Morgan Stanley expects POP MART to have room for growth from March to April, rating it as "Overweight."

Morgan Stanley's research report indicates that the stock buyback of POP MART (09992.HK) is an effective catalyst, and the strong popularity of its new IP products Twinkle Twinkle and Skullpanda will continue to drive the operation of its IP products. Considering the investors' holdings, the stock may still have room for growth from March to April.

From a macro perspective, Morgan Stanley believes that POP MART will see more surprises in product design this year, and the collaboration between its IP products Labubu and Moynat, along with reports that a Labubu movie will be produced by Sony Pictures, plus the addition of the CEO of LVMH China to the company's board, shows that POP MART's cultural influence is increasingly recognized by top industry leaders. They believe the company has secured more effective marketing resources for its upcoming new products, which is crucial for enhancing the popularity of its IP.

According to market feedback from Morgan Stanley, some investors believe that the company's stock buyback has not changed its pessimistic outlook, with considerations including U.S. credit card data, resale prices, and social media attention. Therefore, it is believed that short positions may remain high before the company releases its financial report in late March.

Morgan Stanley sets a target price of 325 yuan for POP MART, based on a projected 26 times price-to-earnings ratio for 2026; rating "Overweight"; they believe that with sustained sales momentum in both China and overseas markets, along with good product line expansion and new IP-centered initiatives, a valuation reassessment may be on the horizon. Compared to large global consumer companies, the group's profit growth is expected to be significantly higher