HK Stock Market Move | POP MART (09992) rose more than 5% to a new high, IP popularity continues to soar, Morgan Stanley expects its Q1 sales to double.

POP MART (09992) rose more than 5%, hitting a high of 130.5 Hong Kong dollars to set a new record since going public. As of the time of writing, it rose by 5.28% to 129.6 Hong Kong dollars, with a trading volume of 5.21 billion Hong Kong dollars. On the news front, Goldman Sachs recently pointed out in a research report that in terms of exclusive/self-owned IP, POP MART's new product highlights include the collaboration between Labubu and "One Piece," which has sold out in various channels. In terms of third-party IP, the Nezha IP products were very popular in February, with sales on Douyin exceeding 600,000 yuan; the brand also launched Barbie doll toys before Women's Day. According to data from Chan Mama, the supply of plush toys on Douyin in February decreased compared to January-December, but still higher than previous months. In the secondary market, the sample SKU prices of Labubu/Crybaby remained stable last month, with strong demand and tight supply-demand relations, and the popularity of the IP continued to rise. The bank also noted that POP MART is launching more plush toy products for various IPs, including third-party IPs such as Nezha and Mickey. Morgan Stanley released a research report stating that it expects POP MART's sales to double in the 2024 fiscal year, with a year-on-year acceleration of about 135% in the fourth quarter of the 2024 fiscal year. As for the 2025 fiscal year, it is expected that POP MART's sales will increase by 47%; sales in the first quarter of the 2025 fiscal year may increase by over 100%, as many popular products launched several months ago, despite more active restocking since the end of the fourth quarter of the 2024 fiscal year, are still quickly selling out. The bank raised POP MART's target price from 113 Hong Kong dollars to 135 Hong Kong dollars and reiterated its "hold" rating. This is mainly due to the upward revision of the company's adjusted earnings per share forecast for the 2024 to 2026 fiscal years by 7%, 19%, and 21% respectively.