Core Viewpoint - The secondary market prices for all products of Pop Mart have declined, particularly for the LABUBU series, despite the company reporting impressive revenue growth for the first half of 2025 [1] Group 1: Market Performance - The price of LABUBU hidden figures has dropped from nearly 1,000 yuan to 679.7 yuan, with some less popular models priced below the official price of 79 yuan [1] - The overall transaction price for the third generation LABUBU complete set has significantly decreased, currently ranging between 600 to 700 yuan [1] Group 2: Financial Performance - Pop Mart reported a remarkable revenue of 13.88 billion yuan for the first half of 2025, representing a year-on-year growth of 204.4% [1] - The adjusted net profit increased by 362.8% to 4.71 billion yuan [1] Group 3: Market Expansion - The importance of overseas markets for Pop Mart is growing, contributing nearly 40% to the revenue, marking the first time that overseas market share has surpassed that of the Chinese market [1]

Summary of Conference Call Notes Industry Overview - The gaming industry is currently valued at approximately 20-21 times earnings, with historical rebounds to around 30 times, indicating significant growth potential [1][4] - Emerging consumer trends are driving the gaming market, particularly among young people who are enthusiastic about console games, mobile games, and platforms like Roblox [5] Key Companies and Performance - Huatuo has evolved into a platform-based gaming company, similar to Tencent and NetEase, with a market capitalization nearing 150 billion RMB and multiple games generating over 5 million USD each [3] - Other notable companies include Giant with its game "Supernatural Action Group," which has shown strong performance even post-summer, and Jibite, which reported better-than-expected mid-year results leading to a 20%-30% stock price increase [3] Investment Opportunities - The gaming sector is characterized by low valuations and high dividends, with Jibite having distributed nearly 7 billion RMB in dividends despite initial financing of only a few billion [4] - The industry is expected to benefit from supportive policies and relaxed regulations, enhancing the overall outlook [3] AR Applications - AR applications are seen as a crucial future development area, with companies like Nvidia benefiting from the demand for AR/VR applications [6] - Meitu and Kuaishou are highlighted as key players in the AR space, with Meitu having a strong position in the female photography market and potential collaborations with tech giants like Google [12] Emerging Consumer Trends - The collectible toy market, represented by Pop Mart, is gaining popularity, especially among young women, with significant success in international markets like Thailand [7][8] - Pop Mart's overseas revenue has reached 60% of total income, with expectations for further growth as the company expands its IP offerings [9] Challenges and Strategies - Pop Mart faces challenges in timely product launches to meet consumer demand, but maintaining a focus on user needs and high-quality production can sustain its competitive edge [10][11] Future Investment Recommendations - Strong emphasis on sectors such as gaming, collectible toys (like Pop Mart), and AI applications (like Meitu and Kuaishou) is advised, with expectations for significant growth in the coming years [13]

Core Viewpoint - The article emphasizes the significance of brand globalization for Chinese companies, using Pop Mart as a case study to illustrate how a company can successfully transition from traditional manufacturing and e-commerce to becoming a globally recognized brand that resonates with consumers emotionally and culturally [3][5][39]. Group 1: Company Overview - Pop Mart, founded 15 years ago, has gained attention recently due to the popularity of its Labubu character, showcasing its evolution from a startup to a significant player in the global market [4][5]. - The company reported impressive financial results, with revenue of 13.88 billion yuan, a year-on-year increase of 204.4%, and a profit of 4.71 billion yuan, up 362.8% [5]. Group 2: Globalization Strategy - Pop Mart's globalization strategy is divided into three phases: online testing, offline expansion, and local integration [18][26]. - The first phase involved using cross-border e-commerce and developing partnerships with local distributors to gauge market interest and consumer preferences [20][19]. - The second phase focused on opening physical stores in prime locations globally, emphasizing the importance of in-person brand experiences [24][25]. - The third phase included localizing products and operations by collaborating with local artists and hiring local teams to better understand cultural nuances [26][27]. Group 3: Brand Philosophy - Pop Mart views its brand as centered around intellectual property (IP), with characters like Molly and Dimoo serving as emotional connectors to consumers rather than mere products [14][16]. - The company aims to create a cultural impact by managing artists and hosting global events, positioning itself as a leader in the cultural toy market [16][38]. Group 4: Challenges and Solutions - Pop Mart faces challenges such as cultural differences, global supply chain complexities, and organizational structure [30][32][34]. - The company addresses cultural barriers by focusing on universal aesthetics and emotional resonance in its IP designs [31]. - To manage supply chain issues, Pop Mart has implemented a robust digital information system for real-time inventory and sales tracking across its global stores [32]. - The organizational structure balances centralized control over brand identity with decentralized decision-making for local market strategies [34][35].

Core Insights - Recently, Pop Mart Supply Chain (Guangdong) Co., Ltd. was established with a registered capital of 10 million RMB, focusing on supply chain management services and wholesale and retail of clothing and accessories [1] Company Overview - The legal representative of the newly established company is Yuan Junjie [1] - The company is wholly owned by Beijing Pop Mart Trading Co., Ltd. [1]

Group 1 - The establishment of Pop Mart Supply Chain (Guangdong) Co., Ltd. was registered on September 8, with a registered capital of 10 million RMB [1] - The legal representative of the new company is Yuan Junjie, and it is wholly owned by Beijing Pop Mart Trading Co., Ltd. [1] - The business scope includes supply chain management services, wholesale and retail of clothing and accessories, general cargo warehousing services, domestic cargo transportation agency, non-residential real estate leasing, network technology services, and information technology consulting services [1]

Core Viewpoint - Recently, Pop Mart Supply Chain (Guangdong) Co., Ltd. was established with a registered capital of 10 million RMB, focusing on supply chain management and various retail services [1][2]. Company Information - The legal representative of the company is Yuan Junjie [1][2]. - The company is wholly owned by Beijing Pop Mart Trading Co., Ltd. [1]. - The registered capital is 10 million RMB [1][2]. - The company is classified as a limited liability company (sole proprietorship) [2]. Business Scope - The business scope includes supply chain management services, wholesale and retail of clothing and accessories, ordinary goods warehousing services, domestic freight forwarding, non-residential real estate leasing, network technology services, and information technology consulting services [1][2]. - Additional activities include sales of textiles, jewelry, bags, shoes, electronic products, and various consumer goods [2].

Summary of Pop Mart Conference Call Company Overview - **Company**: Pop Mart - **Date**: September 8, 2025 Key Points Industry and Market Performance - **Pricing Strategy**: The new mini Labubu series is priced at 79 yuan, making it less favorable for scalpers and more accessible for regular consumers [2][3] - **Sales Growth**: In August, Pop Mart's Douyin channel experienced significant year-on-year growth, matching the absolute values of January's peak season, driven by restocking and new product launches [2][4] - **Offline Store Performance**: The company reported a nearly 60% year-on-year growth in offline store efficiency, outperforming other brands in the industry, indicating strong offline operational capabilities [2][4] Product Development - **New Product Launches**: August saw a notable increase in new product releases compared to July, with popular items including the "Big Wind Day" plush doll and the mini Labubu series, which features 28 products [3] - **Future Products**: Upcoming releases include anniversary products, Halloween specials, and region-specific items, which are expected to generate positive market responses [2][6] Channel Strategy - **Douyin Channel Success**: The Douyin channel's performance is attributed to successful product launches and influencer-driven consumption, with innovative attempts from the Helono Home account also performing well [4] - **Store Adjustments**: Ongoing adjustments in domestic offline stores include relocating shops to better positions and consolidating smaller stores into larger ones, which is expected to enhance store efficiency and brand visibility in the long term [7] International Expansion - **Overseas Market Growth**: The company is rapidly expanding internationally, with new store openings in North America and Southeast Asia in August, indicating a proactive global strategy [2][8] - **Global Brand Interest**: Google Trends data shows sustained high search interest in the Pop Mart brand globally, particularly in the UK, where related keywords have surged [9] Organizational Changes - **Structural Adjustments**: In April, Pop Mart restructured its organization to enhance market responsiveness, with a focus on local product development and a strengthened middle office to support various market segments [10] - **Global Product Strategy**: Currently, 95% of products are global, with plans to increase local product offerings to 10%-15% in the future [10] Future Directions - **Strategic Focus**: The company aims to integrate domestic and international IPs through a global channel strategy, which is expected to unlock greater growth potential [11] - **Investment Outlook**: Given the recent adjustments and product/channel performance, there is a high certainty of future earnings growth, suggesting that investors should continue to monitor the company's developments [12]

Core Viewpoint - The recent sharp decline in the secondary market prices of LABUBU has led to a significant drop in Pop Mart's stock price, but Morgan Stanley remains optimistic, suggesting that the market may be overreacting to high-frequency data [1][3]. Group 1: Stock Performance and Market Reaction - On September 8, Pop Mart's stock fell by 7.5%, closing below 300 HKD, primarily due to the plummeting prices of its LABUBU series in the secondary market [1][3]. - The LABUBU series, once valued at over 10,000 HKD, has seen its prices halved, leading to a rapid cooling of the overall collectible toy speculation [1][4]. Group 2: Morgan Stanley's Analysis - Morgan Stanley's report indicates that the current stock price fluctuations are driven more by technical and emotional factors rather than a deterioration in fundamentals [3][6]. - The report emphasizes that secondary market prices do not accurately reflect the true supply and demand situation, as the secondary market constitutes only a small portion of total supply and demand [3][6]. Group 3: LABUBU Price Trends - Data shows that the mini LABUBU series, released on August 28, saw its hidden variants initially trading close to 1,000 HKD, but prices began to decline within a week, with current secondary prices ranging from 1,400 to 1,850 HKD [4][5]. - The third generation of LABUBU has also experienced a price drop, with transaction prices falling from 1,380 HKD in June to the current range of 600 to 700 HKD [4]. Group 4: Market Sentiment and Speculation - The drastic price fluctuations have led some speculators to announce a "pause in purchases," as they await a market recovery, facing potential losses from their previous investments [5][6]. - Morgan Stanley notes that this is the third instance of market concern driven by LABUBU's secondary prices, indicating a pattern of overreaction [6]. Group 5: Long-term Growth Prospects - Morgan Stanley maintains an "Overweight" rating on Pop Mart, viewing it as a "Top Pick," and believes that the current valuation offers investment opportunities despite the recent volatility [8]. - LABUBU is recognized as a key growth driver, contributing 35% of sales in the first half of 2025, but other IPs like Molly, Skullpanda, Dimoo, and Crybaby also contribute significantly to revenue [8][9]. - The company is noted for its disciplined growth strategy, with a 117% increase in offline sales in Greater China, yet only adding 12 new stores, reflecting a cautious approach to expansion [9].

Group 1 - The stock price of Pop Mart (09992.HK) experienced significant volatility, closing at HKD 287.8 per share with a decline of 7.04%, raising concerns about the pricing system in the secondary market for the trendy toy industry [1] Group 2 - Data from the secondary trading platform indicates that the resale price of the fourth generation LABUBU mini set has dropped from an initial range of HKD 1400 to around HKD 1850 within a week [3] - Specific less popular models, identified by letters "I" and "N", have seen their prices fall below HKD 100, with current transaction prices around HKD 81 [3] - Rare hidden models have also experienced significant price corrections, with one model featuring a "heart" pattern averaging a price drop of 6.68% over three days, reaching a low of HKD 595, while another unnamed hidden model saw a 9.96% decline, with a minimum transaction price of HKD 498 [3] - The downward price trend is not limited to new series, as early generation LABUBU toys have also faced pressure, with second-hand prices declining by HKD 3 to HKD 11 daily, causing asset depreciation for some classic model holders [3] - This cross-generational price adjustment reflects a re-evaluation of specific IPs within the collectible market [3]

Core Insights - The article discusses the potential decline of the Labubu craze, indicating that interest may be waning in the market [1] Group 1: Market Trends - Recent sales data shows a significant drop in Labubu merchandise, with a reported decrease of 30% in sales over the last quarter [1] - Social media engagement related to Labubu has also seen a decline, with a 25% reduction in mentions and interactions compared to previous months [1] Group 2: Consumer Behavior - Surveys indicate that consumer interest in Labubu products has shifted, with only 40% of respondents expressing continued enthusiasm for the brand [1] - The demographic of Labubu's primary consumers is changing, with younger audiences showing less interest than before [1] Group 3: Competitive Landscape - Competitors in the market are beginning to capitalize on the potential decline of Labubu, launching new products that appeal to the same consumer base [1] - The article highlights that several brands have reported a 15% increase in sales as they attract former Labubu customers [1]