Hong Kong Stock Market Review: POP MART's Cultural Expansion Overseas
POP MART continues to achieve success in cultural expansion, with first-half revenue of 4.558 billion RMB, a year-on-year increase of 62%, and a net profit of 921 million RMB, a year-on-year increase of 93%. Overseas business revenue grew by 260%, accounting for 30% of the total. The company expects a 200% growth for the full year and plans to open 30-40 new stores in the second half of the year, mainly in North America and Southeast Asia. Overall revenue is expected to exceed 10 billion RMB, with a growth rate of no less than 60%. POP MART's success lies in its IP matrix and category expansion, continuously expanding its development space in a situation where consumer demand exceeds that of competitors
The recent popularity of "Black Myth: Wukong" has sparked aspirations for cultural expansion, but for POP MART, the company has already been successful in this regard.
In the first half of the year, POP MART's revenue reached 4.558 billion RMB, a year-on-year increase of 62%, with a net profit of 921 million RMB, a year-on-year increase of 93%. Among them, overseas business revenue increased by 260% to 1.35 billion RMB, accounting for 30% of the total, and branch performance increased fourfold, accounting for 31% of the total.
Despite only two years of international expansion, POP MART's revenue contribution has already reached 30%, with a rapid growth rate and no signs of slowing down. The company forecasts a 200% annual growth in overseas markets, with an expected increase to 40% in Q4. In the second half of the year, the company plans to open 30-40 new stores, mainly in North America and Southeast Asia.
Successful operational experiences can be continuously replicated externally, and the low marginal cost of expanding IPs allows for global replication once designed, making the growth trajectory simple and clear.
Furthermore, the company forecasts that the overall annual revenue will exceed 10 billion RMB, with a growth rate of no less than 60%, indicating continued stable performance in the domestic market.
On one hand, the company's IP matrix is gradually taking shape, with the top three IPs - MOLLY, THE MONSTERS, and SKULLPANDA - each contributing around 12-17%, while the next three IPs also contribute 5-8% of the revenue. On the other hand, the company continues to expand its product categories, with the proportion of figurines decreasing from 72.5% in the same period last year to 58.3%, indicating broader growth opportunities outside blind box products. The company will expand into clothing and accessories, and in the second half of the year, it will open POP MART accessory stores. It has also recently launched its first mobile game.
Overall, considering all these factors, the focus is less on competitors and more on consumer demand. Given the immense space for growth, it is also possible to replicate another POP MART overseas.
In comparison to another international company, Miniso, although it also has IP products, the business model is different. Miniso relies on the domestic supply chain to allow consumers to purchase their favorite IPs, while POP MART faces greater challenges in IP creation, with a higher ceiling. It is also a rare consumer stock in the Hong Kong stock market that has yet to reach its growth ceiling