Morgan Stanley maintains the "overweight" rating for POP MART (09992) and raises the target price to 135 Hong Kong dollars.

Morgan Stanley released a research report stating that it maintains a "buy" rating for POP MART (09992), with the target price raised from HK$113 to HK$135. This is mainly due to the upward adjustment of the company's earnings per share forecast for the fiscal years 2024 to 2026 by 7%, 19%, and 21% respectively. The price-to-earnings ratio forecast for the fiscal year 2025 remains unchanged at 35 times. Morgan Stanley projects that POP MART's sales will double in fiscal year 2024, with a year-on-year acceleration in the fourth quarter of approximately 135%. For fiscal year 2025, POP MART's sales are expected to increase by 47% (up 27% in the Chinese market and 77% in overseas markets); sales in the first quarter of fiscal year 2025 may increase by over 100% as many popular products launched several months ago continue to sell out rapidly despite increased replenishment efforts since the end of the fourth quarter of fiscal year 2024. Morgan Stanley also anticipates that POP MART's adjusted net profit will increase by 52% from approximately RMB 3.2 billion in fiscal year 2024 to approximately RMB 4.8 billion in fiscal year 2025. Additionally, the bank forecasts that POP MART's adjusted net profit margin for fiscal year 2024 will be 25.4%, and for fiscal year 2025, it is expected to be 26.3%.