Core Viewpoint - Pop Mart's stock price has significantly declined, dropping 44% from its August peak, leading to a market value loss of over 200 billion HKD, comparable to a major company like Haitian Flavoring and Food [1][2] Stock Performance - In the last seven trading days, Pop Mart's stock has only seen two days of gains, with significant declines on other days, reflecting a market capitalization reduction of over 40% since the peak on August 29 [1][2] - The stock was initially listed at 80 HKD per share in late 2020, fell below 10 HKD in late 2022, and reached a high of 339.8 HKD on August 29, 2025 [1] Market Concerns - Concerns have arisen regarding Pop Mart's sales performance during the upcoming Black Friday promotions in the U.S., with expectations that the market interest in new products may not meet previous levels [2][4] - The premium on hidden versions of products has decreased by over 50%, and regular versions are selling below official retail prices on secondary markets [4] Growth and Revenue Projections - Deutsche Bank's report indicates that while there is a strong growth driven by the Labubu IP, there are significant risks related to supply and demand imbalances [5] - Two contrasting scenarios for future growth have been proposed: one predicting a 20% decline in domestic revenue and a 10% decline in overseas revenue by 2026, and another forecasting a 30% increase in domestic revenue and a 50% increase in overseas revenue [5] Business Model and Strategy - Pop Mart has successfully transitioned from a retail company to an IP incubation operation, creating a matrix of popular IPs, including Labubu and Crybaby [8][10] - The company has increased its production capacity from an average of 10 million units per month to 50 million units by the end of the year, significantly boosting revenue and profit [9][10] Challenges of Mass Production - The rapid expansion of production capacity may dilute the brand's appeal, as products that were once scarce become widely available, potentially transforming them into mass-market items [10][11] - The company is advised to shift from explosive growth to sustainable growth, emphasizing the importance of maintaining the "cool" and "scarcity" attributes of its products [12][13] Comparison with Disney - Pop Mart's business model is still in its early stages compared to Disney, which has diversified into entertainment, sports, and experiential sectors, generating substantial revenue [15][18] - Disney's success is attributed to its ability to create emotional connections through IP and monetize them across various platforms, a strategy that Pop Mart has yet to fully adopt [19][20] Future Directions - To evolve into a "emotional consumption ecosystem," Pop Mart needs to explore new markets and develop business areas closely related to its core IPs, moving beyond just selling toys [20][21][22]

Core Viewpoint - Guohai Securities maintains a "buy" rating for Pop Mart (09992) and raises the company's profit forecast, expecting revenue and net profit growth from 2025 to 2027, driven by its leadership in the trendy toy culture and commercialization [1] Group 1: Revenue Growth - The company expects overall revenue growth of 245%-250% year-on-year for Q3 2025, with China growing by 185%-190% and overseas markets by 365%-370% [1] - Revenue from overseas regions is experiencing high growth, with Asia-Pacific, Americas, and Europe showing year-on-year increases of 170%-175%, 1265%-1270%, and 735%-740% respectively [1] Group 2: Store Expansion - The company has accelerated its store openings in North America, with a total of 154 overseas stores by the end of Q3 2025, aiming for 200 by the end of 2025 [1][2] - A partnership with Books-A-Million has been established to enhance market penetration, with new products being launched in their stores and online [2] Group 3: Product Performance - The "Starry People" IP is gaining momentum, with Q3 2025 showing a 130%-135% year-on-year increase in offline revenue and a 300%-305% increase in online revenue [3] - The company launched 20 blind box products and 14 plush series in Q3 2025, indicating an accelerated product release schedule [3] Group 4: Seasonal Opportunities - Q4 is expected to be a peak season with multiple holidays, including Halloween, Double 11, Thanksgiving, and Christmas, which will drive sales [4] - The company anticipates the release of significant new products during these key holiday periods [4]