LABUBU is exploding globally! POP MART has skyrocketed over 200% this year; how much longer can this "Moutai for young people" stay hot?

POP MART is accelerating its global crossover!

The giant in the trendy toy industry $POP MART (09992.HK)$ Today, it reached a new all-time high during trading, with the company's stock price climbing from about 90 Hong Kong dollars at the beginning of the year to around 270 Hong Kong dollars currently, a cumulative increase of over 200% this year.

As POP MART continues to hit new highs, major banks are also rushing to raise the Target Price.

Deutsche Bank Analyst Jessie Xu in the latest Research Reportsraised the Target Price from 200 Hong Kong dollars to 303 Hong Kong dollars, predicting that its Net income for 2025 could reach 7.91 billion yuan, with amazing growth potential.

Deutsche Bank believes that,The cross-cultural appeal of POP MART signifies that its market potential far exceeds previous expectations, and penetration into the European and American markets may have only just begun; with accelerated expansion in overseas markets and the diversification of product categories, profitability is expected to be further solidified.

Morgan Stanley has raised the Target Price for POP MARTsignificantly from 224 Hong Kong dollars to 302 Hong Kong dollars.The institution believes that The true charm of POP MART lies in its powerful "IP-product flywheel" model.The company is able to continuously output high-appeal and high-quality new products, constantly activating consumer enthusiasm. This innovation-driven approach is not limited to a single popular IP but forms a foundation for long-term stable growth through a diversified and rapidly iterating IP ecosystem.

This can also be seen from POP MART's performance, as the star IP—Labubu series products are diverse and iterate quickly, with revenues reaching 3 billion yuan in 2024.The fourth generation of products will be launched at the end of 2025 or early 2026.

In addition,Other IPs like Molly and Dimoo also perform strongly,with multiple products experiencing supply shortages in both the Chinese and American markets, indicating that POP MART is not solely driven by a single IP.Its diversified IP matrix provides a broader growth space.

In addition, Morgan Stanley specifically pointed out that the North American and European markets will become key growth engines for POP MART in the future, with North American market revenue expected to catch up with or even surpass the Chinese market by 2028-2029.

There are also fund managers who believe that "The investment logic of both Moutai and POP MART should essentially be the same. POP MART is the 'Moutai for the younger generation', or Moutai is 'POP MART for the older generation', both emphasizing spiritual attributes that transcend the practical value of the products themselves.""As Wang Ning said, 'The most useless products are the longest-lasting', except that the older generation drinks Moutai for socializing outwardly, while the younger generation engages in self-satisfying, inward socializing."

However, the fund manager of FUGUOXIAOFEI selected 30 Stocks, Zhou Wenbo, believes that, 'Recently, the market attention on new consumption sector companies has been very high, attracting a significant amount of incremental funds, and currently, many companies' valuations are no longer cheap, posing a risk of stock price adjustments in the short term.'However, from a medium to long-term perspective, many companies in the new consumption sector are still in the early to mid-growth stages, and there is still significant growth potential in the future. It is believed that there will be more companies emerging in areas like emotional consumption, cost-effectiveness, and going overseas.

The wildly popular Labubu, which companies are being affected by it?

Recently, the craze for POP MART has also spilled over to other companies. For example, $Here Group (HERE.US)$ 、 $DREAM INT'L (01126.HK)$ And so on.

– Song of Quantum: Entering the trendy toy market to create the phenomenon-level IP "WAKUKU".

On March 24, 2025, Song of Quantum announced that it has reached an agreement with Shenzhen Yiqi Culture Co., Ltd. (Letsvan).MergerInvestment cooperation,MergerAfter completion, Letsvan will become a subsidiary of Quantum Song Holdings, marking Quantum Song's official entry into the trendy toy market and a broader consumer field.

Letsvan was established in 2020, and its popular IP product "WUKUKU" is set to launch by the end of 2024 and has received market recognition, becoming a trendy toy under the promotion of celebrities.

In terms of stock price performance, Quantum Song has already increased more than fourfold this year.

In addition, the latest performance shows that Quantum Song's revenue for the third quarter of the 2025 fiscal year is approximately 0.571 billion yuan, with a net income of about 41.14 million yuan.It has achieved profitability for eight consecutive quarters.

It is worth noting that it is the "first stock of artist management." $YH ENT (02306.HK)$ It has also collaborated with the popular Wakuku to build a "golden closed loop of 'celebrity IP - scarce trendy toys - fan economy,'" possibly writing a road for industrialization of inevitable hits.

First, top-tier artists provide rich original IP resources to Wakuku.

Secondly, the platform operation of Wakuku releases its potential.

Additionally, leveraging Lehua Entertainment's mature fan big data and Wakuku's DTC channels, both parties achieve an efficient link of "fan demand insights - agile product development - limited precise launches."

Recently, Lehua Entertainment has also welcomed a strong trend, having risen over 380% this year.

– DREAM INT'L: the world's largest plush toy manufacturer.

$DREAM INT'L (01126.HK)$It is the world's largest plush toy manufacturer, with the largest plush toy production capacity globally.It is the first Korean company listed in Hong Kong. The company's cumulative increase this year is over 90%.

As an absolute leader in global trend toys and plush toy manufacturing, DREAM INT'L's moat lies not only in top-notch craftsmanship and large-scale flexible production capacity but also in its deep and diverse customer barriers.

The company's customer cohort includes many globally renowned brands,such as American Disney, Funko, Oriental Land, Spin Master, Build-A-Bear Workshop, among others.For example, with Disney, DREAM INT'L has long been manufacturing various plush toys for them, from classic Mickey Mouse and Donald Duck to the recently popular Stitch and Duffy. With outstanding production capabilities, DREAM INT'L transforms these beloved cartoon characters into exquisite toys.

Guoyuan International pointed out that in recent years, per capita toy consumption in China has grown rapidly, but the market size is still lower than that of major toy consumption markets such as the United States and Europe, indicating significant growth potential in the future. With the continuous expansion of the toy consumption cohort and consumers' increasing preference for IP toys, combined with the recent enhancement of domestic companies' research and development, product quality, and IP commercialization capabilities, as well as the emergence of new toy categories, the Chinese toy market is expected to show accelerated growth.

However, due to the recent frenzy phenomenon in the economy driven by POP MART and others, some Institutions believe that,Buying POP MART now is equivalent to buying liquor at a high level. Therefore, mooers need to invest cautiously.

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