With the accelerated development of $POP MART(09992)$ overseas market, its overseas revenue has already matched the company's total revenue in 2019, achieving the goal set by the brand's founder and CEO Wang Ning to "recreate Pop Mart overseas."
Bank of America expects Pop Mart's revenue and net profit to grow at an average annual rate of 56% and 84%, respectively, from 2023 to 2026. By 2026, Pop Mart's overseas business revenue is expected to account for 55%, while in the first half of 2024, overseas business will account for only 30%. During this period, Pop Mart expects a significant improvement in profit margins, which could act as a catalyst for stock price growth.
Morgan Stanley believes that recent visits to first-tier cities in China show clear signs of recovery and stabilization in the domestic investment and consumer markets. "New consumption" sectors, such as IP retail, jewelry, and new tea drinks, are gaining more favor. Pop Mart's Q4 sales in FY2024 are expected to grow by about 135% year-on-year, and its total sales for FY2024 are expected to double, with Q1 sales in FY2025 possibly increasing by more than 100%.
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