Morgan Stanley: Raises Bubble Mart target price to 273 HKD, the highest bull.

Golden Ten Data reported on May 15 that Morgan Stanley raised Bubble Mart (09992. HK) raised its target price by 9.8% to HK$224, with a forecast price-to-earnings ratio of about 40 times this year and 30 times next year, the most bullish target price was raised by 12.3% to HK$273, and the most bearish target price was also raised by 14.1% to HK$97, reiterating “overweight”. Da Mo explained that (1) the strong global demand for Labubu 3.0, especially in the U.S. market, believes that the momentum can promote the opening of new stores in the U.S. and other regions, which will become the main growth driver this year and next, and the strong sales growth can further increase the operating profit leverage. (2) Pop Mart’s Vietnamese supply chain was quickly set up and performed well, surprising the bank, with most of the goods exported to the US being shipped from Vietnam in the third quarter of this year, and the cooling of Sino-US trade relations, the impact of tariffs on profit margins is expected to be lower than market estimates. (3) The 12% to 27% price increase for new products in the U.S. appears to be acceptable to consumers, and as the impact of tariffs fades, higher average prices could improve margins in the U.S. business in the long run.