HK Stock Market Move | POP MART (09992) rose more than 3% recently due to fluctuations in the second-hand price, which is related to supply adjustment. Institutions are optimistic about the company's long-term development prospects.

POP MART (09992) rose more than 3%, up 3.13% to HK$263.40 as of press time, with a trading volume of HK$27.91 billion. On the news front, Huatai believes that the recent fluctuations in POP MART's second-hand product prices may be due to the company actively increasing supply, which does not hinder the long-term development logic of the company. The bank stated that as a leading company in China's trendy toy industry, POP MART has the operational capability of the entire IP toy industry chain. With outstanding IP creation and operational capabilities, diverse consumer reach capabilities at the channel end, the company is continuously developing with high quality. With the gradual expansion of the company's overseas business and the continuous increase in product overseas influence, it is expected to tap into a second growth pole. HSBC Global Research report pointed out that Labubu has become a global trend culture symbol, comparable to Kaws and Bearbrick, both of which have experienced over 10 years of development cycles. Labubu is set to actively collaborate with global brands only starting in 2024, and it is too early to assert that it has reached its peak. The bank maintains its "buy" rating on POP MART with an unchanged target price of HK$379, equivalent to forecasted P/E ratios of 41.5 times and 30.8 times for the current and next year.