2025-12-22 01:45Summary of the Conference Call for Pop Mart Company Overview - Company: Pop Mart - Industry: Toy and IP (Intellectual Property) Management Key Points and Arguments Business Performance - 2023 H2 Turning Point: Pop Mart experienced an upward turning point in business performance in the second half of 2023, with successful market expansion into Southeast Asia in 2024 and North America in the first half of 2025 [2][5] - Core IP Growth: The core IP, Labubu, has seen significant growth, contributing to stock price increases [2][6] - Supply and Demand Dynamics: Despite an increase in supply from scalpers, stores in China remain generally out of stock, indicating a tight supply-demand balance [2][7] Market Concerns - North America Market Worries: Concerns exist regarding the North American market due to pessimistic guidance from companies like Sea of Treasure, Mattel, and Disney for 2026, leading to stock price adjustments. However, North America only accounts for about 20% of revenue, and data has stabilized in the second half of the year [2][8] - China Market Confidence: Strong confidence in the Chinese market, with expectations of adding approximately 10 new stores in 2026 and e-commerce growth projected at 22%-30% [2][9] Expansion Plans - Store Expansion: Plans to open around 20 new stores in the Asia-Pacific region, 30 in North America, and 20-25 in Europe, with overall performance expected to maintain around 18 billion [2][9] - Future Development Logic: Focus on deepening offline operations and continuous overseas expansion, with a rapid store opening pace in North America and significant potential in Europe, Japan, and the Middle East [2][10] Product and Innovation Strategy - Supply Logic: The company employs a "70% full" supply logic to prevent inventory issues and extend product life cycles, with a controlled frequency of new product releases [5][15] - Platform Capability: Pop Mart's platform capability is a core competitive advantage, allowing for the continuous creation of long-lasting IP and the development of multiple tiers of IP [4][16] Future Outlook - Long-term Growth: The company is in a multi-category and multi-IP expansion phase, with a stable foundation despite potential declines in single-store performance. Long-term valuation is expected to reach 20-25 times compared to traditional toy companies [2][17][18] Additional Insights - IP Heat in Global Markets: Analysis shows a balanced IP structure in Southeast Asia, while the popularity of Labubu has stabilized in the US, UK, and France. Japan relies heavily on Labubu's popularity [2][14] - Theme Park Developments: The company is progressing with theme park projects, which are expected to enhance emotional connections with consumers [4][13] This summary encapsulates the key insights from the conference call, highlighting Pop Mart's current performance, market dynamics, expansion strategies, and future outlook in the toy and IP industry.