Citigroup has elevated its profit projections for Pop Mart (09992) by 43.6%, 41.4%, and 41.8% for 2025 through 2027, forecasting a 156% year-on-year revenue surge this year. Overseas markets are anticipated to skyrocket 289% while domestic sales climb 71%, with North American and European expansions remaining pivotal growth engines. The firm reaffirmed its "Buy" rating and lifted the target price to HK$384.5 from HK$308, citing attractive valuations after recent share adjustments.
Pop Mart's July 15 profit alert revealed staggering interim results: revenue vaulted over 200% year-on-year with profit swelling at least 350%. Citigroup estimates net profit exceeding 4.17 billion yuan and revenue surpassing 13.7 billion yuan, outstripping both the bank's and market expectations. Surging global recognition of IPs like LABUBU propelled second-quarter performance beyond forecasts. Despite elevated comparables, the momentum is expected to persist through 2024's second half, driven by enduring IP popularity, overseas penetration, inventory replenishment initiatives, and novel product launches.
