Pop Mart's Medium-Term Potential Still Sound on Strengthening IP Portfolio

Dow Jones08-21

0734 GMT - Pop Mart International still has sound medium-term potential, given its strengthening intellectual-property portfolio, says DBS Group Research in commentary. The company's healthier operations is evident in its IP portfolio, the analysts say, citing a lower proportion of revenue from the Monsters collection--which includes Labubu--even as six IPs' 1H sales exceeded 1 billion yuan each. The board's 2 billion yuan-5 billion yuan share buyback program over the next six months also signals conviction in long-term value creation, they say. Still, DBS cuts its 2026-2027 earnings per share estimates by 12%-17% to factor in the 1H earnings. DBS lowers its target price to 195.00 Hong Kong dollars from HK$247.00 but maintains a buy rating. Shares decline 3.2% to HK$148.80.

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