POP MART INTERNATIONAL(9992.HK)：GROWTH MOMENTUM SUSTAINED IN 3Q DESPITE HIGHER COMPARISON BASE

Core View - Pop Mart's revenue increased by 245-250% year-over-year (YoY) in 3Q25, surpassing market expectations, with strong growth driven by the popularity of Twinkle Twinkle and effective retail expansion [1][2] Revenue Growth - Total revenue growth accelerated in the domestic market, with a YoY increase of 185-190% in China, while overseas growth moderated to 365-370% YoY due to a higher comparison base [2] - In 3Q25, revenue from offline and online channels in China grew by 130-135% and 300-305% YoY, respectively, attributed to the success of Labubu 4.0 and Twinkle Twinkle [2] - Revenue in the US surged by 1,265-1,270% YoY and in Europe by 735-740% YoY, while growth in the Asia Pacific region slowed to 170-175% YoY [2] Product Performance - Twinkle Twinkle emerged as a breakout sensation in 3Q25, with newly launched collections consistently selling out and commanding a 100% premium in the secondary market [2] - Upcoming product launches, such as the Fresh-Baked Mini Cookies Series Plush Toys, are expected to support continued strong revenue growth in 4Q25 [2] Tariff Risks - Potential US tariff risks are manageable through strategic pricing adjustments and production capacity relocation to Vietnam [3] - The company demonstrated resilience in the face of tariff threats, successfully adjusting prices in the US during 1H25 [3] Valuation - Core net profit forecasts for 2025/26 have been revised up by 20%/23%, while the target price (TP) has been raised to HK$405.6 [5] - The target multiples for 2025E/26E P/E have been adjusted down to 38x/27x, reflecting expectations of gradual revenue growth deceleration [5]