Stock Track | POP MART Soars 5.05% as Morgan Stanley Maintains "Overweight" Rating with HK$365 Target Price

Stock Track
Aug 07, 2025

POP MART (09992.HK) shares surged 5.05% during Thursday's intraday trading session, reaching a new high. The significant upward movement comes on the heels of a bullish research report from Morgan Stanley, which reaffirmed its "Overweight" rating on the stock with a target price of HK$365.

Morgan Stanley's positive outlook is based on their recent attendance at POP MART's Pop Toy Show in Beijing. The broker noted strong consumer interest, particularly in the Twinkle Twinkle booth, where products ranging from figures to accessories sold out rapidly. They anticipate Twinkle Twinkle to become a significant contributor to POP MART's sales from 2025 onwards. Additionally, the Crybaby product line showed popularity, with average prices exceeding RMB250 for various merchandise.

The investment bank highlighted POP MART's underestimated platform value, pointing out the company's potential to tap into artistic resources globally. Despite the unpredictable nature of IP success, Morgan Stanley believes POP MART's intrinsic value surpasses its owned IPs, a factor they argue is underappreciated by the market. With a projected 2025 PE ratio of 46x, POP MART remains Morgan Stanley's top pick in the sector, reflecting their confidence in the company's growth prospects and market position.

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