Pop Mart surges on bullish JP Morgan coverage

Shares of Chinese toy titan Pop Mart International (9992) surged as much as 6 percent to a record high of HK$234.60 on Tuesday, following a bullish analyst note from JPMorgan.

JPMorgan last week initiated coverage on Pop Mart for the first time with an “overweight” rating and a price target of HK$250. The bank highlighted the company’s original character Labubu as an emerging super IP, and forecast a 152 percent year-on-year increase in overseas sales this year.

The stock has soared more than 160 percent year-to-date.

Created by Hong Kong-born artist Lung Ka-sing, Labubu’s explosive global popularity last year helped accelerate Pop Mart’s international expansion. In 2024, the company posted revenue of 13.04 billion yuan (HK$14.19 billion), a 106.9 percent increase from the previous year. Overseas markets – including Hong Kong, Macau, and Taiwan – contributed 5.07 billion yuan, up 375.2 percent year-on-year, and accounted for nearly 40 percent of total sales.

JPMorgan expects sales of The Monsters series, which features Labubu, to grow from 3 billion yuan in 2024 to 14 billion yuan by 2027. Overseas sales are projected to rise 152 percent year-on-year in 2024, with a compound annual growth rate of 42 percent through 2027, ultimately accounting for 65 percent of total sales that year.

STAFF REPORTER