Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Retail Sector - **Key Markets**: Mainland China, Hong Kong, Singapore, Indonesia - **Investor Engagement**: Over 60 investors met during marketing trips in the past two weeks [2][3] Core Insights IP Retail Sector - **Pop Mart (9992.HK)**: - Positive feedback from consumer specialists regarding potential catalysts in its product pipeline and geographic expansion [2][3] - Management is exercising restraint with a strong new product pipeline that has not yet launched, including larger formats of Labubu and Zimomo [3] - Significant store expansion opportunities in Western markets [3] - **Miniso (MNSO.N)**: - Received broad pessimism due to intense competitive pressures and a history of earnings misses [2][3] Sportswear Sector - **Li Ning (2331.HK)**: - Share price appears to have stabilized, with limited shorting interest but not significant new buying conviction [4] - **ANTA Sports (2020.HK)**: - Generally positive views, with strong performance in FILA and outdoor segments offsetting misses in the core ANTA brand [4] - **Topsport International (6110.HK)**: - Favorable sentiment due to positive comments from Nike regarding new product initiatives [4] Dining Sector - **Haidilao (6862.HK)**: - Negative feedback due to high consensus earnings estimates and a decline in dine-in traffic attributed to aggressive food delivery discounting campaigns [4] Investment Recommendations - **Top Picks**: - **Pop Mart**: Recommended due to its rising global popularity [5] - **ANTA**: Strong demand from outdoor brands supports a buy recommendation [5] Risks and Valuation - **Key Risks for China Consumer Retail**: - Demand recovery variability, cost inflation or deflation, outcomes of reforms, and changes in competitive landscape [7] - **Valuation Methodology**: - DCF-based valuation methodology is used for Pop Mart, Miniso, Li Ning, ANTA, Topsports, and Haidilao [7] Additional Notes - **Market Sentiment**: There is a clear divergence in sentiment between specialists and generalists regarding the potential of companies in the retail sector [2][3] - **Earnings Estimates**: Concerns over high consensus earnings estimates for Haidilao indicate potential risks in the dining sector [4]

Core Viewpoint - The popularity of Pop Mart's Starry People series collectibles has surged, leading to rapid sellouts and significant price increases in the secondary market [1][7][10]. Sales Performance - The Starry People series, following the success of Labubu and Zimomo, has seen items sold out almost immediately upon release in various stores [1]. - Consumers have reported difficulty in finding the Starry People series in Shanghai, indicating high demand and low supply [5]. Market Dynamics - Prices for the Starry People series collectibles have reportedly skyrocketed, with some items reaching levels that consumers find hard to comprehend [7][10]. - Despite the high prices, many consumers are still opting to purchase these items at a premium [8]. Theft Incident - A theft incident occurred in a Pop Mart store in Shanghai, where a customer stole two display items from the Starry People series after they sold out [11][14]. - The suspect, identified as Qi, justified her actions by stating that she believed the items were not worth much and thought she would not face consequences [16][19]. - The stolen items, valued at 178 yuan in total, led to legal repercussions for the suspect, highlighting the lengths to which consumers may go to obtain these popular collectibles [19].

Core Viewpoint - Bubble Mart is experiencing explosive growth globally, driven by the popularity of the Labubu toy, leading to a 27% increase in stock price over the past 40 days [1][3]. Group 1: Market Expansion - Bubble Mart's cross-cultural appeal indicates that its total addressable market (TAM) is significantly larger than previously expected, especially in the European and American markets where penetration is just beginning [4][5]. - The company has accelerated its overseas expansion, adding 31 new stores this year, bringing the total to 161, with North America and Europe accounting for 35% of this total [5][9]. Group 2: Product Line Development - The recent launch of the "Labubu 3.0" series has sold out in both domestic and international markets, indicating strong demand [7]. - The upcoming "Wacky Mart" series, set to launch on June 13, will include a diverse range of products, with prices 30%-185% higher than standard figures, which is expected to enhance gross margins [7]. Group 3: Financial Projections - Deutsche Bank has raised its revenue forecast for Bubble Mart, predicting a 122% year-on-year increase to 28.89 billion RMB in 2025, with overseas revenue expected to rise from 39% in 2024 to 55% in 2025 [9][10]. - The net profit forecast for 2025 is set at 7.91 billion RMB, with a net profit margin of 27.4%, up from 24.0% in 2024 [9][10]. - The report also indicates a 20-25% increase in EPS expectations for 2025-2027, reflecting the growing contribution from overseas markets [10][12]. Group 4: Analyst Ratings - Deutsche Bank has raised its target price for Bubble Mart from 200 HKD to 303 HKD, maintaining a "buy" rating, with expectations significantly above market consensus for 2025 revenue and net profit [12].