1、MAsia Pacific InsightIP product flywheel spins fast on global social media bandwagon:Pop Marts exponential growth in N.A./Europe this year has likely far exceeded its expectations.We think Pop Marts core consumer cohort is the most connected generation globally through social media,leading to impres

2、sive bandwagon effects across geographies.Videos related to hundreds of people queueing outside Pop Mart stores or celebrities carrying Pop Mart bag charms are going viral.Google Trends shows that Labubu is drawing attention worldwide at a level similar to Harry Potter,Star Wars,and Disney(Exhibit 4

3、).However,consumer enthusiasm about Pop Mart has drawn investor questions about the sustainability.IP popularity does come with volatility,but on a long-term basis we think Pop Marts has significant space to grow.We estimate Pop Marts five close peers generated US$77bn retail value for IP products i

4、n 2024 globally,up 7%y/y.The total market could be much bigger if we were to include other renowned IP sales that we cant track.Driven by growing kidult demand,we expect Pop Marts sales to grow from US$3.6bn in 2025 to US$6bn in 2027,becoming the fastest-growing global consumer brand at scale.Whats

5、in the price,and whats not:We think the market has fully factored in Pop Marts exponential growth in 2025 but may not have strong conviction on the long-term outlook.Peers like Disney,Bandai and Sanrio trade at 1.7-3.5x PEG,reflecting their longevity and moats.With this report,we upgrade our target

6、P/E for Pop Mart to 51x 2025e,implying 35x 2026e and 1.5x PEG,which drives our PT increase.Admittedly,after the 175%gain YTD(vs.+24%in HSCEI),a lot of good news is in the price.But,we believe a combination of positive surprises on revenue and progress on new avenues for monetization will continue to