Broker: China Galaxy International Securities (CGSI)
Date of Report: May 14, 2026
Excerpt from China Galaxy International Securities (CGSI) report.
Report Summary
- Stock: Pop Mart (9992 HK)
- Action: Add (Reiterate)
- Target Price: HK\$205.0 (lowered from HK\$257.2)
- Current Price: HK\$160.9
- Upside: 27.4%
- Key Idea: Pop Mart delivered a strong 1Q26 with 75-80% yoy revenue growth, mainly driven by robust China demand. However, management expects FY26F margins to be under pressure due to higher raw material and logistics costs and an unfavorable regional revenue mix.
- Highlights:
- China sales up 100-105% yoy, with online channel growth outpacing offline.
- FY26F GPM is guided to decline by 1-2 percentage points due to cost pressures and regional mix changes.
- Overseas growth is normalizing; focus shifting to improving store operations, membership, and supply chain, rather than aggressive store expansion.
- FY26-28F EPS forecasts cut by 12-16% to reflect slower overseas growth and margin compression.
- Implications: Despite margin pressures and slower overseas growth, CGSI maintains a positive view on Pop Mart’s long-term potential as a global IP platform. Investors are advised to “Add” with a revised target price of HK\$205.0, representing significant upside from current levels. Key catalysts include new product launches and further clarity on FY26F margins. Downside risks include unsuccessful new launches, geopolitical issues, and tariffs.
above is an excerpt from a report by China Galaxy International Securities (CGSI). Clients of China Galaxy International Securities (CGSI) can be the first to access the full report from the China Galaxy International Securities (CGSI) website : https://www.chinastock.com.hk
