Goldman Sachs: Raises Bubble Mart's target price to HK$350, maintaining a positive outlook on its profit visibility.

Goldman Sachs released a research report stating that the stock price of Pop Mart showed positive performance after the release of the company's financial report for the first half of the year. They believe this reflects the positive surprises expected by the management, including strong sales momentum, especially in overseas markets, and higher-than-expected profit margin expansion. The management expects the full-year net profit margin to reach 35%. The management also announced the launch of a mini version of Labubu this week, which will help expand usage scenarios. Goldman Sachs has a positive view on the company's earnings visibility, with factors such as continued strong IP momentum, expanding manufacturing capacity to commercialize IP popularity, successful entry into new markets like the US and Europe, and strong revenue performance expected to further leverage in the second half of the year. Goldman Sachs raised its earnings forecast for Pop Mart for the years 2025 to 2027 by 28% to 34%, now expecting adjusted net profits of 12.8 billion yuan and 17.6 billion yuan respectively in 2025 and 2026 and set a new target price for the next 12 months at 350 Hong Kong dollars, up from 260 Hong Kong dollars, maintaining a "neutral" rating.