POP MART INTERNATIONAL(9992.HK)CONCERNS ARE LIKELY OVERDONE：OUR TAKE ON 2026 OUTLOOK

Investors have most concerns on Labubu and overseas expansion. Our recent discussion with investors reflected that the market mostly worried about: (1) fading popularity of Labubu, especially when compared to the peak in 2Q25, and (2) whether store traffic would see decline as the popularity of Labubu fades and other IPs may fail to monetise as expected. Given the fragmentation of the overseas market as Pop Mart accelerates its global expansion, we note that domestic investors would have higher concerns on ...