Morgan Stanley: POP MART(09992) made its first share buyback in the past two years, with an estimated net cash holding of 20 billion RMB at the end of last year.

Morgan Stanley released a research report stating that POP MART (09992) disclosed in its report that it repurchased 1.4 million shares on the Stock Exchange of Hong Kong yesterday (19th), with a price range of 177.7 to 181.2 Hong Kong dollars per share, involving a total amount of approximately 251 million Hong Kong dollars. The last repurchase occurred in February 2024, just before the disclosure of financial results. The bank estimated that POP MART would record a net profit of 12.6 billion yuan in 2025 and hold a net cash of 20 billion yuan by the end of 2025, demonstrating that the company has ample financial resources to further reward its shareholders. Historical records show that POP MART repurchased 34.3 million shares in 2022, amounting to approximately 7.35 billion Hong Kong dollars, with an adjusted net profit of 574 million yuan that year. In 2023, the company repurchased 19.9 million shares, amounting to approximately 3.71 billion Hong Kong dollars, with an adjusted net profit of 1.2 billion yuan. As usual, the company did not set a specific repurchase size or timetable, but made evaluations based on the market conditions at the time. According to a resolution from a shareholder meeting, POP MART can repurchase up to 10% of the total issued shares. The company can continue to repurchase shares until 30 days before the disclosure of financial results, unless granted an exemption.