Pop Mart (09992.HK) shares surged 5.74% during intraday trading, reaching a new record high. The stock has shown impressive performance this year, with a remarkable 152% increase year-to-date. This latest jump comes as CGS International (CGSI) initiates coverage on the stock with an "add" rating, highlighting the company's transformation from a toy retailer to an intellectual property (IP)-centric platform.

CGSI has set a price target of HK$249.60 for Pop Mart, representing a potential 20% upside from its previous closing price. The positive outlook is based on Pop Mart's faster growth momentum and larger potential for global expansion compared to its peers. Analysts expect the company to trade at a premium due to these factors, driving investor interest in the stock.

Pop Mart, known for its popular blind box toys featuring characters like Labubu and Skullpanda, is aggressively pursuing international expansion. The company plans to focus on the US and European markets in the coming year, aiming to open 100 new stores overseas. CGSI forecasts Pop Mart's domestic revenue to rise by 38% in FY2025, while projecting a compound annual growth rate of 68% for overseas revenue between FY2024 and FY2027. Additionally, Pop Mart is diversifying its operations beyond toys, venturing into theme parks, mobile games, and animated content, further enhancing its IP commercialization potential.