Jin10 data reported on March 27 that Citibank published a research report indicating that Pop Mart (09992.HK) management expects operating revenue to rise by more than 50% year-on-year to exceed 20 billion RMB by 2025. The operational guidance is higher than the bank's and market expectations, mainly due to a more optimistic outlook for overseas business growth. Management also expects an increase in the proportion of overseas sales and Supply Chain optimization to drive a continued rise in gross profit margin in 2025, while the net profit margin is expected to remain flat or slightly rise. Based on a lower base and strong sales of products related to Nezha, Pop Mart predicts that revenue will rise by more than double year-on-year in the first quarter of this year. Based on better sales prospects and profit margin conditions, Citibank has raised Pop Mart's earnings forecast for this year and next by 24% and 28%, respectively, increasing the target price from 120 HKD to 162 HKD, with a rating of "Buy".
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Citi: Pop Mart's operating guidance is strong this year, target price raised to HKD 162.
Jin10 data reported on March 27 that Citibank published a research report indicating that Pop Mart (09992.HK) management expects operating revenue to rise by more than 50% year-on-year to exceed 20 billion RMB by 2025. The operational guidance is higher than the bank's and market expectations, mainly due to a more optimistic outlook for overseas business growth. Management also expects an increase in the proportion of overseas sales and Supply Chain optimization to drive a continued rise in gross profit margin in 2025, while the net profit margin is expected to remain flat or slightly rise. Based on a lower base and strong sales of products related to Nezha, Pop Mart predicts that revenue will rise by more than double year-on-year in the first quarter of this year. Based on better sales prospects and profit margin conditions, Citibank has raised Pop Mart's earnings forecast for this year and next by 24% and 28%, respectively, increasing the target price from 120 HKD to 162 HKD, with a rating of "Buy".