Core Viewpoint - Pop Mart is rapidly expanding its influence in the global trend culture landscape, particularly in Australia, which is a key market in its globalization strategy [1] Group 1: Market Expansion - Since entering Australia in 2021, Pop Mart has adopted an omnichannel model, including offline stores, robot shops, and e-commerce, establishing 9 offline stores and 16 robot shops by April 2024 [2] - The recent opening of the largest store in Australia at Westfield Mt Gravatt in Brisbane features a "Fairy Forest" theme, combining local natural elements with trendy art, attracting significant local attention [2] - Brisbane, as the host city for the 2032 Summer Olympics, presents dual benefits of infrastructure and consumption upgrades, making it a strategic location for Pop Mart's expansion [2] Group 2: Localization Strategy - Pop Mart emphasizes a localization strategy, launching limited products that incorporate local elements, such as the Brisbane-exclusive ZIMOMO Sunny [3] - The brand engages with consumers through pop-up stores and artist signing events, enhancing emotional connections with the audience [3] - Social media marketing is actively utilized, encouraging user-generated content and leveraging KOLs to boost brand awareness [3] Group 3: Financial Performance - In 2023, Pop Mart's overseas business revenue reached 1.066 billion yuan, a year-on-year increase of 134.8%, marking it as the fastest-growing segment of the company [3] - By the end of 2023, Pop Mart had 80 overseas stores across 25 countries and regions, with plans to add 50-60 more stores in 2024, increasing the total to 130-140 [3] Group 4: Cultural Value and Future Outlook - The success of Pop Mart lies in its innovative business model and deep engagement with cultural values, creating a new path for "cultural export" [4] - Store locations are strategically chosen in core business districts, enhancing the local commercial ecosystem [4] - With ongoing international expansion, Pop Mart is poised to lead the global trend toy industry into a new growth cycle, with Australia as a crucial part of its global strategy [4]

Core Insights - The article highlights the impressive financial performance of Pop Mart, with a revenue of 13.038 billion RMB, a year-on-year increase of 106.9%, and a net profit of 3.308 billion RMB, up 203.9% [1] - The company has successfully expanded its global presence, particularly in Southeast Asia and North America, achieving significant revenue growth in these regions [3][4] Group 1: Financial Performance - Pop Mart's total revenue reached 13.038 billion RMB, marking a 106.9% increase year-on-year [1] - The net profit for the company was 3.308 billion RMB, reflecting a remarkable growth of 203.9% [1] - The stock price surged over 10% on the day of the earnings release, indicating a positive market reaction [1] Group 2: Global Expansion - Revenue from Hong Kong, Macau, Taiwan, and overseas markets amounted to 5.066 billion RMB, a staggering increase of 375.2%, accounting for 38.9% of total revenue [3] - Southeast Asia contributed 2.4 billion RMB, with a year-on-year growth of 619.1%, becoming the fastest-growing overseas segment [3] - North America generated 720 million RMB, up 556.9%, and is identified as a key focus area for future growth [3][4] Group 3: IP Strategy - Pop Mart has established a robust IP ecosystem, with 13 IPs generating over 100 million RMB in revenue, and four IPs exceeding 1 billion RMB [6][7] - The company employs a "cultural symbiosis" strategy, connecting with local cultures to enhance its IP's appeal [4][5] - The successful launch of LABUBU as a global IP demonstrates the effectiveness of Pop Mart's IP management and marketing strategies [8] Group 4: Market Positioning - Pop Mart's approach to market entry includes using pop-up stores and robot stores to minimize risks before establishing flagship stores [4][5] - The company strategically selects high-traffic locations for flagship stores to maximize brand visibility and attract diverse consumer segments [5] - The expansion into various product categories has allowed Pop Mart to create a comprehensive IP consumption ecosystem that appeals to all age groups [12]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5]. Core Insights - The company reported a significant increase in revenue and profit for 2024, with total revenue reaching 13.038 billion yuan, a year-on-year increase of 106.9%, and a net profit of 3.308 billion yuan, up 203.9% [1]. - The second half of 2024 saw even stronger performance, with revenue of 8.480 billion yuan, a year-on-year increase of 143.2%, and a net profit of 2.344 billion yuan, up 283.3% [1]. - The company's gross margin improved significantly, with a gross margin of 66.79% for 2024, an increase of 5.46 percentage points year-on-year [3]. Revenue Breakdown - Revenue from mainland China was 7.972 billion yuan, a year-on-year increase of 52.3%, accounting for 61.1% of total revenue [2]. - Revenue from Hong Kong, Macau, Taiwan, and overseas markets reached 5.066 billion yuan, a year-on-year increase of 375.2%, accounting for 38.9% of total revenue [2]. - The company's self-owned IP products generated 12.722 billion yuan in revenue, a year-on-year increase of 117.2%, representing 97.6% of total revenue [2]. Product and IP Performance - The company's artist IP, THEMONSTERS, generated 3.041 billion yuan in revenue, a year-on-year increase of 726.6% [4]. - The plush toy segment saw remarkable growth, with revenue of 2.832 billion yuan, a year-on-year increase of 1289.04% [2]. - The company successfully expanded its retail presence, adding 38 offline stores and 110 robot stores in mainland China [4]. Future Projections - Revenue projections for 2025-2027 are estimated at 21 billion yuan, 28.9 billion yuan, and 39.8 billion yuan, representing year-on-year growth of 61.0%, 37.6%, and 38.0% respectively [5]. - Adjusted net profit projections for the same period are 5.917 billion yuan, 7.815 billion yuan, and 10.189 billion yuan, with year-on-year growth of 73.9%, 32.1%, and 30.4% respectively [5].

Core Insights - 2024 marks a significant year for Pop Mart, achieving a revenue of 13.04 billion yuan, a year-on-year increase of 106.9%, and an adjusted net profit of 3.4 billion yuan, up 185.9% [1] - The company aims to reach a revenue of 20 billion yuan in 2025, targeting over 50% year-on-year growth, with overseas business expected to exceed 10 billion yuan, achieving over 100% growth [1][5] Revenue Breakdown - Domestic revenue reached 7.97 billion yuan, a 52.3% increase, while overseas and Hong Kong, Macau, and Taiwan revenue was 5.07 billion yuan, growing 375.2%, accounting for 38.9% of total revenue [1] - Southeast Asia emerged as the highest revenue region with 2.4 billion yuan, representing 47.4% of overseas revenue and a staggering growth of 619.1% [2] IP Performance - LABUBU became a standout IP, generating 3 billion yuan in revenue, contributing over 20% to total revenue, and surpassing the previous leading IP, MOLLY [3] - MOLLY generated 2.09 billion yuan, up 105.2%, while SKULLPANDA reached 1.31 billion yuan, a 27.7% increase [3] Product Category Expansion - The company diversified its product categories, with figures showing 6.94 billion yuan from figurines, a 44.7% increase, while plush toys saw explosive growth at 2.83 billion yuan, up 1289% [4] Future Plans - Pop Mart plans to open approximately 100 new stores overseas, focusing on key urban locations and transportation hubs, with significant expansions planned in the US, Australia, France, Singapore, and Japan [2][5] - The company aims to enhance its brand presence and consumer experience, moving towards a more culturally enriched IP consumption experience [5]

Core Insights - The article discusses the success and strategic insights of Pop Mart, a leading player in China's trendy toy industry, which has achieved over 10 billion in revenue and a market capitalization exceeding 100 billion [1][4]. Group 1: Strategic Vision - The strategic vision of the CEO, Wang Ning, is highlighted as a key factor in Pop Mart's success, particularly in seizing the opportunity in the cultural consumption sector as China's GDP per capita surpassed 10,000 USD in 2019 [4]. - Pop Mart's entry into the trendy toy market was well-timed, positioning the company to capitalize on the industry's growth [4]. Group 2: Retail Strategy - Pop Mart has maintained a strong focus on offline retail, opting not to enter the competitive online market initially, which has allowed it to build a solid brand through interactive experiences [5]. - The company has redefined its offline store model, using stores not just for sales but as platforms for deep customer engagement and community building [5]. Group 3: Digital Capabilities - Pop Mart has developed robust digital capabilities, integrating data from various channels, which has enhanced its operational efficiency and decision-making [6]. - The company has optimized its supply chain, reducing inventory cycles from 156 days to 133 days, and improved sales forecasting accuracy to over 50% [6]. Group 4: Consumer Insights - The establishment of a Consumer & Market Intelligence (CMI) team has enabled Pop Mart to conduct over 50 research projects annually, providing valuable insights into consumer behavior and market trends [7]. - This data-driven approach has led to a high success rate in launching new IPs, with over 70% of sales coming from self-developed IPs [7]. Group 5: Membership System - Pop Mart has implemented an integrated membership system that allows for seamless identification and rewards across platforms, contributing to 90% of annual sales and a 50% repurchase rate [8]. - The company's focus on membership highlights the importance of customer loyalty and digital engagement in driving stable revenue streams [8].

Core Viewpoint - Pop Mart has experienced a dramatic recovery, achieving a market capitalization of over 200 billion HKD by the end of 2024, following a significant drop in valuation in 2022. The company has demonstrated a "U-shaped curve" in its market performance, moving from peak to trough and back again [1][9]. Financial Performance - In 2024, Pop Mart reported revenue of 13.04 billion RMB, a year-on-year increase of 106.9%, and an adjusted net profit of 3.40 billion RMB, up 185.9% [2][4][6]. - The gross profit rose from 3.86 billion RMB in 2023 to 8.71 billion RMB in 2024, marking a 125.4% increase, with a gross margin of 66.8%, up 8 percentage points from the previous year [4][6][7]. Market Dynamics - The growth in Pop Mart's revenue is significantly attributed to its overseas markets, with international and Hong Kong-Macau revenue reaching 5.07 billion RMB, a staggering 375.2% increase year-on-year, accounting for 38.9% of total revenue [10][11]. - The Southeast Asian market has been particularly successful, generating 2.4 billion RMB, a 619.1% increase, and representing 47.4% of the international revenue [10][11]. Competitive Landscape - The collectible toy market is becoming increasingly competitive, with new entrants like TOP TOY and 52TOYS, and existing players like Blok and others intensifying the competition [3][16]. - Pop Mart's market share is relatively small, holding only 8.5% of the market, with the top five companies in the sector accounting for less than 25% of the market [16]. IP Strategy - Pop Mart's core competitive advantage lies in its proprietary IPs, which generated 11.12 billion RMB in revenue, a 130.6% increase, making up 85.3% of total revenue [7][8]. - The company has diversified its product offerings beyond blind boxes, launching new brands and product lines, including jewelry and themed parks, to enhance its market presence [7][8]. Challenges Ahead - Despite the impressive growth, Pop Mart faces challenges in maintaining customer loyalty, as evidenced by a decline in member repurchase rates from 58% in 2019 to 49.4% in 2024 [17]. - The company must navigate the complexities of entering mature markets like North America and Europe, where competition is fierce and consumer preferences differ significantly from those in Asia [13][14].

Summary of Pop Mart International Group Conference Call Company Overview - **Company**: Pop Mart International Group - **Founded**: 2010 - **Listed**: December 2020 on the Hong Kong stock exchange - **Industry**: Art toy culture in China - **Key IPs**: Molly, Dimoo, Skullpanda - **Store Count**: 363 retail stores and 2,190 roboshops in mainland China; 70 retail stores and 99 roboshops outside mainland China as of end-2023 [doc id='13'][doc id='13']. Financial Performance - **2024 Revenues**: Rmb 13 billion, up 107% YoY - **2024 Net Profit**: Rmb 3.1 billion, up 189% YoY - **H2 2024 Performance**: Revenues of Rmb 8,480 million (up 143% YoY) and net profit of Rmb 2,204 million (up 264% YoY), beating expectations by 8% and 11% respectively [doc id='2'][doc id='2']. - **Domestic Revenue**: Rmb 4,766 million in H2 2024, 70.4% YoY growth, exceeding expectations by 10% due to higher-than-expected same-store sales growth (SSSG) [doc id='2'][doc id='2']. - **Overseas Revenue**: Grew 438% YoY to Rmb 3,714 million in H2 2024, accelerating from 260% YoY growth in H1 2024, beating estimates by 6% [doc id='2'][doc id='2']. Growth Strategy - **US Market Focus**: Management is optimistic about US business expansion, expecting over 100% YoY growth in Q1 2025. The US market has shown strong momentum, with Q1 2025 revenue already matching full-year figures for 2024 [doc id='3'][doc id='3']. - **Store Expansion**: Plans to open over 10 new retail stores domestically and around 100 stores internationally in 2025, focusing on larger stores in prime locations such as city landmarks and airports [doc id='3'][doc id='3']. - **New Initiatives**: Plans to release animated short films featuring its IPs to enhance customer loyalty and attract new customers [doc id='3'][doc id='3']. Financial Guidance - **2025 Revenue Guidance**: Expected to exceed Rmb 20 billion, implying over 50% YoY growth. Overseas revenue is projected to reach over Rmb 10 billion, with around 100% YoY growth [doc id='4'][doc id='4']. - **Gross Profit Margin (GPM)**: Expected to increase YoY in 2025 due to growing overseas business with a higher GPM. Net Profit Margin (NPM) is expected to remain flat or slightly increase [doc id='4'][doc id='4']. Valuation and Investment Outlook - **Price Target**: Revised to HK$ 188.7 from HK$ 165.2, reflecting a 9-10% increase in 2025-2026 adjusted net income forecast due to stronger sales expectations [doc id='5'][doc id='5']. - **Current Price**: HK$ 140.70 as of March 26, 2025, with a market cap of HK$ 189 billion (approximately US$ 24.3 billion) [doc id='7'][doc id='7']. - **Investment Rating**: Reiterated as "Buy" based on strong growth prospects and market positioning [doc id='7'][doc id='7']. Risks and Challenges - **Industry Risks**: Potential slowdown in China's economy affecting consumer spending on pop toys, increased competition from internet firms, and regulatory scrutiny due to the blind box format [doc id='14'][doc id='14']. - **Company-Specific Risks**: Challenges in attracting and retaining consumers with new IPs, pressure in expanding into lower-tier cities, and profitability concerns due to investments in new initiatives [doc id='15'][doc id='15']. Conclusion Pop Mart International Group is positioned for significant growth, particularly in the US market, with strong financial performance and ambitious expansion plans. However, it faces industry and company-specific risks that could impact its future performance.

（文/朱道义 编辑/张广凯） 拿出100亿储备资金，名创优品为旗下TOP TOY备足弹药，想要在潮玩赛道做一个规则改变者。 3月22日，TOP TOY首家全球旗舰店在上海顶级商圈之一的南京东路步行街正式开业。而在当天下午的品牌战略升级发布会上，TOP TOY还宣布了一项颇为 激进的扩张计划，目标未来五年在全球100个核心商圈范围内，开出超过1000家店。 作为对比，泡泡玛特目前全球门店数量为531家，并计划2025年在海外开店100家。 但TOP TOY真正想做的不只是开店，更是要改变整个潮玩市场的供需结构。 TOP TOY创始人兼CEO孙元文对观察者网指出，尽管潮玩市场时下极度火爆，但黄牛才是潮玩行业最大的客户，而不是真正的消费者，黄牛甚至潮玩公司 自己通过控制货盘来制造稀缺性，让潮玩变成了"年轻人的电子茅台"。 图 | 孙元文 "你说我们要学习这种发售方式吗？我们也可以，比如拿一个亿出来在二级市场疯狂收购隐藏款。但这样做会被行业骂死。我们不想走这条路。"孙元文斩钉 截铁地指出。 不做奢侈品公司，而是回归消费公司的本质，这是TOP TOY想给市场带来的最大改变。 一年房租1300 万，"我们终于有实力了" ...

Core Viewpoint - Pop Mart's financial performance for 2024 exceeded expectations, with significant revenue growth and improved profit margins [1][2] Financial Performance - Pop Mart reported a revenue increase of 106.9% year-on-year, with a gross margin of 66.8% and a net profit margin of 25.4% [1] - The company maintained a dividend payout ratio of 35%, consistent with 2023 [1] Market Performance - Revenue from the mainland China market grew by 52.3%, with offline channel revenue increasing by 41% and online channel revenue rising by 77% [1] - The overseas market saw a substantial increase of 375.2%, with Southeast Asia and North America experiencing growth rates of 600% and 500%, respectively [1] Regional Breakdown - According to Dongxing Securities, revenue from different regions showed significant growth: Southeast Asia (24.0 million), East Asia (13.9 million), Hong Kong, Macau, and Taiwan (7.2 million), and North America (5.5 million), with year-on-year increases of 619%, 185%, 557%, and 311% respectively [2] - The company has established a strong revenue base in Asia and is making initial inroads into the European and American markets, indicating substantial growth potential [2] Strategic Focus - The company is expected to focus on expanding its presence in the North American market, leveraging store openings and localizing IP to enhance local influence [2] - The overseas business has begun to show economies of scale, with gross margins increasing by 8.3 percentage points to 71.3% [2]

Investment Rating - The report maintains a "Buy" rating for the company [3][8]. Core Insights - The company is positioned as a leader in the global trendy toy market, driven by a strong brand rather than supply chain advantages. Its revenue and profit growth are attributed to multiple IPs, categories, and regions exceeding expectations [8]. - The IP matrix is expanding, with four IPs expected to generate over 1 billion in revenue in 2024, and significant growth in established and new IPs [8]. - The company's overseas expansion is gaining momentum, particularly in Southeast Asia and North America, with plans to open 100 stores in the year [8]. - The product category expansion continues, with non-blind box products expected to account for 47% of sales in 2024, enhancing the IP's lifecycle and monetization potential [8]. - Membership operations are highlighted, with a significant increase in registered members and store count, indicating strong customer engagement [8]. - The profit forecast has been revised upwards, with expected revenues and net profits for 2025 to 2027 being significantly higher than previous estimates [8]. Financial Data and Profit Forecast - Revenue projections for 2023 to 2027 are as follows: 6,301 million, 13,038 million, 21,107 million, 25,929 million, and 29,709 million respectively, with growth rates of 36%, 107%, 62%, 23%, and 15% [7][9]. - Non-IFRS net profit forecasts are 1,184 million, 3,220 million, 5,992 million, 7,820 million, and 8,980 million for the same years, with growth rates of 107%, 172%, 86%, 31%, and 15% [7][9]. - The company’s return on equity is projected to be 15.2%, 29.6%, 35.1%, 31.1%, and 26.1% from 2023 to 2027 [7].