HK Stock Market Move | POP MART (09992) rose more than 4% in early trading. The company has been conducting buybacks for four consecutive days. Morgan Stanley said the market has seriously underestimated the business.

POP MART (09992) rose more than 4% in early trading, rising 4.25% as of the time of writing to reach 149.7 Hong Kong dollars, with a trading volume of 2.68 billion Hong Kong dollars. In terms of news, POP MART announced that on March 31, the company repurchased 690,000 shares, with a repurchase amount of 99.5341 million Hong Kong dollars. Since March 26, the company has been conducting repurchases for 4 consecutive days, repurchasing a total of 7.95 million shares, with a total repurchase amount of 1.198 billion Hong Kong dollars. This year, the company has conducted a total of 6 repurchases, repurchasing 9.85 million shares in total, with a total repurchase amount of 1.546 billion Hong Kong dollars. Morgan Stanley believes that the severity of the three issues of rising POP MART inventory, pressure on overseas profit margins, and disputes over new businesses may be overestimated: 40-45% of overseas SG&A is variable costs that change with sales, and losses will not be infinitely magnified, as there is no pressure to clear out expired or seasonal products; the new businesses worth tracking are theme parks and animated short films to be premiered this year. The bank points out that investors have already priced in the worst-case scenario, and there is still a 20% upside potential even under extreme assumptions.