Huatai Securities: POP MART's performance growth sustainability is underestimated, maintaining a buy rating

Huatai Securities research report indicates that recent market expectations for POP MART (09992.HK) have been significantly influenced by short-term high-frequency tracking data, leading to increased concerns about the sustainability of IP popularity and performance growth. The tracked data shows that the company's domestic and overseas performance in the fourth quarter of last year exhibited high resilience, and after experiencing a sales peak with Labubu 3.0, the strength of the IP matrix provided solid support for sales growth.

On January 19, the company repurchased 1.4 million shares for HKD 251 million, with a repurchase price per share ranging from HKD 177.7 to HKD 181.2, reflecting the company's confidence in its growth prospects. The firm believes that the sustainability of POP MART's performance growth and its medium to long-term potential are undervalued, and that the current valuation is attractive during this phase of market divergence, maintaining a "Buy" rating and continuing to recommend it, with a target price of HKD 410