"Big Banks" Bank of America Securities: POP MART has multiple growth drivers this year, maintaining a "Buy" rating with a target of 300 yuan

Bank of America Securities published a research report indicating that a channel survey on POP MART (09992.HK) shows that the group has multiple growth drivers this year, and it still predicts that the group's growth will exceed 30% this year; it believes that the market consensus on the group's revenue and adjusted net profit has limited downside risk, as the significant stock price correction and valuation downgrade have reflected the market's lower expectations for its performance.

Bank of America Securities expects that by the time of the performance announcement in March, the group's visibility will improve, potentially triggering a revaluation. It maintains the group's earnings per share forecasts for 2025 and 2026 (RMB 9.8 and RMB 13.9) and a "Buy" rating, with a target price of HKD 300.

Looking ahead to 2026, Bank of America Securities believes that POP MART has several growth drivers, including significant upside potential for existing IPs, such as further monetization of the Monsters series, promoting the globalization of IPs like Skullpanda/Hirono, and launching new variants of popular IPs (like Molly). Additionally, the launch of new IPs may get back on track this year, including local IPs targeting overseas markets.

The firm also stated that with POP MART's global recognition last year, it expects to establish strategic partnerships and collaborative projects with more well-known global consumer brands; it anticipates that with channel expansion and deeper IP operations, sales growth in other regions of Asia, the United States, and Europe will surpass that of China, thus the overseas market's sales proportion is expected to exceed 50%