Bank of America: Raises the target price for Pop Mart to HKD 236 and increases the earnings per share estimates for this year and next.

On April 24, Jin10 reported that Bank of America Securities released a research report indicating that Pop Mart (09992.HK) exceeded expectations in its first quarter performance, with revenue rising 165% year-on-year to 170%. The overseas market remains the main driving force for growth, with an increase of 475% to 480% in the first quarter. Based on the strong growth outlook, the bank raised its earnings per share forecast for the group by 8% and 10% for this year and next, and raised the target price by 18%, from HKD 200 to HKD 236. Due to the group’s global IP growth trend, it reiterated a “buy” rating. Furthermore, given the higher visibility of the group’s growth during market turbulence, the stock is viewed positively. The bank believes that Pop Mart’s exclusive IP or design and product innovations will continue to gain consumer favor. Recently, the group announced details of the Labubu 3.0 plush toy series, with a price of USD 27.99 in the U.S. market, which is 27% higher than the pricing of the 1.0 and 2.0 series. This price increase further confirms that tariffs have limited impact on the company and that the group has the ability to pass on tariffs. The bank holds a positive view on the new product channels and believes that the new series could elevate its IP popularity to another level, especially in overseas markets.