• Both 3Q26 revenue and adjusted PATMI were in line with our estimates. Revenue grew 12% YoY, softer mainly due to Prime Day shifting from its usual 3Q timing to 2Q this year, which pulled forward retail sales. 9M26 Revenue/Adjusted PATMI were at 70%/71% of our FY26e forecasts.
• AWS accelerates for the sixth consecutive quarter (+39% YoY), the fastest growth in 19 quarters, with backlog +189% YoY. AMZN maintained its FY26e CapEx guidance at US$220bn but expects spending to increase meaningfully in FY27e.
• We upgrade our recommendation from ACCUMULATE to BUY with an increased target price of US$330 (prev.US$320). We increase FY27e revenue and adj.PATMI by 2% and 3%, respectively, to reflect strong growth in AWS. We have also increased our FY27e CAPEX estimate by 3%. We think AMZN is well-positioned in AI by being model-agnostic and leveraging its full-stack capabilities, including custom chips and partnerships with large LLM models. Aggressive CapEx creates FCF pressure, but strong demand visibility supports sustained infrastructure investment. We believe these investments will benefit AMZN over the long term, strengthen its market leadership and create significant barriers to entry for potential competitors.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
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