Pop Mart International (09992) Operations resume normal in 1HFY2023. Offline sales recover rapidly December 4, 2023 125

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKD28.47

Pop Mart International Group Limited (09992) is principally engaged the product design and
development and sale of pop toys in China and certain overseas countries and regions. Pop
Mart brand products are primarily categorized into blind boxes, action figures, BJDs and
accessories. Revenue of the Company is generated in Mainland China and Hong Kong,
Macao, Taiwan and overseas through: offline channels, online channels, and wholesales
channels and others. Proprietary products of Pop Mart are mainly divided into: artist IPs and
licensed IPs. Artist IPs are the major product type of the Company, primarily including
In 1HFY2023, Pop Mart opened 19 new physical stores in Mainland China. The number of
physical stores increased to 340. The company opened 118 roboshops in Mainland China.
The number of roboshops increased to 2,185. The total number of registered members in
Mainland China increased to 30.388 million. In particular, there were 4.384 million new
registered members. During the first half of 2023, the sales contributed by members
represents 92.2% of total sales, with repeat purchase rate of the member of 44.5%. The
number of stores in Hong Kong, Macao, Taiwan and overseas cities amounted to 55
(including joint ventures) and the number of roboshops amounted to 143 (including joint
ventures and franchise), respectively, with overseas e-commerce platforms reaching 28. Pop
Mart established the first physical store in the France and Malaysia during the period.
Operations resume normal in 1HFY2023. Offline sales recover rapidly
In 1HFY2023, Revenue of the company increased to RMB2,814 million, representing a yearon-year increase of 19.3%. Profit for the period increased to RMB477 million, representing
an increase of 43.3% YoY. Basic EPS were RMB35.46 cents, and no interim dividend was
paid. Non-IFRS adjusted net profit (after excluding share-based payment) increased to
RMB535 million, representing an increase of 42.3% YoY.
Costs of sales increased by 12.9% to RMB1,116 million. The Company’s gross profit increased
by 23.9% to RMB1,698 million. Gross profit margin increased from 58.1% for the first half of
2022 to 60.4% for the first half of 2023, primarily due to the increase in gross profit margin
of proprietary products.
Revenue from Mainland China Offline channels increased by 32.4% to RMB1,451 million,
amongst which, revenue from retail store sales increased by 32.3% YoY to RMB1,179 million,
primarily due to the number of retail stores increased, offline channels consumption has
recovered due to full resumption of normal social and economic operations in the first half
of 2023; and enhance the image of store decoration, improve the display effect and relocate
to a better location to attract foot traffic, thereby boosting sales. Revenue from roboshop
sales increased by 32.9% YoY to RMB271 million, primarily due to the roboshops increased,
gradually relocated machines with low sales to premium sales locations; with the recovery
of offline consumption and tourism market, machines in high-speed railway stations,
airports, scenic spots, cinemas and other scenes saw rapid growth in sales

About the author

Profile photo of Eric Li

Eric Li

李浩然先生(Eric Li) 高級分析師 現任現為輝立証券持牌高級分析師,曾任職股票基金、家族辦公室及證券公司等,擁有多年的證券研究部門從業及投資經驗,並先後於香港最暢銷的財經媒體撰寫投資專欄。畢業於香港理工大學電子計算系。 Eric is currently a licensed research analyst at Phillip Securities. Prior to joining Phillip Securities, he has years of equity research and investment experiences in asset management company, family office and securities company. Meanwhile, he has written investment columns in Hong Kong`s best-selling financial media for years. He holds Bachelor of Arts in Computing from The Hong Kong Polytechnic University.

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