Summary of the Conference Call for Pop Mart Company Overview - **Company**: Pop Mart - **Industry**: Toy and New Consumption Sector Key Points and Arguments 1. **Share Buyback Announcement**: On January 19, Pop Mart announced a buyback of 1.4 million shares at a cost of HKD 250 million, which reflects the company's confidence and indicates a clearer bottom signal for the stock price [1][2]. 2. **Previous Buyback Activity**: The company previously conducted a buyback from August 29 to December 30, 2022, and the shares were canceled on March 6, 2023, after which the stock price stabilized [1][2]. 3. **Share Price Context**: The average buyback price was approximately HKD 180 per share, while the share prices on January 9 and January 14 for the stock awards were HKD 197 and HKD 192, respectively, suggesting a clearer anchor point for the stock price [2]. 4. **Market Sentiment**: Recent stock price adjustments were primarily due to third-party high-frequency data falling short of expectations, leading to intense market speculation [3]. 5. **Short Selling Data**: As of January 9, the number of outstanding short positions was approximately 97.74 million shares, accounting for about 7.28% of the total share capital [4]. 6. **Bearish Reports**: Bernstein released a bearish report indicating a slowdown in average store efficiency for Pop Mart's offline stores in China [4]. 7. **Data Discrepancies**: There are concerns regarding the accuracy of third-party data, which may underestimate growth potential in North America for Q4 2025 [4]. 8. **Demand Side Potential**: - The depth of leading IPs may be significantly underestimated, with the Labubu series having substantial room for emotional and situational exploration [4]. - The width of the IP matrix is also underestimated, with healthy structural diversity among established and new IPs [4]. 9. **Supply Side Analysis**: - Plans to open approximately 208 new stores overseas by 2026 [5]. - The potential for increasing fan base penetration, with an estimated penetration rate of about 10% in the first half of 2025 [5]. - Opportunities for increasing average transaction value through product diversification and premiumization [5]. 10. **Future Catalysts**: Key upcoming events include the company's annual meeting in February, the disclosure of the 2025 annual report and 2026 outlook in March, and the Q1 report in April [5].