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<Research> BOCOM International Cuts POP MART (09992.HK) TP to HKD218.9, Lowers Earnings Forecast
Recommend 6 Positive 15 Negative 6 |
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BOCOM International issued a report stating that POP MART (09992.HK) delivered strong growth in the China market in the first quarter, while growth in overseas markets slowed. Overall revenue in the first quarter rose 75-80% YoY. Among them, the China market grew 100-105% YoY, while overseas growth decelerated as expected. Considering rising raw material and transportation costs as well as slower overseas growth, the broker lowered its earnings forecasts for 2026-2028 and cut the TP to HKD218.9. Despite the TP reduction, the companys core growth logic of global expansion and IP platform-based operations remains unchanged. The current valuation implies a 2026 price-to-earnings ratio of about 14x, offering a relatively high margin of safety. Therefore, the broker maintained a Buy rating. The report cited management as saying that, affected by rising prices of relevant raw materials and transportation expenses, higher tariffs and changes in market structure, gross margin is expected to decline by 1-2 ppts in 2026. The company will offset cost pressures through supply chain optimization and stringent expense control, and full-year net margin is expected to decline only slightly YoY. Based on more prudent overseas revenue forecasts and margin assumptions, the broker lowered its 2026-2028 net profit forecasts by 9-19%. (ha/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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