The toy giant's performance has once again amazed the market.

On August 19, POP MART disclosed its 2025 first-half performance report on the Hong Kong Stock Exchange. The announcement showed that in the first half of this year, POP MART achieved operating revenue of 13.876 billion yuan (RMB, same below), up 204.4% year-on-year; net profit attributable to shareholders was 4.574 billion yuan, up 396.5% year-on-year.

Notably, POP MART achieved revenue of 13.04 billion yuan last year with adjusted net profit of 3.40 billion yuan, which means POP MART's revenue and net profit for the first half of this year have both exceeded the full-year levels of last year.

Related analysis suggests that the IP industry is one with a very high ceiling, but also presents significant challenges for companies to succeed. If POP MART can leverage its "IP-Product-Channel" flywheel and continued global expansion, it is expected to maintain high growth over the next three years and further open up upward valuation space.

**13 IPs Generate Over 100 Million in Revenue**

The announcement shows that in the first half of 2025, POP MART achieved operating revenue of 13.876 billion yuan, up 204.4% year-on-year; gross profit was 9.761 billion yuan, up 234.4% year-on-year; net profit attributable to shareholders was 4.574 billion yuan, up 396.5% year-on-year; adjusted net profit was 4.71 billion yuan, up 362.8% year-on-year.

Additionally, POP MART's gross profit margin in the first half of 2025 reached 70.3%, up 6.3 percentage points from the same period last year, with adjusted net profit margin at 33.9%, up 11.6 percentage points from the same period last year.

Specifically, as of June 30, 2025, POP MART operated 571 stores across 18 countries and regions globally, with a net increase of 40 stores in the first half of this year; operated 2,597 robotic stores, with a net increase of 105 units in the first half of this year.

By region, POP MART drove sales growth across all channels in China by meeting users' diversified category and IP demands and improving operational efficiency through refined management, achieving revenue of 8.283 billion yuan, up 135.2% year-on-year; through deep promotion of localized operations, Asia-Pacific revenue reached 2.851 billion yuan, up 257.8% year-on-year; through increased market development efforts and differentiated channel positioning, Americas revenue reached 2.265 billion yuan, up 1,142.3% year-on-year; leveraging unique product design and enhanced shopping experiences, Europe and other regions achieved revenue of 478 million yuan, up 729.2% year-on-year.

By IP, in the first half of 2025, POP MART had 13 artist IPs with revenue exceeding 100 million yuan, among which THE MONSTERS, MOLLY, SKULLPANDA, CRYBABY, and DIMOO achieved revenues of 4.814 billion yuan, 1.357 billion yuan, 1.221 billion yuan, 1.218 billion yuan, and 1.105 billion yuan respectively during the reporting period.

Among them, LABUBU from THE MONSTERS family, with its unique stylistic charm, has entered the ranks of world-class IPs, becoming one of the hottest IPs globally in the first half of 2025. POP MART stated that based on the unique expression and design of each IP, the company adopted differentiated operational strategies, continuously enhancing IP popularity, actively promoting IP commercialization, thereby strengthening IP vitality and ultimately achieving strong sales performance.

POP MART stated that with IP as its core, the company creates distinctly differentiated plush product lines by grasping the personality characteristics of different IPs. Meanwhile, leveraging LABUBU's vinyl plush product experience, based on vinyl craftsmanship combined with spray coloring techniques and fashion fabrics, it presents the characteristics of different IPs. In the first half of 2025, plush products achieved revenue of 6.139 billion yuan, up 1,276.2% year-on-year, accounting for 44.2% of revenue.

**How Will the 27x Bull Stock Perform Going Forward**

As the "leading stock" in the new consumer sector, POP MART's stock price has welcomed a triumphant upward trend this year.

Wind data shows that since bottoming out in October 2022, POP MART's stock price has risen over 2,700%. Although there was some pullback in June-July this year, it reached a new historical high again on August 7. As of August 19, it closed at HK$280.8 per share with a latest market capitalization of HK$377.1 billion, rising 214.51% year-to-date alone.

Regarding the stock price surge, research analysis suggests that the IP industry is one with a very high ceiling but also presents significant challenges for companies to succeed. POP MART's impact on the domestic IP industry may be more profound than the market imagines: the company has validated the possibility for domestic IP companies to open global markets by relying on China's strong supply chain and high-quality operations with character-based IPs.

It's worth mentioning that before the semi-annual report release, Morgan Stanley had just published its latest research on POP MART, believing that the company, with its "IP-Product-Channel" flywheel and continued global expansion, is expected to maintain high growth over the next three years and further open up upward valuation space. The report set static P/E ratios for 2025 and 2026 at 31x and 22x respectively, corresponding to adjusted net profit growth rates of approximately 210% and 45% year-on-year, with a benchmark target price of HK$365 per share.

Additionally, Citi significantly raised POP MART's target price from HK$162 per share to HK$308 per share, reiterating a "Buy" rating, mainly because POP MART's iconic IP - LABUBU - continues to gain global recognition, and new product launches are expected to serve as near-term catalysts, such as THE MONSTER Wacky Mart series and themed pop-up stores.

Citi mentioned that the expanding celebrity effect and new product launches have driven the LABUBU craze to spread to European and American markets, which not only pushes up secondary market prices for the toys, but LABUBU's value at auction houses continues to climb, demonstrating the continuously strengthening influence of its IP.