Lyon: POP MART (09992) accelerates growth in the third quarter, maintains "outperforming the market" rating.

Lyon released a research report stating that POP MART (09992) had a year-on-year revenue growth of 245% to 250% in the third quarter of this year, further accelerating from the growth rates of 204% in the first half of the year and 170% in the first quarter. The bank still sees POP MART as a good IP platform, with potential for expansion into areas such as jewelry and building blocks. Emerging IPs like Twinkle Twinkle and Peach Riot are also on the rise, and the company is trying to develop diversified content such as animation. Therefore, the bank maintains a "outperform" rating with a target price of 368 Hong Kong dollars. In terms of regions, the growth in the Chinese market accelerated from 135% in the first half of the year to 185% to 190% in the third quarter, believed to be due to improvements in supply. The development of overseas markets is gradually normalizing, with growth slowing from 440% in the first half of the year to 365% to 370% in the third quarter. Sales in Europe and America are still strong, with growth rates of 735% to 740% and 1,265% to 1,270%, respectively. Lyon pointed out that although LABUBU's trend in Google searches is returning to normal, it still performs similarly to some evergreen IPs. It is expected that the strong performance in the Chinese market is mainly driven by online sales channels.