Core Viewpoint - The launch of the mini version of Labubu by Pop Mart has generated significant hype, with resale prices on secondary markets reaching up to 2,500 yuan, indicating strong demand and potential for high profitability [1][4]. Group 1: Product Launch and Market Response - The mini version of Labubu will officially go on sale on August 28, with resale prices on secondary platforms already doubling the official price [1]. - The mini Labubu set includes 14 regular items and 1 hidden item, priced at 79 yuan each, with a complete set costing 1,106 yuan [1]. - Other new products from Pop Mart, such as the Mokoko summer series and the Star Dream Meteorological Bureau plush blind boxes, have also seen significant price increases on secondary markets before their official release [4]. Group 2: Financial Performance - Pop Mart's revenue for the first half of the year reached 13.876 billion yuan, a year-on-year increase of 204.4%, with net profit attributable to shareholders at 4.574 billion yuan, up 396.5% [5]. - The revenue from plush products, which is the largest income source for Pop Mart, amounted to 6.14 billion yuan, accounting for 44.2% of total revenue, with a year-on-year growth of 1,276.2% [5]. - The overall revenue from THE MONSTERS series, which includes Labubu, reached 4.81 billion yuan in the first half of the year, marking a 668% increase and representing 34.7% of Pop Mart's total revenue [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Insights - The company reported a revenue increase of 8% and a net profit increase of 10% in the first half of 2025, with revenue reaching 1.835 billion yuan and net profit at 46.74 million yuan [1] - The company is focusing on expanding its direct stores in East China, Central China, and South China, while optimizing its product category structure [2] - The collaboration with Bandai Namco is expected to enhance profit margins, with the company projected to achieve revenues of 3.8 billion yuan in 2025, 4.2 billion yuan in 2026, and 4.7 billion yuan in 2027, reflecting growth rates of 9%, 11%, and 12% respectively [3] Financial Summary - The company is expected to generate revenues of 3.466 billion yuan in 2024, with a growth rate of 4.06%, and net profit of 106.41 million yuan, reflecting a growth rate of 1.61% [4] - The projected earnings per share (EPS) for 2025 is 0.97 yuan, with a price-to-earnings (P/E) ratio of 20.30 [4] - The company’s total market capitalization is approximately 2.69876 billion yuan [6]

Core Viewpoint - The recent launch of the "Starry People Dream Meteorological Bureau Series" blind box by Pop Mart has generated significant consumer interest and sales, indicating a strong market demand for new IPs in the collectible toy sector [1][2]. Product Launch and Sales - Pop Mart has introduced multiple new products, including the "Starry People" blind box, which is part of its newly signed IP for 2024 and has already achieved a revenue of 390 million yuan in the first half of the year [2]. - The pricing for the blind boxes is set at 79 yuan each and 474 yuan for a full box, while the "MOKOKO" plush toys are priced at 199 yuan each. The products sold out almost instantly upon release, with inventory disappearing within seconds on various platforms [3]. Market Demand and Resale Prices - The shortage of available stock has led to a surge in resale prices on secondary markets, with the full box of "Starry People" selling for as much as 1,350 yuan, representing a nearly threefold increase in price. Individual pieces are averaging 150 yuan, nearly double the original price, while hidden variants have reached 478 yuan, over six times the original price [8][12]. - The excitement surrounding the "Starry People" series has drawn comparisons to the previous popular series, LABUBU 3.0, which has seen its prices drop to 780 yuan, indicating a shift in consumer interest and potential for "Starry People" to become the next big hit [15][16]. Production Capacity and Challenges - Pop Mart's supply chain president revealed that the production capacity for plush toys has increased significantly, with August's output reaching approximately 30 million units, a tenfold increase compared to previous levels. However, there are concerns about meeting the high demand, as the company is still in the process of ramping up production [18].

Group 1 - The 2025 Taiwan Tourism Expo showcased popular mainland潮玩 IPs, attracting significant attention from the Taiwanese public [1] - The event featured a collaboration between the Cross-Strait Tourism Exchange Association Taipei Office and Pop Mart, themed "Travel with潮玩," with eight exhibition booths highlighting various潮玩 products [1] - Pop Mart's Vice President Chen Xiaoyun emphasized the strong consumer enthusiasm among young people for潮玩 IPs and the importance of creating emotional connections with these products [1] Group 2 - Founded in 2010, Pop Mart is a leading global潮流文化 entertainment group, with over 10 physical stores in Taiwan since opening its first store in 2022 [2] - The Taipei flagship store spans over 700 square meters, becoming a popular gathering place for local youth [2] - The Cross-Strait Tourism Exchange Association Taipei Office noted the deep integration of mainland cultural tourism, highlighting the emotional value of潮玩 IPs and the immersive experiences offered by theme parks [2]

Group 1 - The core announcement from Pop Mart is the launch of the mini version of Labubu, consisting of two models (A/B), each with 14 regular versions and 1 hidden version, with probabilities of 1:14 for regular and 1:168 for hidden [2] - The price for a single blind box is set at 79 yuan, while the complete set is priced at 1106 yuan, with online sales starting on August 28 and offline on August 29 [2] - Following the announcement, Pop Mart's market capitalization reached 430 billion HKD, and the latest financial report indicates a gross margin of 70.3% for the first half of 2025, surpassing LVMH and nearing Hermès [2] Group 2 - The revenue from the THE MONSTERS series, which includes Labubu, surged by 668%, establishing it as a significant revenue generator for the company [2] - The success of Labubu is attributed to a seven-year buildup before gaining widespread popularity [2] - In contrast, celebrity-driven IPs have shown quicker success, with examples like Zhou Shen's "Zhou Keke" selling over 10 million in five minutes, and Jay Chou's "Zhou Classmate" generating over 1 billion from IP licensing alone [4] Group 3 - The potential risks associated with celebrity IPs include their dependency on the celebrity's reputation, which can lead to a total loss of value if the celebrity faces controversies [4] - Despite the risks, the profitability of celebrity IPs has attracted significant interest, prompting companies to consider replicating the success of Labubu [4][6]

Market Performance - The Hong Kong stock market indices continued to show volatility from August 18 to August 22, with the Hang Seng Index rising by 0.27% to close at 25,339.14 points, the Hang Seng Tech Index increasing by 1.89% to 5,647.68 points, and the China Enterprises Index gaining 0.45% to 9,079.93 points [1] Index Adjustments - The Hang Seng Index Company announced its quarterly review results, adding China Telecom, JD Logistics, and Pop Mart to the index, increasing the number of constituent stocks to 88. The Hang Seng Tech Index remained unchanged with 30 constituent stocks [1] Company Highlights - Pop Mart, a newly added constituent of the Hang Seng Index, reported a revenue of 13.88 billion yuan for the first half of 2025, representing a year-on-year growth of 204.4%. The adjusted net profit was 4.71 billion yuan, showing a significant increase of 362.8% year-on-year [1] - Huatai Securities expressed optimism about Pop Mart's growth potential as a one-stop platform for trendy toys, highlighting its expansion into new categories and innovative businesses such as theme parks, accessories, and desserts, as well as its content layout in film and animation, which is expected to enhance the global influence of its IP [1] Sector Performance - Technology stocks showed positive performance, with notable gains from SenseTime (up 5.75%), Kuaishou (up 4.39%), Xiaomi Group (up 2.34%), Alibaba (up 1.99%), Tencent Holdings (up 1.18%), Meituan (up 1.11%), and JD Group (up 0.25%) [2] - Semiconductor stocks also experienced significant increases, with Huahong Semiconductor rising by 17.85%, Jingmen Semiconductor by 10.64%, SMIC by 10.06%, Beike Micro by 9.15%, InnoCare by 7.09%, and Shanghai Fudan by 6.36% [2]

Core Insights - The new products from Pop Mart, particularly MOKOKO and other popular IPs, sold out instantly, with secondary market prices skyrocketing, indicating high demand and speculation [1][2][3] Group 1: Product Demand and Pricing - MOKOKO was the most sought-after item during the recent release, with secondary market prices reaching up to 1200 yuan, significantly higher than the original price of 199 yuan [1][2] - Other products, such as the "Good Dream Meteorological Bureau" plush blind box, also saw pre-release hype and price increases, with non-hidden versions attracting attention [2][5] - The official price for a single blind box is 79 yuan, while hidden versions have surged to 599 yuan, and "Big Wind in Chaos" has exceeded 200 yuan in the secondary market [5] Group 2: Production Capacity and Financial Performance - Pop Mart reported a tenfold increase in plush product production capacity compared to the same period last year, reaching approximately 30 million units per month [8][9] - For the first half of 2025, the plush category generated 6.14 billion yuan in revenue, a staggering year-on-year growth of 1276.2%, surpassing the revenue from figurines, which was 5.18 billion yuan with a growth of 94.8% [9] - The financial report highlighted that five major IPs generated over 1 billion yuan in revenue, with THE MONSTERS being the top contributor at 4.8 billion yuan [9]

Core Insights - The founder of Pop Mart, Wang Ning, expressed confidence in achieving a revenue target of 300 billion CNY for the year, significantly higher than the initial goal of 200 billion CNY [1] - In the first half of 2025, Pop Mart reported a revenue of 138.8 billion CNY, representing a year-on-year growth of 204.4%, and an adjusted net profit of 47.1 billion CNY, up 362.8% [1] - The gross profit margin for the first half of 2025 reached a historical high of 70.3%, an increase of 6.3 percentage points year-on-year [1] Revenue and Profitability - Pop Mart's net profit attributable to shareholders was 45.74 billion CNY, marking a year-on-year increase of 396.5% [1] - The LABUBU IP generated 48.1 billion CNY in revenue in the first half of 2025, a staggering growth of 668.0% compared to the previous year, accounting for 34.7% of total revenue [2] - Other IPs such as MOLLY, SKULLPANDA, CRYBABY, and DIMOO each surpassed 10 billion CNY in revenue, while 13 other IPs achieved over 1 billion CNY in revenue [2] Production Capacity - The production capacity for plush products has increased significantly, with current monthly output reaching approximately 30 million units, which is over ten times the capacity from the same period last year [1] - The supply chain head noted that the current monthly production volume is equivalent to what was previously produced in a year [1] Cost Management - The CFO highlighted that the increase in overseas sales, which have higher pricing than domestic sales, contributed to a 4 percentage point increase in gross profit margin [2] - The reduction in the proportion of externally sourced products and optimization of procurement costs led to a 1.5 percentage point increase in gross profit margin [2] - A decrease in the proportion of licensing and mold fees also contributed to an additional 0.8 percentage point increase in gross profit margin [2]

Core Viewpoint - Pop Mart's founder Wang Ning expressed confidence in achieving a revenue target of 300 billion yuan for the year, significantly higher than the initial goal of 200 billion yuan [1] Financial Performance - In the first half of 2025, Pop Mart reported a revenue of 138.8 billion yuan, representing a year-on-year increase of 204.4% [1] - The adjusted net profit for the same period was 47.1 billion yuan, showing a remarkable growth of 362.8% year-on-year [1] - The profit attributable to the company's owners reached 45.74 billion yuan, up 396.5% compared to the previous year [1] - Both revenue and net profit for the first half of 2025 exceeded the total figures for the entire previous year [1] Key Product Development - The LABUBU brand has become a global sensation, contributing 48.1 billion yuan in revenue, which is a staggering increase of 668.0% year-on-year [1] - LABUBU's revenue accounted for 34.7% of total revenue in the first half of 2025, up from 23.3% in the 2024 annual report [1] - A Mini version of LABUBU is set to be launched, expanding its usage scenarios beyond being attached to bags to now include mobile phones [1]

Core Viewpoint - Pop Mart is taking legal action against 7-Eleven in the U.S. for selling counterfeit versions of its LABUBU toys, highlighting the challenges of intellectual property protection in international markets [1][2]. Group 1: Legal Action and Counterfeiting - Pop Mart has confirmed that it is suing 7-Eleven for selling counterfeit LABUBU toys, with multiple U.S. consumers reporting the purchase of fake products [1][2]. - The counterfeit LABUBU toys, labeled as "LAFUFU," are being sold for $25 each in 7-Eleven stores, with complaints about their poor quality [2]. - Since June, customs authorities have been actively seizing counterfeit LABUBU products, with Shanghai customs alone confiscating 6,960 units [2]. Group 2: Expansion and Future Plans - Pop Mart's founder, Wang Ning, has expressed interest in producing a LABUBU movie, with several well-known film companies, including those in Hollywood, showing interest in collaboration [3][4][6]. - The company aims to expand its global presence, with over 46 million registered members and more than 400 stores in mainland China as of the end of last year [6]. - Wang Ning's ambition is to transform Pop Mart into a world-class Chinese consumer brand, akin to Disney [6].