Huaxi Securities has released a research report maintaining its previous profit forecasts. The firm projects POP MART's (09992) revenue for 2025-2027 to be RMB 38.384 billion, RMB 52.768 billion, and RMB 65.698 billion, respectively. Net profit attributable to parent company shareholders is forecasted at RMB 13.291 billion, RMB 18.599 billion, and RMB 23.91 billion for the same periods. Earnings per share (EPS) are estimated to be RMB 9.91, RMB 13.86, and RMB 17.82. Based on the latest share price (closing at HKD 243.2 on February 6, exchange rate: 1 HKD = 0.91 CNY), the corresponding price-to-earnings (P/E) ratios are 22x, 16x, and 12x. Huaxi Securities reiterates its "Buy" rating.
The primary views from Huaxi Securities are outlined below:
On February 6, 2026, POP MART held its annual meeting themed "Ride the Wave" at the Diamond Court of the Beijing National Tennis Center. The event reviewed key breakthroughs and highlights from 2025 and also outlined a clearer direction and vision for the upcoming year of 2026. With several new products performing impressively both domestically and overseas recently, the securities firm anticipates a strong start to the new year for the company's performance and remains optimistic about the long-term commercial value of its IP operation platform.
The annual meeting highlighted POP MART's 2025 performance, emphasizing a strong commitment to the cause of "Beauty and Design" and the ambition to play a significant role in providing spiritual solace for the era. Key summaries included: 1) Expected substantial revenue growth: The meeting revealed that LABUBU sold over 100 million units for the full year 2025, and total sales across all categories and IPs exceeded 400 million units. This leads to an expectation of significant revenue growth for 2025. 2) Continued channel expansion: The company's business now covers over 100 countries and regions, with more than 700 global stores. 3) Strengthened supply chain capabilities: POP MART currently operates six major supply chain bases.
The meeting also sketched out strategic visions, focusing on offline operations and creating ultimate in-store experiences. Founder Mr. Wang Ning stated that while science and technology support survival, art and culture give life meaning. He emphasized the importance of dedicating efforts to beauty and design in today's world of great change. Senior executive Wen De Yi mentioned in his speech that the company will pay more attention to operational details, develop more landmark stores, and incubate new businesses in overseas markets.
New products are demonstrating strong performance, suggesting a promising start to the year. Data from third-party databases indicates high GMV growth on the Douyin channel in January. Following the launch of new series, GMV for January and the first week of February showed significant month-on-month growth. Specific product series ranked in the top five for sales on Douyin over a recent 30-day period, forming a multi-IP matrix that provides solid support for New Year performance.
Regarding overseas business, the My Little Pony IP holds considerable influence in North America. A collaborative vinyl figure between Skullpanda and My Little Pony is expected to achieve good sales performance. Reports indicate that POP MART has partnered with U.S. commercial real estate group Simon, planning to add standard retail stores in over 20 Simon and The Mills shopping centers across the United States. Huaxi Securities believes the company's channel expansion is likely to remain at a high level in 2026. Combined with the strong performance of new IPs, this sets the stage for a robust start to the year.
Beyond the潮玩 (toy collectibles) sector, POP MART is making comprehensive布局 across the broader IP field, building the POP MART brand universe. This includes expansions into: 1) POP LAND: The theme park reportedly attracts a significant number of non-local visitors. 2) POP Bakery: The dessert brand has been established in several major Chinese cities, with plans to explore more locations. 3) POPOP: The independent jewelry brand recently opened new stores, with further expansion planned.
Risk warnings include intensifying industry competition, slower-than-expected overseas expansion, and potential setbacks in new business development.