Core Viewpoint - The article discusses the significant divergence in stock performance between two companies in the IP economy and emotional consumption sectors, namely Pop Mart and Miniso, highlighting the challenges faced by Miniso despite its strong revenue growth [1][2][5][30]. Group 1: Company Performance - Pop Mart's stock price has risen above 200 HKD, with a market capitalization exceeding 300 billion HKD and a year-to-date increase of over 150%, establishing it as the leading player in the trendy toy sector [3]. - In contrast, Miniso's stock has dropped over 25% this year, with its market cap falling below 50 billion HKD, and a recent earnings report led to a single-day stock drop of 18.22%, resulting in a nearly 10 billion HKD loss in market value [5][8]. Group 2: Financial Results - Miniso reported its best-ever performance in 2024, achieving a revenue of 16.994 billion RMB and a net profit of 2.618 billion RMB, which are impressive figures compared to its peers [9]. - For Q1 2025, Miniso's revenue reached 4.43 billion RMB, a 19% year-on-year increase, surpassing initial expectations [11]. - However, the adjusted net profit for Q1 2025 was 587.2 million RMB, falling short of the forecasted 661.3 million RMB, indicating a profit margin decline of 2.5 percentage points year-on-year [15]. Group 3: Market Dynamics - The domestic IP retail market is becoming increasingly competitive, with brands like KKV and Green Party expanding aggressively, which is squeezing Miniso's market share [20]. - In Q1 2025, Miniso's domestic revenue grew by only 9% to 2.49 billion RMB, significantly lagging behind the 30% growth in its overseas business [21]. - The increase in direct store operations has led to higher rental and labor costs, further pressuring Miniso's profitability [21]. Group 4: IP Strategy and Challenges - Miniso's strategy of collaborating with various IPs has not significantly enhanced its product value or brand appeal, as evidenced by the limited contribution of its IP products to overall profits [25][28]. - The company has been heavily reliant on external IP sourcing, which poses risks such as high costs and potential inventory issues, as seen with the underperformance of the Harry Potter IP products [44][45]. - The lack of successful original IPs remains a critical shortcoming for Miniso, which contrasts with Pop Mart's success in creating popular original characters [32][50]. Group 5: Future Outlook - The article suggests that while Miniso's stock has dropped, its valuation has returned to a relatively low level of 16 times PE, indicating potential long-term investment value given its ongoing expansion and brand strength [62]. - For Miniso to regain market trust, it must move beyond a cost-effective strategy and develop more of its own successful IPs to enhance store efficiency and maintain profitability [63].