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| HSCEI1 | 8,418.65 | -164.09 | 64.24B |
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2026-03-26 10:17:00 BofAS published a research report indicating that POP MART (09992.HK) did not meet investors' higher expectations for its fiscal year 2025 results, primarily due to revenue falling short of expectations. Revenue for the period increased by 185% year-on-year to RMB370 billion, below the market expectation of approximately RMB400 billion, while the adjusted net profit margin was broadly in line with expectations. Management guided a revenue growth of no less than 20% for 2026, which is below the market expectation of 30%, and hinted that due to a high base in the third quarter, revenue in the second half may record a year-on-year decline. The firm believes that 2026 will be a transition year for POP MART, facing challenges such as the cooling of the Labubu craze in the European and American markets and increasing pressure on profit margins. Therefore, it downgraded POP MART's rating from 'Buy' to 'Neutral', and the target price was lowered from RMB300 to RMB170. BofAS lowered the group's adjusted EPS forecasts for this year and next by 19% and 26%, respectively, to reflect a more conservative growth outlook. The firm currently forecasts that revenue and adjusted net profit after tax for 2026 will grow by 21% and 15%, respectively, incorporating a prudent assumption of a 1.5 percentage point contraction in the adjusted net profit margin. However, the firm remains confident in POP MART's long-term value as a diversified global IP platform, believing that the current adjustments will help digest the growing pains from the rapid expansion over the past two years and prepare for the next stage of development. (hc/w)~ AASTOCKS Financial News URL: www.aastocks.com | |