Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [6][12]. Core Insights - The company has achieved global sales exceeding 400 million units, with the "THE MONSTERS" series alone accounting for over 100 million units sold [7]. - The company is expected to experience significant revenue growth in 2025, with projected revenues between RMB 35.6 billion and RMB 43.6 billion, representing a year-on-year increase of 173% to 234% [12]. - New product launches in late 2025 and early 2026 have generated positive market responses, with some products showing a premium of approximately 48% [12]. - The company is strengthening its long-term development foundation by expanding its membership base to over 100 million and increasing its global store count to over 700 [12]. - The company is exploring new business avenues, including jewelry, desserts, theme parks, clothing, and film [12]. - Profit forecasts for 2025 to 2027 are optimistic, with expected net profits of RMB 12.26 billion, RMB 17.8 billion, and RMB 24.6 billion, respectively, indicating substantial growth rates [12]. Financial Summary - The company reported a net profit of RMB 476 million in 2022, with projections of RMB 1.08 billion in 2023 and RMB 3.13 billion in 2024, reflecting a significant recovery and growth trajectory [10]. - Earnings per share (EPS) are expected to rise from RMB 0.35 in 2022 to RMB 9.13 in 2025, showcasing a strong growth potential [10]. - The price-to-earnings (P/E) ratio is projected to decrease from 685 in 2022 to 26 in 2025, indicating an attractive valuation as earnings grow [10].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [6][12]. Core Insights - The company has achieved global sales exceeding 400 million units, with the "THE MONSTERS" series alone accounting for over 100 million units sold [7]. - The company is expected to experience significant revenue growth in 2025, with projected revenues between RMB 35.6 billion and RMB 43.6 billion, representing a year-on-year increase of 173% to 234% [12]. - New product launches in late 2025 and early 2026 have generated positive market responses, with some products showing a premium of approximately 48% [12]. - The company is strengthening its long-term development foundation by expanding its membership base to over 100 million and increasing its global store count to over 700 [12]. - The company is exploring new business avenues, including jewelry, desserts, theme parks, clothing, and film [12]. - Profit forecasts for 2025 to 2027 are optimistic, with expected net profits of RMB 12.26 billion, RMB 17.8 billion, and RMB 24.6 billion, respectively, indicating substantial growth [12]. Financial Summary - The company reported a net profit of RMB 476 million in 2022, with projections of RMB 1.08 billion in 2023 and RMB 3.13 billion in 2024, reflecting a significant recovery and growth trajectory [10]. - Earnings per share (EPS) are expected to rise from RMB 0.35 in 2022 to RMB 9.13 in 2025, showcasing a strong growth rate [10]. - The price-to-earnings (P/E) ratio is projected to decrease from 685 in 2022 to 26 in 2025, indicating improved valuation as earnings grow [10].

Core Viewpoint - Huaxi Securities maintains its profit forecast for Pop Mart (09992), projecting revenues of 38.384 billion, 52.768 billion, and 65.698 billion CNY for 2025-2027, with net profits of 13.291 billion, 18.599 billion, and 23.91 billion CNY respectively, and EPS of 9.91, 13.86, and 17.82 CNY, corresponding to PE ratios of 22, 16, and 12X, maintaining a "Buy" rating [1]. Group 1: Event Overview - On February 6, 2026, Pop Mart held its "Ride the Wave" theme annual meeting in Beijing, reviewing key breakthroughs and highlights from 2025 while outlining a clearer direction for 2026 [2]. - The company has seen impressive performance from several new products both domestically and internationally, leading to expectations of a strong start to the new year [2]. Group 2: 2025 Performance Review - The annual meeting highlighted significant expected revenue growth, with LABUBU's annual sales projected to exceed 100 million units and total product sales across all IPs expected to surpass 400 million units [3]. - The company has expanded its business coverage to over 100 countries and regions, with more than 700 global stores, up from 571 stores in the first half of 2025 [3]. - Supply chain capabilities have been strengthened, with the company currently operating six major supply chain bases [3]. Group 3: Strategic Vision - The founder emphasized the importance of art and culture in providing meaning in today's rapidly changing world, stating that the company should play a more significant role in offering spiritual comfort [4]. - Company executives indicated a future focus on operational details, expanding landmark stores, and incubating new businesses in overseas markets [4]. Group 4: New Product Performance - New products have performed well, with significant growth in GMV on domestic platforms like Douyin in January [5]. - The top-selling products include various new series, forming a strong multi-IP matrix to support the new year's performance [5]. - The company has partnered with Simon Property Group to open over 20 new standard retail stores across the U.S., indicating a strong channel expansion outlook for 2026 [5]. Group 5: Brand Universe Development - The company is diversifying into various sectors, including amusement parks, desserts, jewelry, and entertainment, to establish a comprehensive Pop Mart brand universe [6]. - The Pop Mart amusement park has attracted a significant number of visitors, ranking sixth among popular inbound tourism destinations in Beijing for 2025 [6]. - The dessert brand POPBakery has launched in multiple cities, with plans for further expansion [6].

Core Viewpoint - Huaxi Securities maintains its previous profit forecast for Pop Mart, projecting significant revenue and profit growth from 2025 to 2027, with a "buy" rating on the stock [1] Group 1: Financial Projections - Expected revenues for Pop Mart from 2025 to 2027 are 38.384 billion, 52.768 billion, and 65.698 billion CNY respectively, with net profits of 13.291 billion, 18.599 billion, and 23.91 billion CNY [1] - Earnings per share (EPS) are projected to be 9.91, 13.86, and 17.82 CNY for the same years, with corresponding price-to-earnings (PE) ratios of 22, 16, and 12 times [1] Group 2: Strategic Developments - The 2026 theme conference highlighted key achievements from 2025, emphasizing the importance of "beauty and design" in the company's mission to provide spiritual comfort [2] - The company plans to focus on operational details and expand landmark stores while incubating new businesses in overseas markets [2] Group 3: Product Performance - New products have shown strong performance, with significant growth in sales on domestic platforms like Douyin, particularly for new series launched for the Spring Festival [3] - The company has partnered with Simon Property Group to open over 20 new retail stores across the U.S., indicating a robust channel expansion strategy [3] Group 4: Brand Ecosystem - Pop Mart is expanding its brand universe beyond toys into areas like amusement parks, desserts, jewelry, and entertainment [4] - The company is developing its amusement park, with the second phase expected to double the area of the first phase, and has launched its dessert brand in multiple cities [4]