Citigroup: Maintains "buy" rating on POP MART (09992) and raises target price to 120 Hong Kong dollars.

Citigroup has released a research report stating that it maintains a "buy" rating for POP MART (09992) with a target price raised from HK$105 to HK$120. The successful launch of cooperation with "Nezha 2" and authorized products by POP MART may bring potential upward momentum to the company. Therefore, the company's profit forecasts for 2024 to 2026 have been raised by 13.1% to 14% to reflect higher sales forecasts and better operational leverage, with profits expected to increase by 165%, 42%, and 27% respectively from 2024 to 2026. Citigroup stated that POP MART has shown strong capabilities in operating IP and expanding overseas, which will continue to support the company's steady growth momentum this year. It is expected that the trend of Labubu as a top IP will continue throughout the year, and other iconic IPs (such as Molly, SKULLPANDA, Crybaby, Dimoo, Hirono) will also continue to grow as the company extends the lifecycle of IPs through category expansion and new product launches.