Core View - Pop Mart's revenue increased by 245-250% year-over-year (YoY) in 3Q25, surpassing market expectations, with strong growth driven by the popularity of Twinkle Twinkle and effective retail expansion [1][2] Revenue Growth - Total revenue growth accelerated in the domestic market, with a YoY increase of 185-190% in China, while overseas growth moderated to 365-370% YoY due to a higher comparison base [2] - In 3Q25, revenue from offline and online channels in China grew by 130-135% and 300-305% YoY, respectively, attributed to the success of Labubu 4.0 and Twinkle Twinkle [2] - Revenue in the US surged by 1,265-1,270% YoY and in Europe by 735-740% YoY, while growth in the Asia Pacific region slowed to 170-175% YoY [2] Product Performance - Twinkle Twinkle emerged as a breakout sensation in 3Q25, with newly launched collections consistently selling out and commanding a 100% premium in the secondary market [2] - Upcoming product launches, such as the Fresh-Baked Mini Cookies Series Plush Toys, are expected to support continued strong revenue growth in 4Q25 [2] Tariff Risks - Potential US tariff risks are manageable through strategic pricing adjustments and production capacity relocation to Vietnam [3] - The company demonstrated resilience in the face of tariff threats, successfully adjusting prices in the US during 1H25 [3] Valuation - Core net profit forecasts for 2025/26 have been revised up by 20%/23%, while the target price (TP) has been raised to HK$405.6 [5] - The target multiples for 2025E/26E P/E have been adjusted down to 38x/27x, reflecting expectations of gradual revenue growth deceleration [5]

Core Viewpoint - Morgan Stanley upgraded Pop Mart's investment rating from "Neutral" to "Overweight" and raised the target price from HKD 300 to HKD 320, anticipating significant sales and adjusted profit growth in the coming years [1] Financial Projections - The bank expects sales and adjusted profit to increase by 165% and 276% year-on-year, respectively, for this year [1] - For the next year, sales and adjusted profit are projected to grow by 28% and 29% year-on-year, respectively [1] Valuation and Market Position - Pop Mart is currently trading at a forecasted price-to-earnings ratio of 20 times for the next year, which Morgan Stanley considers attractive [1] Future Catalysts - Anticipated catalysts for growth include: 1. Third-quarter operational data to be released at the end of October [1] 2. Strong sales expected during Halloween and Christmas [1] 3. The release of the "Labubu & Friends" animation anticipated in December [1] 4. The expected launch of "Labubu 4.0" projected for March to April next year [1]

Core Viewpoint - Morgan Stanley has upgraded Pop Mart (09992) investment rating to "Overweight" and raised the target price from HKD 300 to HKD 320, anticipating significant sales and adjusted profit growth for the company in the coming years [1] Financial Projections - The firm has revised its earnings estimates for 2025 to 2027 upwards by 5% to 7%, projecting a year-on-year sales increase of 165% and an adjusted profit increase of 276% for this year [1] - For the next year, sales and adjusted profit are expected to rise by 28% and 29% respectively [1] Valuation and Market Position - Pop Mart is currently trading at a forecasted price-to-earnings ratio of 20 times for the next year, which is considered attractive by the firm [1] Future Catalysts - Anticipated catalysts for future growth include: 1. The release of third-quarter operational data at the end of October 2. Strong sales expected during Halloween and Christmas 3. The anticipated release of the "Labubu & Friends" animation in December 4. The expected launch of Labubu 4.0 in March to April next year [1]