POP MART(HK:09992) CMS·2025-04-21 05:52Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][6]. Core Insights - The company achieved a revenue of 13 billion yuan in 2024, representing a year-on-year growth of 107%, with an adjusted net profit of 3.4 billion yuan and an adjusted net profit margin of 26.1%, an increase of 7.2 percentage points year-on-year [1][5]. - The company has successfully expanded its overseas operations, with expectations that overseas revenue will exceed 10 billion yuan in 2025, accounting for over 50% of total revenue [5][6]. - The company has completed an organizational restructuring to accelerate its global expansion strategy, focusing on regional headquarters in Greater China, the Americas, Asia-Pacific, and Europe [5][6]. Financial Performance - The company reported a gross margin of 66.8% in 2024, an improvement of 5.5 percentage points year-on-year, driven by enhanced cost control and a higher proportion of high-margin overseas business [5][6]. - The adjusted net profit for 2025 is projected to be 5.9 billion yuan, reflecting a growth rate of 73% [6][9]. - The company’s total revenue is expected to reach 20.9 billion yuan in 2025, with a year-on-year growth of 60% [7][9]. Market and Product Insights - The company has 13 IPs that have generated over 100 million yuan in revenue, with significant contributions from various IPs such as labubu and molly, which saw year-on-year growth rates of 727% and 105%, respectively [5][6]. - The domestic market generated 7.97 billion yuan in revenue, a 52% increase year-on-year, while overseas revenue reached 5.07 billion yuan, a staggering 375% increase [5][6]. Valuation Metrics - The company’s PE ratios for 2025 and 2026 are projected to be 34.8x and 25.8x, respectively, reflecting its growth potential and scarcity in the market [6][9]. - The report indicates a strong return on equity (ROE) of 29.3% for 2024, with expectations for continued improvement in subsequent years [2][9].