Yamato: It is expected that POP MART (09992) and others will benefit from the addition of the new gifting feature on WeChat.

Yamato has released a research report stating that the new gifting test feature on WeChat can help boost short-term demand, with categories such as makeup, toys, snacks, and health foods likely to benefit. The bank believes that this new feature could have a significant impact on certain consumer brands during the upcoming Lunar New Year holiday, as it creates new consumption scenarios for young consumers. Brands such as POP MART (09992), Proya Cosmetics (603605.SH), and Three Squirrels Inc. (300783.SZ) are expected to benefit. The bank points out that the total transaction volume in the WeChat Store is still relatively small, but with product upgrades and increased traffic distribution by mid-2024, this area appears to have become a key focus for Tencent (00700) to monetize through its WeChat platform.