Morgan Stanley: Expecting POP MART (09992) to have further upside potential from March to April, rating it as "Overweight"

Morgan Stanley's research report states that the target price for POP MART (09992) is 325 Hong Kong dollars, based on a projected price-to-earnings ratio of 26 times in 2026; rating it as "hold". It believes that with continued sales momentum in the Chinese and overseas markets, as well as good product line expansion and new initiatives centered around intellectual property (IP), there may be a revaluation of the company. Compared to global large consumer companies, the group's profit growth is expected to be significantly higher. Morgan Stanley believes that the stock buyback by POP MART is an effective catalyst, and the strong popularity of its new IP products Twinkle Twinkle and Skullpanda will continue to drive its IP product rotation. Considering investors' positions, the stock may still have room for growth in March and April. On a macro level, Morgan Stanley believes that POP MART will bring more surprises in product design this year, and collaborations with the group's IP products Labubu and Moynat, as well as reports that a Labubu movie will be produced by Sony Pictures, along with the addition of LVMH's China CEO to the company's board of directors, show that POP MART's cultural influence is increasingly recognized by top industry leaders. The company is believed to have secured more effective marketing resources for its upcoming products, which is crucial for increasing the popularity of its IP. According to market feedback from Morgan Stanley, some investors believe that the company's stock buyback has not changed its pessimistic outlook, citing considerations such as US credit card data, resale prices, and social media attention. Therefore, short positions may continue to remain high until the company releases its financial report in late March.