Deutsche Bank: Maintains "Buy" Rating on POP MART (09992) with Target Price Raised to HKD 114

Deutsche Bank has released a research report stating that POP MART (09992) has multiple catalysts in the future. The company is actively expanding its product categories, from blind box toys to plush toys and other accessories, and officially launched its jewelry brand "Popop" in mid-January this year. The target price of the company has been raised from HKD 108 to HKD 114, with a "Buy" rating. Its earnings per share forecast for the next two years has been raised by 6% to 8%, with a projected revenue growth of 43% this year and a net profit increase of 48% to RMB 4.2 billion. On January 30th, POP MART launched the "Nezha" series toys, which were released synchronously with the Chinese animated film "Nezha 2". Within a few days, the "Nezha" series toys from POP MART were sold out in various channels and regions in mainland China. Since the release of the film, the industry's daily forecast for its total box office performance has been increasing, with the current expected total box office reaching as high as $1.6 billion (approximately RMB 12 billion), potentially entering the top ten global box office rankings. With the increase in Chinese national pride, the bank estimates that there is further room for improvement in the box office forecasts. In addition, the bank's channel survey shows that CryBaby is becoming the next popular IP, following Labubu or The Monsters. In POP MART stores visited by the bank, CryBaby occupies more shelf space, and its latest "Crying for Love" series has also been widely sold out.