushed forward overseas in high-speed growth. In addition, category expansion has been orderly implemented, and the annual profit forecast has been raised, reiterating bullish sentiment for the company's broad prospects for long-term growth. Maintaining an outperform industry rating, the target price was raised by 15% to HKD 46.

Citic Securities believes that with the increasing proportion of new product categories such as plasticine and building blocks replacing externally sourced products, smooth progress in overseas markets, an increase in revenue proportion, and the gradual commissioning of production capacity in Vietnam, the company's gross margin is expected to remain stable and rise steadily.

Considering the good recovery of domestic store efficiency, the second quarter will continue to grow rapidly. Thailand, an important overseas market, has achieved a breakthrough, and it is expected to accelerate growth throughout the year. The forecast for the company's adjusted net profit in 2021 and 2022 was upgraded by 7% to RMB 175 million and RMB 225 million, respectively.