Jingwu Financial News | Shanghai Pudong Development Bank International Research indicated that in the past two months, the popularity of the Pop Mart (09992) Monsters series IP has surged rapidly, with its discussion and topic levels among consumers far exceeding the bank's expectations. This is largely attributed to the star effect and the rapid dissemination of Labubu on social media. The revenue from the Monsters series saw a significant year-on-year growth of 292% in 1H24, with its revenue share rising to 13.7%, ranking second among all IPs. Based on the sustained increase in recent popularity, the bank expects the growth rate of Monsters in the second half of the year to far exceed that of the first half, and its revenue share is expected to rise to first place. At the same time, the strong sales of Monsters are likely to drive the overall revenue growth of the company to continue accelerating in 4Q24, also bringing significant potential for revenue performance in 2025.

The bank stated that the share price of Pop Mart has significantly risen nearly 300% year-to-date. This increase has deterred many investors who have yet to hold positions. However, based on the bank's relatively conservative profit forecast for 2025, the current share price reflects a P/E ratio of only 22.7x for 2025 (with a PEG of less than 0.4x). The bank believes that as the certainty of the company's long-term growth trends and outlook continues to strengthen, the company's value will further be recognized by the market, and the valuation level still has considerable upward potential. Based on a more optimistic long-term growth outlook, the bank has raised its long-term growth forecast for overseas markets, thereby increasing the company's target price to HKD 108 (based on DCF), maintaining a 'buy' rating, and keeping Pop Mart as a preferred choice in consumer discretionary.