Morgan Stanley expects the impact of tariffs on POP MART to be relatively low, rating it as "Overweight."

Morgan Stanley published a research report stating that, considering the progress of Sino-U.S. trade negotiations this year, the impact on POP MART (09992.HK) is expected to be low. The bank pointed out that about 75% to 80% of toy imports to the United States come from China, and if these toys are subjected to higher tariffs, it should not change the company's relative advantage.

Additionally, POP MART originally planned to shift the majority of its U.S. products' production to Vietnam, but this plan has been delayed due to the easing of trade tensions. The bank believes that Vietnam's efficiency lags behind that of China, and once the plan is implemented, the company will need 4 to 6 months to relocate its supply chain.

The United States announced a tariff of about 130% on Chinese toys starting November 1. The bank assumes that, without price adjustments from POP MART, the impact on its earnings this year will be about 1%. The bank set a target price of 382 yuan for the company, rating it as "overweight," and it is the industry's preferred stock