Core Insights - The 2025 PTS Beijing International Trendy Toy Expo will be held from August 1 to 3 at the National Convention Center, organized by Pop Mart, featuring renowned international IP giants such as Disney, Universal, and Bandai, alongside emerging domestic IPs, making it a global platform for trendy toy IP exchange [1] Group 1 - The collaboration between Chinese trendy IP LABUBU and international icons like Minions and Stitch has become a highlight of the expo, indicating a successful cross-border integration [3] - LABUBU's popularity overseas has led to rapid growth in the related "doll clothing" industry, with some companies reporting numerous orders from Southeast Asia [3] - The expo not only showcases well-known IPs but also serves as an important platform for new artists and niche designers to present their creative works [4]

Group 1 - A store in Los Angeles experienced a theft of Labubu products valued at approximately $7,000, indicating a targeted and premeditated act by the thieves [1][3] - The store had recently promoted its inventory on social media, suggesting that the thieves may have been monitoring the store's online activity [1][3] - Labubu products have gained significant popularity in the collectible market, with a rare item recently selling for $10,500 on eBay, marking it as the most expensive toy on the platform [3] Group 2 - Labubu, a product of Pop Mart, is marketed through a blind box strategy, with limited edition items priced at $500 and regular items at $27.99, contributing to its desirability [3][5] - The unique design and limited supply strategy of Labubu enhance its potential for value retention and appreciation, as noted by industry experts [5][6] - Rare "hidden" versions of Labubu have a low probability of appearance, leading to secondary market prices reaching thousands of dollars, with a recent pink hidden version selling for $2,000 [6]

Summary of the Conference Call for Pop Mart Company Overview - **Company**: Pop Mart - **Industry**: Toy and Collectibles Key Points and Arguments Financial Performance - Adjusted net profit for the first half of the year is expected to be no less than 450 million RMB, with a profit margin of 33.5%, an increase of 5 percentage points compared to the second half of last year, indicating enhanced profitability and a solid fundamental outlook [2][4] - The company anticipates significant growth in 2026 driven by channel expansion in the US and Europe, new IP launches, and sustained growth of existing IPs [3] Market Expansion - The company is accelerating its overseas expansion, adding 5-6 new stores in the US in July, with active openings in the European market, indicating a strong strategic focus on global market penetration [2][5] - The domestic market has exceeded expectations, with significant increases in foot traffic and per-store revenue, suggesting a "re-recognition" phenomenon among consumers [2][30] IP Development - The Labubu IP has surpassed many well-known IPs globally, achieving an annual revenue of 10 billion RMB, placing it in the third tier of global IPs, although its future development path requires attention [2][32] - Classic products have shown extended sales cycles, indicating stable and lasting demand, which will provide a solid revenue base for the company [2][11] Supply Chain and Inventory Management - The company has adopted a strategy of bulk replenishment to stabilize market prices and meet consumer demand, reflecting strong demand and potentially increasing EPS [2][9] - Frequent replenishment has become a normalized operational rhythm, with a significant impact on domestic revenue growth expected in Q1 2025 due to replenishment activities [9] Challenges and Market Dynamics - The recent market performance has been relatively stable despite fluctuations in stock prices due to shifts in investment focus towards new consumption and AI applications [4] - The company is addressing the decline in scalper prices due to concentrated replenishment of Labubu versions, which has altered supply-demand dynamics [8] Future Growth Strategies - The upcoming mid-year performance meeting is highly anticipated for insights on store opening pace, category expansion, and new IP plans [6] - The company plans to increase its store count in the US from 40-50 to around 200, while also expanding in Europe [34][35] Regional Market Insights - The Southeast Asian market has been a strong performer, with significant revenue contributions and new store openings in Thailand and Indonesia [29] - The European market is viewed as strategically important, with ongoing expansion and a focus on artist collaborations and limited edition products [27][28] Consumer Demographics and Market Penetration - The domestic toy market still has considerable penetration potential, with estimates suggesting that 200 million people could be potential consumers of trendy toys [31] - The company has approximately 46 million registered members in China, indicating significant room for growth in market penetration [31] Long-term IP Management - The Labubu IP has crossed the threshold of 10 billion RMB in global peripheral revenue, indicating its potential for long-term operation and growth [32][33] - The company is confident in the long-term operational capabilities of its IPs, supported by successful category expansions and market adaptations [33] Additional Important Insights - The company is exploring diverse operational formats to enhance brand influence, including opening jewelry stores and establishing theme parks [22] - The search heat for Pop Mart's IPs in various countries indicates strong market interest, with notable performance in Thailand and the Philippines [20][19] This summary encapsulates the key insights from the conference call, highlighting Pop Mart's financial performance, market strategies, IP development, and future growth potential.

Market Overview - The Hong Kong stock market showed mixed performance with the Hang Seng Index rising by 0.03% and the Hang Seng Tech Index increasing by 0.2%, while the Hang Seng China Enterprises Index fell by 0.21% [2] - Southbound capital saw a net inflow of approximately 9.5 billion HKD, down from 23 billion HKD on August 5 [3] Sector Performance - Large tech stocks exhibited mixed results, with Tencent rising by 1.7% and other stocks like Kuaishou and Alibaba also increasing [6][7] - The "anti-involution" sector and gold stocks saw gains, while the pharmaceutical sector declined due to tariff news from Trump [4][24] Paper Industry - The paper industry continued its strong upward trend, with stocks like Chenming Paper and Nine Dragons Paper both rising over 10% [10] - The Guangdong Paper Industry Association issued a proposal to promote high-quality development in the industry, which is expected to benefit from the current supply-demand imbalance [12] Coal Sector - Coal stocks also performed well, with China Qinfa, China Coal Energy, and Yanzhou Coal Mining rising by 9.39%, 3.89%, and 3.34% respectively [12][13] New Consumption - New consumption stocks showed signs of recovery, with Pop Mart rising over 7% and other companies like Lao Pu Gold and Mixue also seeing significant increases [15][17] - Morgan Stanley maintained an "overweight" rating on Pop Mart, citing undervaluation of its platform [18] Gold Sector - Gold stocks experienced a rebound due to rising international gold prices, with Lao Pu Gold and Datang Gold both increasing by over 5% [20][22] Pharmaceutical Sector - The pharmaceutical sector faced declines, with Junshi Biosciences dropping over 10% following Trump's announcement of potential tariffs on imported drugs [24][26] - Other pharmaceutical stocks like Hualan Biological and Basilea Pharmaceutica also saw declines [25][26] Airline Sector - Airline stocks experienced significant drops, with Cathay Pacific falling over 9% and other airlines like China Eastern Airlines and China Southern Airlines also declining [27][28]

Core Viewpoint - Morgan Stanley's report highlights the potential growth and undervalued platform value of Pop Mart, particularly following their participation in the recent international toy exhibition in Beijing [1] Group 1: Product Performance - The Twinkle Twinkle product booth attracted significant crowds, with items such as figurines, artwork, bags, and accessories selling out quickly, indicating that Twinkle Twinkle could start contributing significantly to sales from 2024 onwards [1] - The Crybaby product line, including T-shirts, baseball caps, cushions, and slippers, was also well-received, with an average selling price exceeding 250 yuan [1] Group 2: Market Potential - Morgan Stanley believes that Pop Mart's platform value may be underestimated, noting that the company currently sells products in four regions, with its primary IP sources being Greater China, along with Crybaby from Thailand and Peach Riot from the United States [1] - There is significant potential for Pop Mart to tap into rich artistic resources in the United States, Europe, Japan, and Southeast Asia, suggesting that the company's IP and product portfolio will become more culturally diverse over the next 3-5 years [1] Group 3: Valuation and Rating - The intrinsic value of Pop Mart is considered to far exceed its current IP holdings, a point that the market has overlooked, leading Morgan Stanley to maintain an "overweight" rating with a target price of 365 HKD, which corresponds to a projected price-to-earnings ratio of 46 times for this year [1]

Core Viewpoint - Pop Mart (09992) has seen a stock increase of over 5%, currently at 270.6 HKD, with a trading volume of 1.884 billion HKD, driven by positive analyst sentiment following the 2025 PTS Beijing International Toy Expo [1] Group 1: Analyst Insights - Morgan Stanley analysts maintain an "overweight" rating on Pop Mart, emphasizing that the market undervalues its platform capabilities [1] - Analysts believe investors are overly focused on the ceiling of individual IPs, neglecting the company's core long-term investment value in platform incubation [1] - The success of Pop Mart is attributed to its platform capabilities rather than any single IP, with Labubu's contribution to sales increasing from 6% two years ago to significant global recognition today [1] Group 2: Revenue and Growth Projections - DBS recently issued a report forecasting that Pop Mart's revenue and profit will grow by over 140% and 180% respectively this year, driven by strong demand for proprietary IPs like Labubu and Molly [1] - The bank has initiated a "buy" rating with a target price of 312 HKD, projecting a compound annual growth rate of 81% for revenue and 99% for profit from 2024 to 2026 [1]

Core Viewpoint - The 2025 PTS Beijing International Trendy Toy Exhibition, hosted by Pop Mart, emphasizes the theme "Return to Playfulness, Seek the Wilderness of the Heart," showcasing popular global trendy IPs and featuring numerous prominent artists and designers [1][2]. Group 1: Event Highlights - The event took place from August 1 to 3 at the National Convention Center, gathering a wide array of trendy IPs and artists [1]. - Pop Mart signed a strategic cooperation framework agreement with the Beijing Cultural and Tourism Bureau to leverage Pop Mart's innovative advantages in trendy cultural IP operations and the Bureau's rich intangible cultural heritage resources [1]. - The upgraded "Pop Mart Street" introduced interactive experience installations, enhancing fans' understanding of IPs while shopping [1]. Group 2: Industry Impact - Since its inception in 2017, PTS has evolved into a globally recognized trendy toy exhibition and a significant platform for creators to showcase their creativity [2]. - The PTS has successfully held over ten international trendy toy exhibitions, attracting more than 300,000 visitors and featuring over 500 top artists from various countries [2]. - The upcoming Singapore International Trendy Toy Exhibition is scheduled for August 22-24, further expanding the reach of the PTS brand [2].

Core Insights - The 2025 PTS Beijing International Trend Toy Exhibition, hosted by Pop Mart, took place from August 1 to 3, featuring the theme "Return of Playfulness, Seeking the Wilderness of the Heart" [1] - The exhibition attracted major international IP giants such as Disney, Universal, and Bandai, alongside Pop Mart's well-known IPs like THE MONSTERS, MOLLY, DIMOO, SKULLPANDA, CRYBABY, and Zsiga [1] - The event saw overwhelming attendance, with queues extending hundreds of meters during peak times, indicating strong consumer interest and engagement [1] Attendance and Consumer Experience - The exhibition was characterized by high foot traffic, with popular IP-themed booths drawing large crowds and long lines for photo opportunities [1] - Interactive experience areas maintained high popularity, with wait times for certain attractions exceeding one hour [1] - Some consumers expressed frustration on social media regarding the limited availability of certain products, leading to sellouts within minutes of their release [3] Product Demand and Sales - Multiple limited edition products generated a buying frenzy, with some items selling out shortly after their launch, and certain booths completely depleting their stock by 3 PM on the first day [3] - Despite the challenges of long wait times and limited product availability, many attendees reported satisfaction with their purchases, highlighting the appeal of the showcased IPs and exclusive designer signatures [5]

Core Insights - The 2025 PTS Beijing International Trendy Toy Exhibition, hosted by Pop Mart, took place from August 1 to 3, with the theme "Return to Playfulness, Seek the Wild Heart" [1] - Pop Mart signed a strategic cooperation framework agreement with the Beijing Cultural and Tourism Bureau to explore the integration of intangible cultural heritage and trendy toys [1] - The PTS has evolved into a globally recognized trendy toy exhibition since its inception in 2017, with the upcoming Singapore International Trendy Toy Exhibition scheduled for August 22-24 [1] Company Highlights - Pop Mart's "Bubble Street" received an upgrade this year, featuring interactive experience installations for popular IPs [1] - The event showcased various activities, including artist dialogues, live performances by trendy musicians, and creative competitions [1] - Numerous international IP giants, such as Disney and Universal, participated in this year's exhibition, highlighting the growing influence of Pop Mart in the industry [1] Artist Engagement - Several well-known IPs under Pop Mart, including THE MONSTERS, MOLLY, and DIMOO, were present for signings at the event [2] - Emerging artists like SUPERTUTU and KeyA also showcased their creations, indicating a diverse representation of talent [2] Industry Impact - Since its establishment, PTS has attracted over 300,000 visitors and featured more than 500 top artists from various countries, solidifying its status as a premier international trendy toy event [5]

Core Insights - The 2025 PTS Beijing International Trend Toy Exhibition, hosted by Pop Mart, is themed "Return to Playfulness, Seek the Wilderness of the Heart," showcasing global popular IPs and featuring numerous artists and designers [1] - A strategic cooperation framework agreement was signed between Pop Mart and the Beijing Cultural and Tourism Bureau to explore the modern integration of intangible cultural heritage and trendy toys, aiming to enhance cultural innovation and economic benefits in Beijing [1] - Since its inception in 2017, PTS has evolved into a globally recognized platform for creators to showcase their creativity and the unique charm of trendy toy IPs [1] Exhibition Experience - The exhibition has upgraded its interactive experiences, moving beyond a simple buying and selling logic to provide a more immersive experience for attendees [2] - The "Bubble Street" concept has been enhanced with interactive installations, allowing fans to deepen their understanding of IPs while shopping [2] - Various engaging activities, such as DIY workshops and creative competitions, have been introduced to enrich the visitor experience [2][3] Global IP Collaboration - This year's exhibition features numerous international IP giants like Disney and Universal, alongside emerging artists and designers, promoting a diverse range of IPs [3] - The event aims to facilitate global IP interactions and exchanges, allowing fans to immerse themselves in the unique worlds of various IPs [3] Artist Engagement - Pop Mart's well-known IPs and emerging artists participated in signing events, enhancing fan engagement and awareness of new IPs [4] - New artists shared their creative inspirations and processes, stimulating audience curiosity about the artistic core of trendy toys [5] Industry Impact - PTS has established itself as a top-tier global IP event, promoting deep exchanges and innovations within the trendy toy culture [6] - Since its rebranding in 2021, PTS has attracted over 300,000 visitors and featured over 500 top artists from various countries [6] - Pop Mart aims to continuously discover and nurture talented artists, creating products that resonate emotionally with consumers [6] Future Outlook - With the ongoing internationalization strategy, PTS is expected to attract more global artists and designers, further deepening the emotional connection between fans and IP artists [7]