POP MART(HK:09992)2024-03-21 16:00Investment Rating - The report maintains an "OUTPERFORM" rating for Pop Mart International (9992 HK) [3][4][8]. Core Insights - In 2023, Pop Mart's revenue reached RMB 6.3 billion, representing a year-on-year increase of 36.5%. Domestic revenue was RMB 5.23 billion, up 26% YoY, while overseas revenue surged to RMB 1.07 billion, marking a 135% YoY growth [4][8]. - The company added a net total of 34 retail stores and 123 roboshops in 2023, with plans for further expansion in the coming years [4][8]. - The gross profit margin (GPM) improved to 61.3%, an increase of 3.8 percentage points YoY. The selling and distribution expense ratio was 31.8%, down 0.1 percentage points YoY, and the general and administrative expense ratio was 11.2%, down 3.8 percentage points YoY [4][8]. - Adjusted net profit for 2023 was RMB 1.19 billion, up 108% YoY, with an adjusted net profit margin of 18.9%, reflecting a 6.5 percentage point increase YoY [4][8]. - The company projects revenues of RMB 8.22 billion, RMB 10.31 billion, and RMB 12.45 billion for 2024, 2025, and 2026, respectively, with adjusted net profits of RMB 1.58 billion, RMB 2.05 billion, and RMB 2.53 billion for the same years [4][8]. Summary by Sections Financial Performance - Revenue for 2023 was RMB 6.3 billion, a 36.5% increase YoY. The gross profit was RMB 3.86 billion, with a gross profit margin of 61.3% [5][8]. - Adjusted net profit was RMB 1.19 billion, reflecting a 108% increase YoY, with an adjusted net profit margin of 18.9% [5][8]. Future Projections - Revenue projections for 2024, 2025, and 2026 are RMB 8.22 billion, RMB 10.31 billion, and RMB 12.45 billion, respectively. Adjusted net profits are expected to be RMB 1.58 billion, RMB 2.05 billion, and RMB 2.53 billion for the same years [5][8]. Valuation - The company is valued at a target price of HKD 32.8, based on a 25x FY24 price-to-earnings ratio [4][8].