On May 26, Pop Mart declined 3.26% in regular trading, trading at 148.9 HKD/share with turnover of HKD 580 million, as bearish sentiment continued following a sell-side downgrade published last week.

China Merchants Securities International (CMSI) maintained its Sell rating on Pop Mart with a target price of 127 HKD, implying roughly 15% downside from current levels. The broker cut its full-year growth forecast to approximately 15%, below management guidance of 20%, citing high-base pressure in Asia-Pacific markets particularly Thailand, slowing U.S. e-commerce momentum, and overseas store expansion likely falling short of the market consensus of 280 locations. CMSI also flagged rising overseas operating costs potentially compressing gross margins by 1-2 percentage points, and warned of zero or negative growth in the second half.

Notably, while the sell-side view is cautious, the article also highlighted that management has deliberately shifted from aggressive expansion to a quality-focused strategy, with CEO Wang Ning historically providing conservative guidance that actual results tend to exceed. Pop Mart reported full-year revenue of RMB 37.12 billion for fiscal 2025, representing 184.7% year-over-year growth.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)