Core Viewpoint - Pop Mart (09992) has seen a nearly 4% increase in stock price, reaching a historical high of 339.4 HKD, driven by the successful launch of new products and strong financial performance [1] Financial Performance - In the first half of the year, Pop Mart achieved revenue of 13.88 billion HKD, representing a year-on-year growth of 204.4% [1] - The adjusted net profit for the same period was 4.71 billion HKD, with a year-on-year increase of 362.8% [1] - The gross profit margin reached 70.3%, an increase of 6.3 percentage points year-on-year, marking a historical high [1] Product Launch and Market Response - Recently, Pop Mart launched several new products, including the "Starry Dream Meteorological Bureau" plush blind box priced at 79 HKD each and 474 HKD per box, and the "Light Up Series" scene figurine blind box also priced at 79 HKD each and 711 HKD per box [1] - The MOKOKO rubber plush blind box, priced at 199 HKD each, gained significant attention prior to its sale [1] - The new products sold out within seconds on Pop Mart's official mini-program and major e-commerce platforms, causing some platforms to experience lag and temporary crashes due to high traffic [1] Future Outlook - The Chairman and CEO of Pop Mart, Wang Ning, expressed optimism about achieving 20 billion HKD in revenue this year, suggesting that reaching 30 billion HKD is also feasible [1] - On August 22, it was announced that Pop Mart will be included in the Hang Seng Index, with the change effective from September 8 [1]

Core Viewpoint - Pop Mart (09992) has seen a significant stock price increase, reaching a historical high of 339.4 HKD, driven by strong sales of newly launched products and impressive financial performance in the first half of the year [1] Financial Performance - In the first half of the year, Pop Mart achieved a revenue of 13.88 billion HKD, representing a year-on-year growth of 204.4% [1] - The adjusted net profit for the same period was 4.71 billion HKD, showing a remarkable year-on-year increase of 362.8% [1] - The gross profit margin reached 70.3%, an increase of 6.3 percentage points compared to the previous year, marking a historical high [1] Product Launch and Market Response - Recently, Pop Mart launched several new products online, including the plush blind box series "Starry Dream Meteorological Bureau" priced at 79 HKD each and 474 HKD per box, and the "Light Up Series" scene figurine blind box also priced at 79 HKD each and 711 HKD per box [1] - The MOKOKO rubber plush blind box, priced at 199 HKD each, gained significant popularity even before its official sale [1] - The new products sold out within seconds across Pop Mart's official mini-program and major e-commerce platforms, causing some platforms to experience lag and temporary crashes due to high traffic [1] Market Index Inclusion - On August 22, the Hang Seng Index Company announced that Pop Mart will be included in the Hang Seng Index constituents, with the change effective from September 8 [1]

Group 1 - Louis Vuitton opened its first independent perfume and beauty boutique in Nanjing, China, with a new lipstick series priced at 1200 yuan and a replacement core at 510 yuan, launching on August 25 [2] - Sporty & Rich launched a limited-time pop-up space "WELLNESS CLUB" in Shanghai, inspired by California's native ecology, promoting a lifestyle of health and self-care [4] - Pas Normal Studios opened its flagship store in Shanghai, focusing on community interaction and cycling culture, following its first store in Beijing [6] Group 2 - TWOI Design Lab opened its first store in Shanghai, targeting young women with a "cream style" aesthetic, offering clothing, shoes, and accessories [7] - TravelDepot plans to open its first global flagship store in Hangzhou, covering 300-500 square meters, focusing on travel-related products and services [10] - ONE MOMENT opened its first store in Chengdu, featuring a modern retro style aimed at young women [14] Group 3 - Anta's first "Rizhao Jinshan" themed store opened in Shenyang, showcasing outdoor and all-weather apparel across three floors [18] - Decathlon responded to rumors of selling 30% of its Chinese subsidiary, emphasizing its commitment to long-term development in China [20] - Pandora announced plans to close 100 stores in China, expanding its initial plan to close 50 stores due to declining sales [22] Group 4 - Xianyu opened its first circular store in Shenzhen, integrating resale and recycling into its business model [21] - Hema Fresh opened four new stores in China, with plans to open nearly 100 more this fiscal year [23] - Aldi is entering the Nanjing market with its first store [24] Group 5 - JD's discount supermarket opened its first store in Zhuozhou, featuring over 5000 high-quality products and plans for rapid expansion [27] - JD's Seven Fresh Food MALL plans to expand nationwide after successful operations in Harbin [28] - TOP TOY completed a new round of financing led by Temasek, achieving a valuation of 10 billion HKD [29] Group 6 - Lao Pu Gold reported a 249.4% increase in sales revenue for the first half of 2025, with an average sales performance of approximately 4.59 billion yuan per store [32] - Pop Mart's revenue for the first half of 2025 reached 138.8 billion yuan, exceeding the total revenue for 2024 [33] - Miniso's revenue for the first half of 2025 was 93.93 billion yuan, with a net profit increase of 11% [34] Group 7 - Amer Sports reported a 42% revenue increase in the Greater China region for Q2 2025 [35] - Li Ning's revenue for the first half of 2025 grew by 3.3% to 148.2 billion yuan [37] - Xtep Group's revenue for the first half of 2025 increased by 7.1% to 68.38 billion yuan [38] Group 8 - Estée Lauder's net sales for the 2025 fiscal year declined by 8%, marking the third consecutive year of decline [39] - Walmart China reported a 30.1% increase in net sales for Q2 2026, with e-commerce sales growing by 39% [41] - Authentic Brands Group announced the acquisition of Guess for 1.4 billion USD, including debt [42]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][6]. Core Views - The company achieved a revenue of 13.876 billion yuan in the first half of 2025, representing a year-on-year growth of 204.4% [6]. - Adjusted net profit reached 4.710 billion yuan, with a year-on-year increase of 362.8%, and an adjusted net profit margin of 33.94%, up by 11.6 percentage points [6]. - The company’s IP matrix continues to grow, with significant contributions from top IPs and a rapid increase in new IP cultivation [6]. Financial Performance - Revenue breakdown shows that the top IPs generated significant income, with "The monsters" contributing 4.81 billion yuan, "Molly" 1.36 billion yuan, and "Skullpanda" 1.22 billion yuan, among others [6]. - The plush category saw a staggering growth of 1276.2% to 6.139 billion yuan, becoming the highest revenue-generating category [6]. - The company’s gross margin improved to 70.3%, a year-on-year increase of 6.3 percentage points, driven by better cost control and a higher proportion of overseas high-margin business [6]. Revenue and Profit Forecast - The company forecasts total revenue of 30.05 billion yuan for 2025, with a year-on-year growth of 130% [7]. - Adjusted net profit is projected to reach 10.368 billion yuan in 2025, reflecting a growth of 205% [7]. - The adjusted PE ratios for 2025, 2026, and 2027 are estimated at 37.4x, 27.3x, and 22.4x respectively [7]. Market Expansion - The company reported a revenue of 8.28 billion yuan from the China region, a year-on-year increase of 135.2%, with significant growth in offline channels [6]. - Overseas revenue reached 5.59 billion yuan, marking a remarkable growth of 439.6%, with the Americas showing a particularly high growth rate of 1142.3% [6]. - The company plans to expand its overseas store count to 200 by the end of the year, with a focus on emerging markets such as the Middle East and South Asia [6].

Core Viewpoint - The recent launch of the "Starry People Dream Meteorological Bureau Series" blind box by Pop Mart has generated significant consumer interest and sales, indicating a strong market demand for new IPs in the collectible toy sector [1][2]. Product Launch and Sales - Pop Mart has introduced multiple new products, including the "Starry People" blind box, which is part of its newly signed IP for 2024 and has already achieved a revenue of 390 million yuan in the first half of the year [2]. - The pricing for the blind boxes is set at 79 yuan each and 474 yuan for a full box, while the "MOKOKO" plush toys are priced at 199 yuan each. The products sold out almost instantly upon release, with inventory disappearing within seconds on various platforms [3]. Market Demand and Resale Prices - The shortage of available stock has led to a surge in resale prices on secondary markets, with the full box of "Starry People" selling for as much as 1,350 yuan, representing a nearly threefold increase in price. Individual pieces are averaging 150 yuan, nearly double the original price, while hidden variants have reached 478 yuan, over six times the original price [8][12]. - The excitement surrounding the "Starry People" series has drawn comparisons to the previous popular series, LABUBU 3.0, which has seen its prices drop to 780 yuan, indicating a shift in consumer interest and potential for "Starry People" to become the next big hit [15][16]. Production Capacity and Challenges - Pop Mart's supply chain president revealed that the production capacity for plush toys has increased significantly, with August's output reaching approximately 30 million units, a tenfold increase compared to previous levels. However, there are concerns about meeting the high demand, as the company is still in the process of ramping up production [18].

Core Insights - The company reported better-than-expected profits for H1 2025, with optimistic full-year guidance and a "buy" rating maintained due to successful overseas expansion and the rise of new IPs [1][2] Financial Performance - In H1 2025, the company achieved revenue of 13.88 billion yuan, a year-on-year increase of 204.4% - Net profit reached 4.68 billion yuan, up 385.6%, exceeding the previous profit forecast of 350% - Adjusted net profit was 4.71 billion yuan, reflecting a year-on-year growth of 362.8% - Gross margin stood at 70.3%, an increase of 6.3 percentage points year-on-year - Adjusted net profit margin was 33.9%, up 11.6 percentage points year-on-year [1] Market Expansion - The global market saw explosive growth, with the Americas experiencing over 11-fold growth year-on-year - Revenue from different regions in H1 2025 was as follows: China 8.28 billion yuan (up 135%), Asia-Pacific 2.85 billion yuan (up 258%), Americas 2.26 billion yuan (up 1142%), and Europe & others 480 million yuan (up 729%) - The Americas accounted for 16.3% of total revenue, with offline and online revenues of 840 million yuan and 1.33 billion yuan respectively, indicating strong popularity of the company's IP on social media [2] IP Development - The company has established a strong IP matrix with five major IPs generating over 1 billion yuan in revenue - The top-performing IPs include THE MONSTERS (4.81 billion yuan, up 668%), MOLLY (1.36 billion yuan, up 74%), SKULLPANDA (1.22 billion yuan, up 113%), CRYBABY (1.22 billion yuan, up 249%), and DIMOO (1.11 billion yuan, up 193%) - Among 13 IPs generating over 100 million yuan, the fastest-growing IP is 星星人, contributing 390 million yuan [2]

Core Viewpoint - The company achieved a revenue of 13.88 billion yuan in the first half of the year, representing a year-on-year growth of 204%, with adjusted net profit reaching 4.71 billion yuan, a year-on-year increase of 363%, both exceeding expectations [1] Group 1: Revenue and Profit Growth - The company reported significant revenue and profit growth, with both figures surpassing previous forecasts [1] - The domestic and American markets showed impressive profit margins, with ongoing improvements in supply chain capabilities and performance of other IPs aside from LABUBU [1] Group 2: International Expansion - The Americas led the growth, with revenue increases of 1142% in the first half, and the company plans to open more flagship stores in the second half [1] - As of June, the number of overseas self-operated stores reached 162, an increase of 32 stores since the beginning of the year, with a target of 200 stores by year-end [1] Group 3: Domestic Market Performance - In the domestic market, single-store revenue more than doubled, with annualized figures of 18 million yuan and 47.4 million yuan for mainland China and Hong Kong/Macau/Taiwan, respectively [2] - The operating profit margin for the China division increased by 13 percentage points to 49%, outperforming overseas margins [2] Group 4: IP Development - The company plans to launch a mini version of Labubu and collaborate with celebrity IPs like Zhou Shen and Sun Yanzi [2] - Although Labubu's revenue share increased to 35%, the revenue contribution from the second to fifth largest IPs remained around 10% each, indicating a balanced and healthy IP structure [2] Group 5: Margin and Efficiency - The company achieved a record high gross margin of 70%, with adjusted net margin reaching 34%, both showing significant year-on-year and quarter-on-quarter increases [3] - Inventory turnover days decreased to 83 days from 100 days last year, reflecting improved operational efficiency alongside a 200% revenue increase [3] Group 6: Future Outlook - The company expects continued high growth while focusing on operational quality and long-term sustainable growth [3] - Key points for the second half include ramping up production capacity, enhancing production efficiency, and launching new products like mini Labubu [3]

Group 1 - The Hang Seng Index Company announced the inclusion of China Telecom, JD Logistics, and Pop Mart into the Hang Seng Index, increasing the number of constituent stocks from 85 to 88, effective September 8 [1] - This marks the first time Pop Mart has been included in the Hang Seng Index, reflecting strong market recognition of its overall strength [1] - Following its inclusion, Pop Mart launched a new series of plush toys under its IP "THE MONSTERS," reigniting market consumer enthusiasm [1] Group 2 - As of August 22, Pop Mart's stock price was HKD 320.4, with a total market capitalization exceeding HKD 430 billion, and a year-to-date stock price increase of over 258% [2] - For the first half of 2025, Pop Mart reported revenue of CNY 13.88 billion, a year-on-year increase of 204.4%, and an adjusted net profit of CNY 4.71 billion, up 362.8% [2] - The company expects full-year revenue to be no less than CNY 30 billion, indicating strong growth potential [2]

Group 1 - The core product launch includes the "Starry People Dream Meteorological Bureau Series" plush blind box priced at 79 yuan each and 474 yuan for a full box, along with the "Light Up Series" scene figurine blind box at the same individual price and 711 yuan for a full box [2] - The MOKOKO rubber plush blind box is priced at 199 yuan each, indicating a diverse product offering [2] - The "Starry People" IP has generated significant market interest, leading to rapid price increases in the secondary market, with full boxes selling for up to 1350 yuan, representing a 300% premium [3][5] Group 2 - The overwhelming demand for the "Starry People" series has resulted in stock shortages, with reports of orders exceeding expectations, similar to the previous success of the LABUBU3.0 series [7] - The company reported impressive financial results for the first half of the year, with revenue of 45.58 billion yuan, a 62% year-on-year increase, and a profit of 10.18 billion yuan, up 90.1% [8] - The CEO forecasts annual revenue to exceed 10 billion yuan, with a growth rate of at least 60%, and international revenue growth expected to be around 200% [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][14]. Core Insights - The company has demonstrated significant revenue growth, with a reported revenue of 138.8 billion yuan for H1 2025, representing a year-over-year increase of 204.4%. The adjusted net profit reached 47.1 billion yuan, up 362.8% year-over-year, indicating strong operational performance and cost control [6][7][9]. Financial Performance - Revenue for H1 2025 was 138.8 billion yuan, with an expected full-year revenue exceeding 300 billion yuan. The adjusted net profit was 47.1 billion yuan, with an adjusted net profit margin of 33.9%, an increase of 11.6 and 5.8 percentage points compared to H1 2024 and H2 2024 respectively. The gross margin was 70.3%, up 6.3 percentage points year-over-year [6][9][12]. - The company effectively controlled costs, with a decrease in sales expense ratio by 6.7 percentage points and management expense ratio by 4 percentage points year-over-year. The inventory turnover days improved from 102 days in 2024 to 83 days in H1 2025 [9][10]. Revenue Breakdown - Online sales growth outpaced offline, with online revenue increasing by 365% year-over-year, accounting for 39.6% of total revenue. Offline revenue grew by 159% year-over-year, making up 55.7% of total revenue [8][9]. - Domestic revenue reached 82.8 billion yuan, representing 59.7% of total revenue, with online domestic revenue growing by 212.2% year-over-year [9][10]. International Expansion - Overseas revenue surged by 440% year-over-year, accounting for 40.3% of total revenue. The Americas and Europe showed particularly strong growth, with year-over-year increases of 1142.3% and 729.2% respectively [11][12]. - The company plans to expand its store count to 200 by the end of the year, with significant growth in the Americas and Europe [11][12]. Product and IP Performance - The plush category has become the largest product category, with revenue from plush toys growing by 1276% year-over-year. The company has 13 IPs generating over 1 billion yuan in revenue [12][13]. - Membership growth has been robust, with a total of 59.12 million members by H1 2025, and a member repurchase rate of 50.8% [12][13]. Earnings Forecast - The company is projected to achieve revenues of 330.25 billion yuan, 452.39 billion yuan, and 566.76 billion yuan for the years 2025, 2026, and 2027 respectively. The adjusted net profit is expected to reach 115.48 billion yuan, 159.05 billion yuan, and 200.87 billion yuan for the same years [15][16].