Core Viewpoint - The company is expected to achieve significant revenue and profit growth in the first half of 2025, driven by strong domestic and international sales, new product launches, and improved store efficiency [1][2]. Group 1: Financial Performance - The company forecasts over 200% year-on-year revenue growth for the first half of 2025, exceeding 13.67 billion RMB [1]. - Group profit (excluding unrealized gains from financial instruments) is projected to grow by over 350%, reaching at least 4.34 billion RMB [1]. - The profit margin for the first half of 2025 is expected to be 31.7%, an increase of 10.6 percentage points year-on-year, marking a historical high [1]. Group 2: Domestic Growth - The Labubu 3.0 series launched in April has generated high demand, leading to a temporary high premium in the second-hand market [2]. - The company has replenished stock in June to meet consumer demand, resulting in a slight price drop in the second-hand market while still maintaining a premium, indicating sustained IP popularity [2]. - The successful expansion of multiple IPs and the introduction of plush products are expected to enhance average transaction value [2]. Group 3: International Expansion - The company is experiencing rapid growth in Asia and is expanding quickly in Europe and North America, with significant results from its European expansion [2]. - The overseas revenue share is expected to increase in the first half of 2025, supported by strong consumer spending in these regions [2]. - A global organizational restructuring was initiated in April to enhance market operational efficiency and accelerate business development [2]. Group 4: Profit Forecast and Investment Rating - The company has established a competitive advantage through a diverse IP matrix, strong IP operation capabilities, and extensive online and offline channels [3]. - The projected net profits for 2025-2027 are 10.05 billion, 13.11 billion, and 17.02 billion RMB, with corresponding price-to-earnings ratios of 33.8, 25.9, and 19.9 times [3]. - The company maintains a "recommended" rating based on its growth potential and competitive positioning [3].

Investment Rating - The report maintains a "Buy" rating for Pop Mart International Group Limited [2][5] Core Views - The company is expected to achieve over 200% year-on-year revenue growth in the first half of 2025, exceeding 13.67 billion RMB, with net profit growth of over 350%, reaching at least 4.34 billion RMB [3] - The company's profit margin reached a historical high of 31.7%, an increase of 10.6 percentage points year-on-year, driven by strong sales, new product launches, and overseas expansion [3][4] - The company has established a competitive advantage through a diverse IP matrix, strong IP operation capabilities, and extensive online and offline channels [5] Summary by Sections Financial Performance - Revenue for 2023 is projected at 6.30 billion RMB, with a growth rate of 36.46% - By 2025, revenue is expected to reach 31.80 billion RMB, with a growth rate of 143.93% - Net profit for 2023 is estimated at 1.08 billion RMB, with a growth rate of 127.55%, and is projected to reach 10.05 billion RMB by 2025, with a growth rate of 221.41% [6][10] Market Expansion - The company has seen strong domestic growth, particularly with the Labubu 3.0 series, which has generated high demand and maintained premium pricing in the secondary market [4] - Internationally, Pop Mart is expanding rapidly in Asia and making significant inroads in Europe and the Americas, with overseas revenue share increasing in the first half of 2025 [4][5] Future Outlook - The company is expected to continue its high growth trajectory in overseas markets, particularly in high-consumption regions like Europe and the Americas [5] - The financial forecasts for 2025-2027 indicate a steady increase in net profit, with projections of 10.05 billion RMB in 2025, 13.11 billion RMB in 2026, and 17.02 billion RMB in 2027 [6][10]