Summary of Pop Mart International Group Conference Call Company Overview - **Company**: Pop Mart International Group - **Industry**: Art Toy Culture and Retail - **Listing**: Listed on the Hong Kong stock exchange in December 2020 - **Key IPs**: Labubu, Molly, Skullpanda, Crybaby, Dimoo - **Retail Presence**: Operates 401 stores in mainland China and 120 stores outside mainland China as of end-2024 [10][10] Key Points from the Conference Call Product Strategy - **Sales Performance**: Sales this year have significantly exceeded expectations, but management is focused on long-term development [2][2] - **Internal Optimization**: Management is addressing weaknesses from rapid growth by optimizing organizational structure, channel operations, IP management, and supply chain capabilities [2][2] - **New Product Launches**: Q4 is the peak season, with new product series for top IPs planned for gradual weekly releases. However, the launch of Labubu 4.0 has been postponed to next year due to challenges from its popularity [2][2][2] Marketing and Capital Allocation - **Experiential Marketing**: The company is enhancing IP influence through flagship stores and immersive marketing strategies, such as character performances at theme parks and events like Macy's Thanksgiving Day Parade [3][3] - **Interactive Engagement**: Future marketing will explore more interactive forms of IP engagement to enhance consumer experience [3][3] Supply Chain Management - **Supply Chain Optimization**: The supply chain has been optimized to a high level, but management aims to improve delivery speed through enhanced logistics and local warehousing [4][4] - **Demand Forecasting**: Sales data will inform more accurate demand forecasting, and marketing plans will be prepared earlier for key festivals [4][4] Financial Projections and Valuation - **Price Target**: The updated price target is HK$380.0, down from HK$435 due to higher beta assumptions [5][5] - **Revenue Growth**: Projected revenues are expected to grow from Rmb4,617 million in 2022 to Rmb86,042 million by 2029 [6][6] - **Profitability Metrics**: EBIT margin is projected to increase from 14.8% in 2022 to 46.1% by 2029, with net earnings expected to rise from Rmb573 million to Rmb30,693 million over the same period [6][6] Risks and Challenges - **Industry Risks**: Key risks include a slowdown in China's economy, increased competition from internet firms, regulatory scrutiny of the blind box format, and fashion risk in existing IPs [11][11] - **Company-Specific Risks**: Risks include failure to attract consumers with new IPs, challenges in expanding into low-tier cities, and profitability pressures from investments in new initiatives [12][12] Market Metrics - **Current Stock Price**: HK$224.80 as of November 28, 2025 - **Market Capitalization**: HK$302 billion (approximately US$38.8 billion) [7][7] - **Forecast Stock Return**: Expected price appreciation of 69.0% and a dividend yield of 2.1%, leading to a total forecast stock return of 71.1% [9][9] Conclusion Pop Mart International Group is positioned for significant growth in the art toy market, with a strong focus on optimizing internal capabilities and enhancing consumer engagement through innovative marketing strategies. However, the company faces various risks that could impact its long-term success.

Summary of Pop Mart International Group Conference Call Company Overview - **Company**: Pop Mart International Group - **Industry**: Art Toy Culture in China - **Listing**: Listed on the Hong Kong stock exchange in December 2020 - **Key IPs**: Labubu, Molly, Skullpanda, Crybaby, Dimoo - **Retail Presence**: Operated 401 stores in mainland China and 120 stores outside mainland China as of end-2024 [22][24] Financial Performance - **Q3 2025 Revenue Growth**: Revenues increased by 245-250% YoY, exceeding expectations of 180% YoY - **Domestic Sales**: Up 185-190% YoY - **Overseas Sales**: Up 365-370% YoY - **Domestic Offline/Online Sales**: Grew by 130-135% and 300-305% YoY, respectively - **Regional Sales Growth**: APAC (170-175%), America (1265-1270%), Europe (735-740%) [2][3] Market Trends and Product Development - **Popularity of Twinkle Twinkle**: Gaining traction with Halloween series pricing 2-3x original prices - **Expansion of Twinkle Twinkle Ecosystem**: Includes media content, interactive performances, and planned animation shorts [3] - **Labubu's Halloween Collection**: Maintains high premium, indicating strong brand appeal [4] Global Expansion - **European Market Performance**: Strong sales momentum in the UK and France, with Labubu's commercialisation potential still underfulfilled [4] - **Future Catalysts**: Anticipation of Christmas-themed collections and improved high-frequency data to drive stock momentum [2][3] Valuation and Price Target - **Current Price Target**: HK$435, revised from HK$432, reflecting a 13-17% increase in adjusted net income forecast for 2025-2027 [5][6] - **Current Stock Price**: HK$250.40 as of 21 October 2025 [6][38] Financial Metrics - **Market Capitalization**: HK$336 billion (approximately US$43.3 billion) - **52-week Price Range**: HK$335.40 - HK$63.45 - **P/BV (12/25E)**: 16.1x - **EPS Forecasts**: - 2025E: Rmb 9.70 (up 17% from previous forecast) - 2026E: Rmb 12.34 (up 15%) - 2027E: Rmb 15.43 (up 13%) [7][8] Risks and Challenges - **Industry Risks**: - Economic slowdown in China affecting consumer spending - Increased competition from internet firms - Regulatory scrutiny on blind box formats - Fashion risk associated with existing IPs [23][24] - **Company-Specific Risks**: - Difficulty in attracting and retaining consumers with new IPs - Challenges in expanding into lower-tier cities due to affordability issues - Profitability pressures from investments in new initiatives [24] Conclusion - Pop Mart International Group shows strong financial performance and growth potential, particularly in the domestic and overseas markets. The company is well-positioned for future growth with its expanding product ecosystem and upcoming seasonal collections. However, it faces several risks that could impact its performance in the competitive landscape of the art toy industry.