ET Net News Service, 20th - Pop Mart (09992) is currently down 5%, trading at HK$135.1, with approximately 11.41 million shares traded, involving HK$1.58 billion. The stock reached a high of HK$142.7 and a low of HK$135, hitting a six-month low and marking its fourth consecutive day of decline.
Citigroup released a report on China's consumer sector last week, stating that due to high base effects in the third quarter, investors are focusing on whether Pop Mart can achieve sequential improvement after the base reset. However, the bank expects limited visibility for sequential improvement in Q3, while Q4 may see sequential recovery driven by seasonality and improved organizational capabilities.
The bank forecasts Pop Mart's revenue to decline by approximately 35% year-on-year in Q3, narrowing to a 17% decline in Q4. During the period, the company opened several flagship stores, including in Hangzhou, Chengdu, Changsha, and Paris, supporting its focus on offline experiences and suggesting relative resilience in offline channels. The ramp-up of non-LABUBU IPs such as TWINKLE TWINKLE and Zsiga demonstrates its multi-IP incubation and operational capabilities, though these are insufficient in the short term to offset the high base effects. With recent challenges largely reflected in the stock price, market debate centers on the recovery trajectory post base reset. The bank expects recovery to potentially emerge in 2027, with emerging IPs paving the way for growth.
Currently, the Hang Seng Index stands at 24,000, down 186 points or 0.8%, with turnover on the main board nearing HK$87.3 billion. The Hang Seng China Enterprises Index is at 8,072, down 55 points or 0.7%. The Hang Seng Tech Index is at 4,079, down 28 points or 0.7%. (vs)
Citigroup released a report on China's consumer sector last week, stating that due to high base effects in the third quarter, investors are focusing on whether Pop Mart can achieve sequential improvement after the base reset. However, the bank expects limited visibility for sequential improvement in Q3, while Q4 may see sequential recovery driven by seasonality and improved organizational capabilities.
The bank forecasts Pop Mart's revenue to decline by approximately 35% year-on-year in Q3, narrowing to a 17% decline in Q4. During the period, the company opened several flagship stores, including in Hangzhou, Chengdu, Changsha, and Paris, supporting its focus on offline experiences and suggesting relative resilience in offline channels. The ramp-up of non-LABUBU IPs such as TWINKLE TWINKLE and Zsiga demonstrates its multi-IP incubation and operational capabilities, though these are insufficient in the short term to offset the high base effects. With recent challenges largely reflected in the stock price, market debate centers on the recovery trajectory post base reset. The bank expects recovery to potentially emerge in 2027, with emerging IPs paving the way for growth.
Currently, the Hang Seng Index stands at 24,000, down 186 points or 0.8%, with turnover on the main board nearing HK$87.3 billion. The Hang Seng China Enterprises Index is at 8,072, down 55 points or 0.7%. The Hang Seng Tech Index is at 4,079, down 28 points or 0.7%. (vs)
