Zhi Tong Cai Jing·2025-11-28 03:47Core Viewpoint - Bank of America maintains a "Buy" rating for Pop Mart (09992) with a target price of HKD 400, indicating that the current valuation corresponds to a projected price-to-earnings ratio of 15 times for next year, and forecasts a compound annual growth rate of 34% in net profit from 2025 to 2027 [1] Group 1: Financial Projections - The company is expected to generate revenues of RMB 37.082 billion, RMB 52.135 billion, and RMB 65.988 billion for the years 2025 to 2027 [2] - Adjusted profit forecasts for the same period are estimated at RMB 13.058 billion, RMB 18.515 billion, and RMB 23.482 billion [2] - Earnings per share predictions for 2025, 2026, and 2027 are projected to be RMB 9.8 (up 2.8 times year-on-year), RMB 13.9 (up 41.8% year-on-year), and RMB 17.63 (up 26.8% year-on-year) [2] Group 2: Market Activities and IP Operations - Pop Mart's IP operations in the U.S. market are strengthening, highlighted by Labubu's participation in Macy's Thanksgiving Parade, which has increased visibility and social media engagement [1] - Recent activities include Labubu's appearances at the Empire State Building and NBA games, along with collaborations with KOLs for street events [1] - The company has strategically launched more offline IP activities since Q4 of this year, including a pop-up store for Skullpanda in New York and a collaboration with the TV show "Wednesday" [1] Group 3: Revenue Contribution and Market Sentiment - Labubu is expected to contribute approximately 35% to total revenue in the first half of 2025, with other IPs like Skullpanda, Dimoo, and Molly showing strong popularity prior to Labubu's rise [1] - The influx of funds into the consumer sector may create a positive market beta effect [1] - The company's proactive approach to IP operations is seen as a way to alleviate investor concerns regarding 2026 [1]