Huachuang Securities: Maintains a "strong buy" rating on POP MART (09992) with a target price of 345.39 Hong Kong dollars.

Huachuang Securities released a research report stating that it maintains a "strong buy" rating for POP MART (09992). Based on the 25Q3 performance, the company's profit forecast has been raised, with expected net profit attributable to the parent company for the years 2025-2027 being 12.32/16.93/21.09 billion yuan, corresponding to a target price of 345.39 Hong Kong dollars. The company's overall revenue in 25Q3 increased by 245-250%, with revenue from China (including Hong Kong, Macau, and Taiwan) increasing by 185-190%, and overseas revenue increasing by 365-370%. The high performance growth confirms the long-term potential of global expansion and synergies in the IP ecosystem. The company's rich IP matrix and diversified product matrix are expected to continue to meet the needs of the trendy toy market, and the company's ability to operate the entire IP industry chain is promising. Domestic market: The company has launched new products intensively in the third quarter, and online channel growth has been outstanding. Since the third quarter, the company's production capacity has gradually increased, coupled with consumer demand under the pre-sale model gradually being met, effectively driving sales growth. By channel, in the third quarter, offline channel revenue in China (including Hong Kong, Macau, Taiwan) increased by 130%-135% year-on-year, and online channel revenue increased by 300%-305% year-on-year. In terms of new products, the mini version LABUBU launched in August and the star people's delicious moment plush pendant launched in September both sold at a significant premium in the secondary market, validating the company's ability to push explosive products continuously; this year, the company has more abundant product reserves for occasions like Halloween, with products such as Why So Serious and Hirono's Guiguland maintaining their popularity. At the same time, the ten-week global tour exhibition "MONSTERSBYMONSTERS: NOWANDTHEN" held by the company in Shanghai from October 12 to November 8, 2025 attracted the CEO of Apple, continuing to increase brand awareness. Overseas market: Continuing the high growth momentum, collaborative products have the potential to become important drivers. By region, revenue growth in the Asia-Pacific market increased by 170%-175% year-on-year, revenue in the Americas increased by 1265%-1270% year-on-year, and revenue in Europe and other regions increased by 735%-740% year-on-year. Recently, the Netflix US drama "Wednesday" season two has been popular, and the company launched a collaborative product around SKULLPANDA, with positive feedback on TikTok, and the official US account's related video views exceeding 1.5 million, potentially becoming a driver for future growth.