Core Viewpoint - Pop Mart's stock price rebounded significantly on January 20, closing up approximately 9%, following the announcement of a share buyback program worth HKD 251 million [1] Group 1: Stock Performance and Buyback - On January 20, Pop Mart announced a buyback of 1.4 million shares at a price range of HKD 177.7 to HKD 181.2 per share, marking the company's first buyback since the beginning of 2024 [1] - Morgan Stanley noted that this buyback could attract more investor attention, particularly from those looking for stock price catalysts [1] - Since its listing in 2020, Pop Mart's stock has experienced multiple cycles of rise and fall, with its market value once exceeding HKD 100 billion before declining [1] Group 2: Market Conditions and Performance Discrepancies - Analysts suggest that the overall pressure on the Hong Kong stock market since the second half of 2025 has affected Pop Mart and other consumer sector stocks, despite their strong performance [2] - In the second half of 2025, Pop Mart's stock price fell approximately 30%, contrasting sharply with a 245% year-on-year increase in overall revenue reported in the third quarter [1][2] - The company has expanded its blind box production to meet market demand, which has alleviated the "difficult-to-obtain" situation but also led to a decline in secondary market premiums [2] Group 3: IP Performance and Growth Strategy - Pop Mart's half-year report for 2025 indicated that aside from LABUBU, the fastest-growing IPs were HACIPUPU and CRYBABY, with year-on-year growth rates of 249.6% and 248.7%, respectively [2] - Huatai Securities believes that Pop Mart's global and IP group strategies leverage its unique business model to drive rapid growth, positioning it as a leading platform for global trendy toy IPs [2]

Core Insights - LABUBU is a successful phenomenon in the collectible toy industry, but the company needs to consider sustainable development after achieving success [2] - The revenue from the THE MONSTERS series, where LABUBU belongs, constitutes a significant portion of the company's income, raising questions about the development of other IPs [2] - The company acknowledges the need to improve product quality and manage supply to prevent counterfeit products from entering the market [2] Company Performance - LABUBU's popularity has led to issues such as long-term stock shortages and quality complaints from consumers [2] - The introduction of a mini version of LABUBU has generated significant consumer interest, but the company must continue to innovate and develop new IPs alongside LABUBU [2][3] - The company is exploring other potential IPs, with the "Star People" series showing promising sales performance [3][4] Market Trends - The "Star People" series, particularly the "Good Dream Meteorological Bureau" series launched in August, has seen increased consumer interest and is experiencing stock shortages [4] - The resale market for "Star People" products has shown significant price fluctuations, with hidden versions selling for over 700 yuan, indicating strong demand [4] - Other IPs like HACIPUPU and CRYBABY have also shown remarkable growth, with revenue increases of 249.6% and 248.7% respectively in the first half of the year [5]

Group 1 - The Hang Seng Index rose by 0.62% and the Hang Seng Tech Index increased by 1.96%, with retail and automotive sectors leading the gains [1] - Southbound funds recorded a net inflow of HKD 35.67 billion, indicating strong investor interest [1] - The Hong Kong consumer sector showed slight fluctuations during the midday session, with the Hong Kong Consumer ETF (513230) rising nearly 1%, driven by stocks like Great Wall Motors, Pop Mart, Geely, and Chow Tai Fook [1] Group 2 - CITIC Securities reported that the potential of second-tier IPs is rapidly increasing, with Pop Mart establishing a strong platform for trendy toys, driven by leading IPs [2] - In the UK market, the top three IPs by cumulative sales on TikTok Shops are Labubu (52%), Crybaby (26%), and SKULLPANDA (9%), while in the Philippines, the leading IPs are Xiaoye (46%) and Crybaby (40%) [2] - The Hong Kong Consumer ETF (513230) tracks the CSI Hong Kong Stock Connect Consumer Theme Index, encompassing major players in both new consumption and internet e-commerce sectors, including Pop Mart, Lao Pu Gold, and Mi Xue Group [2]

Core Insights - POP MART International Group reported a revenue of 13.04 billion RMB for the full year of 2024, marking a year-on-year increase of 106.9%, and an adjusted net profit of 3.4 billion RMB, up 185.9% from the previous year [1] Revenue Breakdown - Revenue from Mainland China was 7.97 billion RMB, reflecting a year-on-year growth of 52.3% [2] - Revenue from markets outside Mainland China, including Hong Kong, Macao, and Taiwan, reached 5.07 billion RMB, up 375.2% year-on-year [2][6] Intellectual Property Performance - The IP operation system achieved maturity with four key properties generating over 1 billion RMB in revenue [3] - Revenue from 13 other IPs surpassed 3 billion RMB, showcasing significant growth [3] - HIRONO alone achieved revenue of 730 million RMB, reflecting year-on-year growth of 106.9% [4] Business Expansion - The company opened its first brick-and-mortar outlets in Vietnam, Indonesia, the Philippines, Italy, and Spain, expanding its global footprint [7] - The number of brick-and-mortar stores grew to 130, while ROBOSHOPs increased to 192 [6] Product Lineup and Revenue Categories - Annual revenue from figures reached 6.94 billion RMB, up 44.7%, while plush toys saw explosive growth with revenue of 2.83 billion RMB, up 1289% year-on-year [8] - The MEGA COLLECTION brand generated revenue of 1.68 billion RMB, an increase of 146.1% year-on-year [8] Operational Efficiency - The gross profit margin hit a record 66.8%, up by 5.5 percentage points from 61.3% in 2023 [9] - Inventory turnover days decreased from 133 days in 2023 to 102 days in 2024, indicating enhanced operational capabilities [9]