POP MART(HK:09992) Jing Ji Guan Cha Wang·2025-06-15 05:07Core Viewpoint - The rise of Pop Mart, a company known for its blind box toys, has sparked significant interest and confusion among investors, leading to a dramatic shift in market perception and investment strategies over the past few years [2][3][4]. Group 1: Company Overview - Pop Mart, founded 10 years ago, gained fame through its blind box toys and the popularity of its Labubu character in markets like Thailand and North America [2]. - The company's stock price surged to 246 HKD, with a market capitalization exceeding 330 billion HKD, making it more valuable than some traditional giants like Moutai [2][18]. - Pop Mart's initial public offering (IPO) on December 11, 2020, saw its stock price rise to 77.1 HKD, reaching a market cap of over 100 billion HKD, but it faced a significant decline in 2021 and 2022, dropping below 10 HKD at one point [4][18]. Group 2: Market Dynamics - The stock experienced a long period of stagnation from late 2022 to early 2024, with a gradual recovery to 25.8 HKD by September 2023, although still below its peak [6]. - Despite the stock's low performance, Pop Mart continued to innovate and expand its product offerings, with significant revenue growth from its IPs, SKULLPANDA and MOLLY, each surpassing 1 billion RMB in revenue in 2023 [6][18]. - The company's overseas revenue grew by 135% year-on-year to 10.66 billion RMB, accounting for 16.9% of total revenue [6]. Group 3: Investment Sentiment - A notable shift in investment sentiment occurred as fund managers who previously exited during the stock's downturn began to reassess its value, leading to increased holdings in Pop Mart [21][22]. - By the first quarter of 2025, 207 funds held Pop Mart shares, with a total market value of 9.93 billion RMB, a significant increase from previous years [21]. - The stock's dynamic price-to-earnings (PE) ratio exceeded 80, raising concerns among some fund managers about potential overvaluation and market corrections [22]. Group 4: Consumer Trends - The emergence of the Z generation as a dominant consumer group has shifted market dynamics, with a focus on emotional value and personalized experiences driving demand for products like Pop Mart's blind boxes [19][20]. - Pop Mart's unique IP design and blind box mechanism cater to the desires of younger consumers, creating a new form of "social currency" [20]. - The changing consumer landscape has prompted some fund managers to adapt their investment strategies, recognizing the potential of new consumption trends [26][27].