Citigroup has released a research report stating that it expects breakthroughs by POP MART (09992) in IP diversification, product innovation, and monetization across multiple areas to support sustained growth through 2026. The bank has set a target price of HK$415 and a "Buy" rating, continuing to list it as a top pick in the Chinese consumer sector. The bank conducted a questionnaire survey among approximately 1,500 POP MART consumers in China, Japan, the US, the UK, and Australia. The results indicate that POP MART's customer base is continuously expanding, with 76% of respondents making their first purchase of a POP MART product within the past year; notably, 45% of these were new customers acquired within the last three months or even less. Only 9% of respondents stated they would purchase from secondary platforms. A significant 87% of respondents indicated they are "likely" or "very likely" to purchase POP MART products in the next three months; new product series, limited editions, and seasonal releases were cited as key factors driving future purchases. Furthermore, gift-giving, collecting, and personal interest were the primary reasons for purchasing POP MART products among respondents, followed by emotional satisfaction and trend-following. Character design, emotional connection, and the rarity and uniqueness of products were the most valued attributes by respondents. The survey revealed that the top five most popular IP products are LABUBU (47%), Twinkle Twinkle (27%), Skullpanda (25%), Crybaby (23%), and Molly (22%). The bank believes that interest in non-LABUBU IPs in overseas markets may be underestimated, particularly noting that the ownership rate of Twinkle Twinkle in the United States exceeded its expectations.
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