Market Insight | POP MART Soars Over 3%, Institutions Expect Sales to Increase by Over 60% in the Third Quarter, Overseas Store Expansion Speed to Accelerate

POP MART rose by more than 3%, as of the time of publication, it rose by 2.71% to HKD 57.05, with a turnover of HKD 3.36 billion. On the news front, in the first half of this year, POP MART achieved a revenue of HKD 4.56 billion, a year-on-year increase of 62%; the net profit attributable to the parent company was HKD 920 million, a year-on-year increase of 93.3%. Huatai Securities believes that POP MART's performance growth mainly relies on four aspects: first, expanding channels outside the Chinese market; second, optimizing store locations, areas, and display routes to improve average store efficiency; third, innovating in trendy toy categories and diversifying monetization to broaden sources of income; fourth, refined operations and economies of scale driving profit improvement. Morgan Stanley's research report pointed out that POP MART is expected to achieve sales growth of over 60% in the third quarter, with the productivity of its overseas stores increasing in July and August compared to the previous quarter, driven by summer traffic and replenishment of popular products, and the speed of opening stores in mainland China and overseas should accelerate from the third quarter onwards