Bank of America Securities reiterates POP MART rating as "Neutral," expects market sentiment to have stabilized

Bank of America Securities published a research report stating that POP MART (09992.HK) has experienced recent stock price fluctuations, but market sentiment has stabilized, benefiting from capital inflows, a shift in market risk appetite towards new consumption, positive sentiment changes triggered by influential investor activities, resilient local market sales trends, and company buybacks. However, investors remain concerned about two major risks: limited visibility in overseas markets (especially with the growth momentum in the U.S. and European markets weakening at the end of last year) and margin pressure from slowing overseas growth, rising raw material, and freight costs.

The firm stated that the group will release its operational update for the first quarter of this year in mid-May. During this period, revenue is expected to grow approximately 80% year-on-year, exceeding market expectations of 50% to 100%. The main difference lies in the performance of overseas markets, particularly the U.S. and the European Union, while the mainland China market is expected to remain resilient. The "Neutral" rating is reiterated, with a target price of HKD 170, corresponding to a projected price-to-earnings ratio of about 13 times for 2026