Is Morgan Stanley Reframing Pop Mart (SEHK:9992) as a Global IP Platform Rather Than a Toy Seller?

• Morgan Stanley recently released a research report on Pop Mart International Group, arguing that investors have misread a slowdown in North American sales as weakness rather than a shift from online to offline channels and broader IP diversification.
• The report frames Pop Mart as an emerging global IP platform whose overall growth potential may be underappreciated when attention centers too narrowly on US sales and the Labubu line.
• Next, we’ll examine how Morgan Stanley’s focus on Pop Mart’s broader global IP platform could reshape the company’s investment narrative.

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What Is Pop Mart International Group's Investment Narrative?

To own Pop Mart, you have to believe it can evolve from a hit-driven collectibles brand into a resilient global IP platform, monetising characters across regions, channels and product formats. Near term, the key catalysts still sit in execution: sustaining revenue and earnings momentum after a very strong year, managing premium valuations, and delivering on international store rollouts and IP launches without overextending. Morgan Stanley’s latest report largely reinforces that narrative rather than changing it, by reframing the North American slowdown as channel mix and diversification instead of a demand crack. That helps sentiment but does not remove core risks such as reliance on a relatively concentrated set of IPs, tight investor expectations after a very large multi‑year share price run, and governance questions around a high valuation with limited board independence.

However, one risk around Pop Mart’s dependence on a few core IPs deserves closer attention. Pop Mart International Group's shares have been on the rise but are still potentially undervalued by 27%. Find out what it's worth.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community currently peg Pop Mart’s fair value between HK$103.54 and HK$544.27, highlighting sharply different expectations. Set against recent debate over US sales trends and IP concentration risk, these contrasting views give you a useful cross‑check on how sentiment could influence the company’s performance.

Explore 14 other fair value estimates on Pop Mart International Group - why the stock might be worth over 2x more than the current price!

Build Your Own Pop Mart International Group Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pop Mart International Group research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Pop Mart International Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pop Mart International Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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