Jinwu Finance | Bocom intl's research reports indicate that since 2024, Pop Mart (09992) has consistently delivered impressive performance, with overall revenue expected to grow year-on-year by 120% to 125%. Looking ahead, the online business will benefit from multi-channel layout and increased brand awareness, while the offline business will drive growth through an increase in store numbers and efficiency. The overseas business is expected to continue benefiting from store expansion and a successful localization strategy. The key to performance growth lies in capturing growth opportunities in the toy industry and addressing diverse consumer demands.

The report states that Pop Mart leads the industry in terms of IP reserve and overseas expansion. The company has enriched its IP portfolio by tapping into external artists and developing its own design team, reducing reliance on a single key IP. Refined operations and a localization strategy have resulted in a positive response in overseas markets. In the future, with an increase in offline stores and improvement in online layout, the contribution from overseas markets is expected to surpass that of mainland China.

Considering the rapid development of China’s toy market and Pop Mart's mature operation throughout the industry chain, it is expected to capture industry growth and demonstrate quality results in overseas expansion. The first coverage gives Pop Mart a buy rating, with a target price of 103.65 HKD.