Core Viewpoint - The recent popularity of the domestic toy brand LABUBU has led to a global frenzy, with products selling out quickly and prices doubling in the secondary market, attracting attention from international celebrities [1][15]. Group 1: Sales and Demand - LABUBU plush toys and keychains have seen overwhelming demand, leading to long queues and even altercations at physical stores in South Korea [1][6]. - The company announced a temporary halt to offline sales of LABUBU products due to safety concerns arising from the chaotic purchasing environment [6]. - In China, the opening of The Monsters convenience store in Shanghai saw appointment slots for entry sell out instantly, with customers needing to pay a nominal fee to secure a spot [9][11]. Group 2: Market Dynamics - The demand for LABUBU products has resulted in significant price increases in the secondary market, with some items being resold for over 1,000 yuan, compared to their original price of 199 yuan [15]. - A rare LABUBU collectible was sold at an auction for an astonishing 1.08 million yuan, highlighting the brand's growing value and desirability among collectors [17].

Core Insights - The LABUBU series of convenience stores by Pop Mart has gained significant popularity, creating a global trend [2][3][4][5] Group 1 - The first exhibition of the LABUBU series in South China was held on June 13 in Tianhe District, Guangzhou, attracting many visitors [2][3][4][5] - The event drew crowds of fans who engaged in photo opportunities and social media check-ins [2][4][5] - The LABUBU brand has recently experienced a surge in popularity, indicating strong market interest and engagement [3][4][5]

Core Viewpoint - LABUBU, a popular IP under Pop Mart, is experiencing a surge in popularity, leading to significant price increases in both primary and secondary markets, indicating a cultural phenomenon and strong market demand [1][2]. Group 1: LABUBU's Market Performance - LABUBU's themed pop-up event in Chengdu sold out quickly, with scalpers reselling tickets for 500 yuan, up from the original price of 0.01 yuan, highlighting the high demand [1]. - A mint condition LABUBU was sold for 1.08 million yuan, while another variant fetched 820,000 yuan, showcasing the extreme value placed on these collectibles [1]. - In the secondary market, a LABUBU blind box originally priced at 99 yuan is being resold for 3,000 yuan, reflecting a more than 30-fold increase in price [1]. Group 2: Financial Performance of Pop Mart - Pop Mart reported a revenue of 13.04 billion yuan for the previous year, a year-on-year increase of 106.9%, with an adjusted net profit of 3.4 billion yuan, up 185.9% [2]. - The company plans to increase its offline stores by 38, bringing the total to 401, and expand its robot stores by 110, totaling 2,300 [2]. - Revenue from offline stores reached 3.83 billion yuan, a 43.9% increase, while robot store revenue was 700 million yuan, up 26.4% [2]. Group 3: Analyst Predictions and Target Prices - Morgan Stanley raised Pop Mart's target price from 224 yuan to 302 yuan, predicting a compound annual growth rate of 42% in sales from 2025 to 2027, with overseas revenue expected to account for 65% [2]. - Deutsche Bank significantly increased its target price for Pop Mart from 200 yuan to 303 yuan, citing improved gross margins in overseas markets and premium pricing on new products [4]. - Jianyin International is optimistic about the continuity of the LABUBU blind box series, forecasting a 72% increase in revenue and a 90% increase in profit for 2025, raising its target price to 288 yuan [4].