"Maintain a 'buy' rating for POP MART (09992) in Zheshang, looking forward to new releases in the fourth quarter."

Zheshang released a research report stating that it maintains a "buy" rating for POP MART (09992) and expects the company's net profit attributable to shareholders to be 13/17.9/22.9 billion yuan from 2025 to 2027; adjusted net profit is expected to be 14/19.2/24 billion yuan, with a year-on-year increase of +312%/+37%/+25%, corresponding to the current PE of 20/15/12 X. The company released its 2025 Q3 performance, with overall revenue increasing by +245-250% year-on-year, exceeding expectations; with revenue in China (including Hong Kong, Macao, and Taiwan) up by +185-190% year-on-year, and overseas revenue increasing by +365-370% year-on-year. In terms of domestic performance, 2025 Q3 offline channel revenue increased by +130-135% year-on-year, and online channel revenue increased by +300-305% year-on-year. The second-hand prices of LABUBU have remained stable for nearly 20 days, with hidden styles/popular regular styles still maintaining premiums; the popularity of Star People is rising, and MINI plush toys have a premium of 42-503% (Thousand Islands), with premiums of 124%/94%/84% for 1/2/3 generations. The collaboration products of Xiao Ye and Sun Yanzi hand puppets, SPX Wednesday plush toys, and other joint products are driving continuous expansion of the IP circle; as plush toys expand the IP phase, Halloween HACIPUPU/DIMOO/BabyMolly/CRYBABY launch resin plush toys; BJD category is expected to accelerate development, with MOLLYX Zootopia 1/12 movable dolls set to be released on October 23, and Zsiga movable dolls still have a 29% premium. Overseas high growth is prominent, with 2025 Q3 Asia-Pacific revenue increasing by +170-175% year-on-year, Americas revenue rising by +1265-1270% year-on-year, and Europe and other regions revenue increasing by +735-740% year-on-year. The United States is currently in a rapid store expansion period, with SPX Wednesday's New York flash sale of new products being very popular, and Apple CEO Cook appeared at the LABUBU ten-year anniversary tour on October 13, with brand value continuing to rise. Focus is on Q4 Halloween/Thanksgiving/Black Friday/Christmas peak season performance. Furthermore, the company's new product launches in the fourth quarter are highly anticipated. In the medium-term, the company is still in a period of strong IP expansion, category expansion, and overseas growth, with performance continuing to exceed expectations; in the long term, relying on a sustainable IP creation and operation mechanism, the company's moat continues to deepen, emphasizing the platform value of the company.