Citigroup has released a research report predicting that POP MART's IP-centric diversification strategy will enhance its ability to withstand cyclical risks associated with individual intellectual properties and revitalize new demand. The bank's weekly data tracking indicates a recent upward trend in app downloads, particularly in China and the United States, which is believed to be primarily driven by the launch of the new Skullpanda x My Little Pony series. Citigroup also observed high consumer interest in the new series on Instagram. The firm has assigned a "Buy" rating to POP MART with a target price of HK$415, based on a projected 2026 price-to-earnings ratio of 28 times.

Looking ahead to 2026, Citigroup forecasts that breakthroughs in IP diversification, product innovation, and monetization across a broad range of areas will drive the group's growth. Investor confidence is expected to strengthen with the launch of the next hit IP and the growing popularity of non-Labubu IPs in overseas markets. POP MART is cited as one of Citigroup's top buy recommendations within the China consumer sector.

The report mentions that the group's other iconic IP products, such as SKULLPANDA, TWINKLE TWINKLE, and CRYBABY, are becoming new growth drivers, each with their own fan bases, and are not merely serving as replacements for the Labubu IP. Non-Labubu IPs are predicted to have upside potential this year. Recent global consumer survey results also suggest that interest in non-Labubu IPs in overseas markets may be underestimated.

Furthermore, discussions among investors regarding the sustainability of POP MART's growth are currently focused on the U.S. market. The vast potential market size overseas, combined with upgrades to the global organizational structure, localized operations, and a strengthened supply chain, are expected to propel the company's global expansion this year and beyond.

The group trades at a premium compared to most global toy and IP peers, which may be attributed to its rapid growth driven by overseas expansion. Compared to domestic peers, Citigroup also believes POP MART deserves a premium valuation due to its leading market position.