BOCOM International·2025-10-22 10:27Investment Rating - The report maintains a "Buy" rating for the company, Pop Mart (9992 HK) [2][15]. Core Insights - The report highlights a sustained growth momentum, leading to an upward revision of profit forecasts and target price, reaffirming the "Buy" rating [2][6][7]. - The target price has been raised to HKD 401.60, indicating a potential upside of 60.4% from the current price of HKD 250.40 [1][15]. Financial Performance Summary - Revenue projections for 2025 have been increased by 11%, with expectations of continued sales momentum into Q4 due to the retail peak season [6][7]. - The company is expected to achieve significant revenue growth, with 2025 revenue estimated at RMB 35,899 million, reflecting a year-on-year growth of 175.3% [5][16]. - Net profit for 2025 is projected to reach RMB 12,421 million, representing a year-on-year increase of 296.7% [5][16]. Market Growth Dynamics - The company reported a 245-250% year-on-year revenue growth in Q3 2025, with the domestic market growing by 185-190% and overseas markets experiencing a remarkable growth of 365-370% [6][7]. - The domestic market's online sales grew by 300-305%, driven by effective live-streaming e-commerce and refined online membership operations [6][7]. - The overseas market, particularly the Americas, showed exceptional performance, with revenue growth of 1265-1270% in Q3 [6][7]. Profitability and Valuation Metrics - The report anticipates an increase in profit margins, with gross profit margin expected to reach 70.8% in 2025 [8][11]. - The company’s price-to-earnings ratio is projected to be 24.5 times for 2025, indicating an attractive valuation given the expected growth [5][16]. - The report notes that the company’s ability to monetize its IP platform continues to strengthen, with significant contributions expected from new IPs and product innovations [6][7].