JPMorgan Chase & Co.: Maintains a target price of HKD 340 for Pinduoduo and a "buy" rating.

J.P. Morgan released a research report stating that they recently had a conversation with a leading toy outsourcing production supplier to understand the supply chain. The conclusion drawn was that due to more IP brand outsourcing procurement moving out of China, the current shortage of outsourcing production supply has occurred. This also explains why Labubu and Crybaby dolls under Pop Mart have been continuously out of stock besides strong demand. J.P. Morgan said that once the supply shortage normalizes, it is expected that super IPs will have stronger bargaining power, meaning better profit margins in the future. J.P. Morgan is optimistic about Pop Mart mainly because of its strong IP product supply and its global expansion ambition and execution capability. J.P. Morgan predicts that Pop Mart's sales and profit compound annual growth rate from 2024 to 2027 will be 52% and 66% respectively, with a net profit margin of 32% and a net return on assets of 45% in 2027, driven by strong IP, store opening, productivity improvement, category expansion, and profit margin expansion. J.P. Morgan maintains a target price of HK$340 for Pop Mart, which is equivalent to a forecast P/E ratio of 34 times in 2026, with a "Hold" rating.