Key Takeaways:
CICC maintained its outperform industry rating on Pop Mart with a HK$218 target price, citing LABUBU's appearance at the 2026 FIFA World Cup opening ceremony as a catalyst for global brand recognition.
"LABUBU's appearance at the World Cup opening ceremony marks the first time a third-party IP has been featured in FIFA history, which we believe will significantly boost brand recognition in the Americas," CICC analysts said in a June 16 report.
The broker kept its FY2026 and FY2027 adjusted net profit forecasts at 133 billion yuan and 155 billion yuan, respectively. Pop Mart trades at 16x FY2026 adjusted P/E, below the 19x target multiple that implies 19% upside from current levels. The stock's FY2027 adjusted P/E stands at 13x.
Pop Mart shares have been under pressure as the company executes a "pit stop maintenance" strategy involving store adjustments and product planning. The World Cup exposure, combined with prior brand moments such as the Macy's Thanksgiving Day Parade and a Coca-Cola collaboration, could accelerate the company's global expansion, particularly in the Americas.
Transaction volume of some Labubu products surged 30-fold on Chinese e-commerce platforms after the June 12 opening ceremony, with related search queries rising 300%, according to e-commerce data. The Catch the Win Vinyl Plush Doll, originally priced at 599 yuan, has been resold at a markup of as much as 660 yuan on secondary markets. On Poizon, a secret rare glass cup from The Monsters x FIFA Series traded at 359 yuan to 479 yuan, up six to seven times from its 59 yuan retail price.
Pop Mart has been actively managing IP exposure, slowing the release of new products from its flagship brand to preserve long-term value. The company expects a sequential improvement in overseas revenue from the third quarter as adjustments take effect, CICC noted.
The maintained rating and target price signal that CICC sees the World Cup appearance as a structural catalyst rather than a one-off event. Investors will watch Pop Mart's third-quarter overseas sales for evidence that the brand momentum is translating into revenue growth.
This article is for informational purposes only and does not constitute investment advice.
