Morningstar: Bubble Mart stock is overvalued despite strong profit guidance, raises company's fair value estimate to 202 Hong Kong dollars.

Morningstar report states that the stock valuation of Pop Mart is too high, and the market may be overlooking the higher business risks associated with its IP. The company expects its first-half revenue to increase by at least 200% year-on-year, which significantly exceeds Zhang's expectations. Pop Mart's flagship IPs such as "Elf Team," Molly, and "Cry Baby" have gained global recognition, and the sell-out of its new plush toy series "Labubb 3.0" and Cry Baby "Leopard Cat" is clear evidence of this. Morningstar has raised Pop Mart's fair value estimate from 164 Hong Kong dollars to 202 Hong Kong dollars, as it expects overseas revenue to increase by 480% year-on-year in the first half, but still believes that the company's stock valuation is too high.