CMSC maintains a "strong buy" rating for POP MART (09992) as overseas localization operations continue to advance.

CMSC's research report stated that it maintains a "strongly recommended" rating for POP MART (09992), with its overseas organizational structure promoting continued overseas growth. The IP products such as "Fairy Troupe" LABUBU/Star People show good potential, considering the company's outstanding global IP operation capabilities and flexible production capacity scheduling. The firm believes that the company's trend risks are controllable and continues to have a positive outlook on its future development. Key points from CMSC include: 1. Marginal growth trends in high-frequency data tracked by three parties 2. Offline sales and second-hand transactions 3. Review of the development of Japanese IP companies Takara Tomy and Sanrio 4. Continuous promotion of overseas localization operations In summary, CMSC's report highlights the company's potential to navigate trend risks based on its diversified IP and product matrix, flexible supply chain, and strong IP and store operation capabilities. POP MART has completed an organizational structure adjustment for its overseas operations, transitioning from domestic IP-focused to global IP and channel platform-focused. The organization upgrade includes a focus on regional strategy and the establishment of regional headquarters in Greater China, the Americas, Asia-Pacific, and Europe. This upgrade aims to enhance the management and operation of the company's global business. There are risks related to counterfeit goods management, public opinion and regulatory risks, unexpected store openings, underperformance in new IP and category expansions, and operational risks for the company.