Core Viewpoint - Morgan Stanley believes that Pop Mart's fundamentals have not changed but have become stronger, and the market's panic presents an excellent allocation opportunity [1] Group 1: Rating and Price Target Adjustment - On October 15, Morgan Stanley upgraded Pop Mart's rating from "Neutral" to "Overweight" and raised the target price from HKD 300 to HKD 320 [1] - The adjustment is based on two key factors: the sustained popularity of Labubu and the success of the new IP "Twinkle Twinkle" [1] Group 2: Labubu's Performance - Labubu's production capacity has increased tenfold compared to Q1 2025, yet the Labubu 3.0 and Mini Labubu series remain sold out at all sales points, dispelling market concerns about demand sustainability [2] - The resale price of the Halloween "Why So Serious" plush series featuring Labubu reached a premium of 290% in the secondary market [3] Group 3: New IP Development - The new IP "Twinkle Twinkle" is rapidly becoming a new growth driver, with products from a recent Halloween series selling out within minutes on major online platforms [4] - The secondary market premium for "Twinkle Twinkle" reached 130%, indicating strong demand and a real fan base [5] Group 4: Market Sentiment and Valuation - Pop Mart's stock price has dropped 24% from a recent high of HKD 335.40 to HKD 254, while the Hang Seng Index has risen by 7% during the same period [6][7] - Morgan Stanley predicts that Pop Mart's sales and adjusted profits will grow by 165% and 276% year-on-year in 2025, respectively, with continued growth in 2026 [10] Group 5: Global Supply Chain Strategy - Morgan Stanley believes that the financial impact of global trade tensions on Pop Mart will be limited, as the company has prepared inventory for the 2025 holiday season [11] - The company has the ability to raise prices to offset rising costs, having successfully increased blind box prices by 12% and plush toy prices by 27% in April 2025 [11] - Pop Mart is planning six global manufacturing centers to support long-term global expansion, with sales contribution from the Americas expected to rise from 21% in 2025 to 28% in 2027 [13]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (70.20%), Gree Power (69.89%), and COSCO Shipping Energy (69.67%) [1] - The largest increases in holding amounts over the last five trading days were seen in the Tracker Fund of Hong Kong (+54.33 billion), Pop Mart (+20.85 billion), and Xiaomi Group-W (+19.90 billion) [1] - The largest decreases in holding amounts were recorded for SMIC (-52.72 billion), Alibaba-W (-41.72 billion), and Tencent Holdings (-37.58 billion) [2] Group 1: Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding ratio of 70.20% with 9.742 billion shares [1] - Gree Power (01330) has a holding ratio of 69.89% with 283 million shares [1] - COSCO Shipping Energy (01138) has a holding ratio of 69.67% with 903 million shares [1] - Other notable companies include Kaisa New Energy (67.66%), China Shenhua (67.54%), and China Southern Power Grid (67.49%) [1] Group 2: Recent Increases in Holdings - Tracker Fund of Hong Kong (02800) saw an increase of +54.33 billion with a change of +20.456 million shares [1] - Pop Mart (09992) experienced an increase of +20.85 billion with a change of +7.6387 million shares [1] - Xiaomi Group-W (01810) had an increase of +19.90 billion with a change of +4.02238 million shares [1] - Other companies with significant increases include China Mobile (+16.37 billion) and Meituan-W (+13.69 billion) [1] Group 3: Recent Decreases in Holdings - SMIC (00981) had a decrease of -52.72 billion with a change of -6.9346 million shares [2] - Alibaba-W (09988) saw a decrease of -41.72 billion with a change of -2.58192 million shares [2] - Tencent Holdings (00700) experienced a decrease of -37.58 billion with a change of -599.36 thousand shares [2] - Other companies with notable decreases include Huahong Semiconductor (-10.00 billion) and WuXi Biologics (-9.54 billion) [2]

Core Insights - In the first half of 2025, Pop Mart achieved revenue of 13.876 billion RMB, surpassing Disney's toy business to become the second-largest player in the global toy industry, only behind Lego [1] - Pop Mart's success is attributed to its unique business model that relies on popular IPs and a strong social media presence, rather than traditional storytelling and content-driven strategies [7][8] Revenue and Market Position - Pop Mart's revenue of 13.876 billion RMB in the first half of 2025 marks a significant milestone, allowing it to overtake Disney in the toy sector [1] - The company's stock price has increased by over 165% in the past year, driven by the popularity of its IP "Labubu" [7] Product Demand and Market Dynamics - New product launches often sell out quickly, with significant price increases in the secondary market; for example, a blind box originally priced at 1,272 RMB is reselling for 1,900 RMB, reflecting a 49% increase [3] - The offline stores are experiencing similar demand, with many products out of stock and no immediate restock plans [4][5] Innovation and Business Strategy - Pop Mart has shifted from a content-driven IP development model to a data-driven approach, focusing on user engagement and real-time market feedback to optimize product design [8] - The company has successfully created emotional connections with consumers through its IPs, allowing them to express their identities and emotions through the products [9]

Core Insights - The Hong Kong stock market experienced significant net selling from northbound capital, totaling HKD 54.43 billion, with the Shanghai-Hong Kong Stock Connect seeing a net sell of HKD 63.1 billion and the Shenzhen-Hong Kong Stock Connect a net buy of HKD 8.66 billion [2] Group 1: Stock Performance - Alibaba-W (09988) was the most actively bought stock, with a net inflow of HKD 38.09 billion, while it had a total buy amount of HKD 71.32 billion and sell amount of HKD 33.23 billion [3] - Semiconductor stocks showed divergence, with Hua Hong Semiconductor (01347) receiving a net buy of HKD 4.45 billion, while SMIC (00981) faced a net sell of HKD 6.42 billion [6] - Xiaomi Group-W (01810) saw a net buy of HKD 2.96 billion, supported by promotional activities and new product launches [7] Group 2: Company Announcements - Shandong Gold (01787) announced an expected net profit for the first three quarters between HKD 3.8 billion and HKD 4.1 billion, representing a year-on-year increase of 83.9% to 98.5% [8] - Tencent (00700) is expected to report stable performance in its upcoming Q3 earnings, with total revenue and profit anticipated to meet or exceed expectations [7] - The semiconductor sector is expected to benefit from increased domestic production capabilities and rising prices in memory chips, creating investment opportunities [6]

Core Insights - David Beckham's recent visit to a Pop Mart store in Shanghai and his social media posts featuring the LABUBU Manchester United special edition have amplified the emotional value of LABUBU, contributing to its global popularity [2][2][2] Company Performance - Pop Mart's 2025 semi-annual report indicates a revenue of 13.88 billion yuan, representing a year-on-year growth of 204.4%, and an adjusted net profit of 4.71 billion yuan, up 362.8% year-on-year [2][2][2] - The revenue from LABUBU's category, THE MONSTERS, reached 4.81 billion yuan, accounting for 34.7% of total revenue [2][2][2] - Other product lines such as MOLLY, SKULLPANDA, CRYBABY, and DIMOO each surpassed 1 billion yuan in revenue [2][2][2] - The plush toy category generated 6.14 billion yuan in revenue, marking its first time exceeding the revenue from figurines [2][2][2]

Core Viewpoint - The article highlights the rising popularity of LABUBU, a product from Pop Mart, driven by celebrity endorsements, particularly from David Beckham, which has significantly boosted the company's financial performance [3][4]. Financial Performance - Pop Mart reported a revenue of 13.88 billion yuan in the first half of 2025, marking a year-on-year increase of 204.4% [4]. - The adjusted net profit for the same period reached 4.71 billion yuan, reflecting a year-on-year growth of 362.8% [4]. - LABUBU's segment, THE MONSTERS, generated 4.81 billion yuan in revenue, accounting for 34.7% of total revenue [4]. - Other product lines such as MOLLY, SKULLPANDA, CRYBABY, and DIMOO also surpassed 1 billion yuan in revenue each [4]. - The plush toy category achieved a revenue of 6.14 billion yuan, surpassing the revenue from figurines for the first time [4].

Core Insights - Apple's CEO Tim Cook's visit to China highlights the company's strategic focus on the Chinese market, particularly in the context of cultural engagement and new product launches [3][4][6] - The collaboration with LABUBU, a popular Chinese IP, signifies Apple's intent to connect with younger consumers and enhance its brand's emotional resonance in a saturated smartphone market [4][6][7] Group 1: Tim Cook's Visit and Activities - Tim Cook's visit included interactions with LABUBU creator Long Jiasheng and Pop Mart founder Wang Ning, showcasing Apple's commitment to cultural engagement [3][4] - Cook's presence at the LABUBU exhibition as the first stop of his China trip indicates a strategic move to tap into the growing trend of cultural and emotional branding [4][6] Group 2: Market Context and Implications - The launch of eSIM services by major Chinese telecom operators coincided with Cook's visit, reflecting a significant shift in the domestic communication landscape [2] - Apple's announcement of the iPhone Air pre-sale aligns with its efforts to maintain relevance in a competitive market, emphasizing the importance of cultural connections [2][3] Group 3: LABUBU and Pop Mart's Market Impact - LABUBU has emerged as a leading IP for Pop Mart, contributing significantly to the company's revenue, with a reported income of approximately 48.14 billion yuan in the first half of 2023 [6] - The cultural appeal of LABUBU, combining elements of Nordic mythology and emotional design, enhances its marketability and aligns with current consumer trends [6][7] Group 4: Broader Cultural Significance - The collaboration between Apple and LABUBU reflects a growing trend of cross-industry partnerships that leverage cultural IP to enhance brand identity and consumer engagement [5][8] - LABUBU's popularity among younger consumers illustrates a shift towards accessible luxury and emotional connection, breaking down traditional barriers in consumer branding [7][8]

Core Insights - The Hang Seng Index rose by 1.84% on October 15, with southbound trading totaling HKD 1,436.45 billion, resulting in a net sell of HKD 54.43 billion [1] Trading Activity - Southbound trading saw a total buy of HKD 691.01 billion and a total sell of HKD 745.44 billion, leading to a net sell of HKD 54.43 billion [1] - The cumulative trading amount for the Stock Connect (Shenzhen) was HKD 536.02 billion, with a net buy of HKD 8.66 billion, while the Stock Connect (Shanghai) had a cumulative trading amount of HKD 900.43 billion, resulting in a net sell of HKD 63.10 billion [1] Active Stocks - Alibaba-W had the highest trading volume among southbound stocks, with a total trading amount of HKD 111.82 billion and a net buy of HKD 8.57 billion, closing up by 3.86% [1][2] - Other notable stocks included Huahong Semiconductor with a total trading amount of HKD 47.25 billion and a net buy of HKD 4.46 billion, and Xiaomi Group-W with a net buy of HKD 2.96 billion [2] - The stock with the highest net sell was the Tracker Fund of Hong Kong, with a net sell of HKD 85.75 billion, despite a closing price increase of 1.68% [1][2] Continuous Net Buying - Xiaomi Group-W has seen continuous net buying for 8 days, with a total net buy amount of HKD 59.28 billion during this period [2]

Core Viewpoint - On October 15, the Hang Seng Index rose by 1.84%, closing at 25,910.60 points, while southbound funds through the Stock Connect recorded a net sell of 5.443 billion HKD [1]. Group 1: Market Activity - The total trading amount for the Stock Connect on October 15 was 143.645 billion HKD, with a net sell of 5.443 billion HKD [1]. - The Shanghai Stock Connect had a trading amount of 90.043 billion HKD, with a net sell of 6.310 billion HKD, while the Shenzhen Stock Connect had a trading amount of 53.602 billion HKD, with a net buy of 0.866 billion HKD [1]. Group 2: Active Stocks - In the Shanghai Stock Connect, Alibaba-W had the highest trading amount at 7.132 billion HKD, followed by the Tracker Fund of Hong Kong and SMIC, with trading amounts of 6.349 billion HKD and 5.361 billion HKD, respectively [1]. - Tencent Holdings recorded the highest net buy amount at 0.612 billion HKD, while the Tracker Fund of Hong Kong had the highest net sell amount at 6.271 billion HKD, closing with a price increase of 1.68% [1]. - In the Shenzhen Stock Connect, Alibaba-W also led with a trading amount of 4.049 billion HKD, followed by SMIC and Tencent Holdings, with trading amounts of 3.042 billion HKD and 2.685 billion HKD, respectively [2].

Core Insights - Apple's CEO Tim Cook's visit to China highlights the company's strategic focus on the Chinese market, particularly in the context of cultural engagement and consumer trends [3][6] - The collaboration with LABUBU and the presence of Cook at the exhibition signify Apple's intent to deepen emotional connections with younger consumers in a saturated smartphone market [3][6] Group 1: Tim Cook's Visit and Activities - Tim Cook's visit included an unexpected appearance at the LABUBU exhibition, showcasing his engagement with local culture and creativity [1][3] - Cook interacted with LABUBU creator Long Jiasheng and Pop Mart founder Wang Ning, emphasizing the importance of cultural dialogue in Apple's strategy [3][4] - The visit coincided with significant developments in China's telecom industry, with major operators announcing eSIM services, indicating a pivotal moment for technology in the region [1] Group 2: LABUBU and Pop Mart's Market Impact - LABUBU, as a leading Chinese original IP, has gained immense popularity among the "Z generation" and has successfully penetrated international markets, enhancing its commercial value [3][6] - Pop Mart reported a revenue of approximately 13.876 billion yuan for the first half of 2025, a year-on-year increase of 204.4%, with LABUBU being a key driver of this growth [6] - The unique cultural elements of LABUBU, combining Nordic mythology with emotional design, resonate with consumers and contribute to its market success [6][7] Group 3: Cultural Significance and Brand Strategy - Cook's focus on cultural interactions, such as collaborations with artists and creators, reflects a broader strategy to enhance Apple's brand relevance in diverse markets [4][5] - The emotional connection fostered by products like LABUBU allows Apple to reach a wider audience beyond traditional business elites, appealing to younger consumers [7] - Pop Mart's approach to art toys as a new medium for artistic expression aligns with Apple's vision of creativity and innovation, reinforcing the brand's cultural significance [7]