POP MART(HK:09992) Capital Securities·2024-04-14 16:00Investment Rating - The investment rating for the company is "Buy" [2][24]. Core Views - The company reported a total revenue of 6.301 billion yuan in 2023, representing a year-on-year growth of 36.5%. The net profit reached 1.088 billion yuan, a significant increase of 128.8% year-on-year, while the adjusted net profit was 1.191 billion yuan, up 107.6% year-on-year [5][9]. - The company's offline retail and robot store revenues grew by 46.6% and 44.8% respectively, driven by strong store efficiency and a booming offline market. The average revenue per store reached its highest since 2017, particularly in first-tier cities [6]. - The Douyin channel saw remarkable growth, with revenue increasing by 431.2% year-on-year to 283 million yuan in 2023. The company plans to continue expanding its presence in overseas markets, with a revenue increase of 134.9% year-on-year from Hong Kong, Macau, Taiwan, and other international locations [6][9]. - The company's IP operation system is maturing, with key IPs like SKULLPANDA, MOLLY, and DIMOO generating revenues of 1.025 billion yuan, 1.020 billion yuan, and 738 million yuan respectively, showing growth rates of 20.3%, 27.2%, and 27.6% [7][8]. - The product line is expanding, with non-blind box products like the MEGA collectible series generating 682 million yuan in revenue. The company plans to introduce new product categories, including building blocks, to further enhance its offerings [8]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 63.01 billion yuan and net profit of 10.88 billion yuan, with significant growth rates of 36.5% and 128.8% respectively [5][9]. - The forecast for 2024-2026 indicates revenues of 82.8 billion yuan, 99.8 billion yuan, and 112.1 billion yuan, with corresponding net profits of 13.9 billion yuan, 17.2 billion yuan, and 19.8 billion yuan [9][10]. Market Expansion - The company plans to enter new markets in Indonesia, Vietnam, and the Philippines, and expand flagship stores in the UK, France, the US, Japan, and South Korea, aiming for a total of 130-140 overseas stores by the end of 2024 [6][9]. IP Development - The company has successfully launched multiple IPs, with a focus on enhancing the success rate of IP incubation through its PDC department. The number of artist IPs generating over 100 million yuan in sales reached 10 in 2023 [7][8]. Product Line Development - The company is increasing its investment in plush and building block products, addressing supply chain challenges to meet demand for popular items. The opening of the "Bubble Mart City Park" in Beijing aims to deepen emotional connections with fans [8].