Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>UBS Cuts POP MART (09992.HK) TP to HKD237.5, Trims Earnings Forecast on Weak Overseas Biz
Recommend 9 Positive 9 Negative 4 |
||||
|
||||
|
POP MART (09992.HK) will hold its 1Q26 earnings conference call on May 13, UBS said in its report. The broker expected POP MART's 1Q revenue to grow 60-65% YoY to around RMB9 billion, above the consensus of RMB6-10 billion. The forecast implies a 16% QoQ decline, extending the continuous QoQ downtrend since 3Q25. The broker expected China operations to remain resilient, with 10% QoQ growth and 80-85% YoY growth, in light of the popularity of the Twinkle Twinkle series and seasonal factors such as the Lunar New Year and winter holidays. Standing in contrast, overseas business was projected to shrink 40-50% QoQ, while growing 30-35% YoY, owing to the moderation of the initial Labubu hype and the normalization of social media marketing cycles during the off-season in Western markets. The broker did not rule out further downward revisions to POP MART's earnings forecasts if the "hype downcycle" persists, although current valuation de-rating partially priced in these risks. The TP was trimmed from HKD278 to HKD237.5, reflecting a 7-9% cut in adjusted net profit forecasts for 2026-28 on lower overseas revenue projections, and a reduction in mid-term revenue growth assumptions from 9.5% to 8.9%, attributable to more conservative overseas expansion assumptions. The rating on POP MART is Buy. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
