Pop Mart (09992.HK) experienced a surge in its stock price during the morning session, boosted by strong third-quarter results, with the stock at one point soaring over 20%. As of the time of writing, the stock rose 17.10% to 74.30 HKD. The company's Q3 2024 earnings report, released post-market on Tuesday, revealed a significant 120% to 125% year-on-year increase in overall revenue, extending the high growth trend from the first half of the year.
Specifically, revenue in the mainland China market grew 55% to 60% year-on-year, while revenues in Hong Kong, Macau, Taiwan, and overseas markets increased even more significantly, reaching 440% to 445%. Performance across various channels was also strong; physical store revenue grew 30% to 35% year-on-year, robot store revenue grew 20% to 25%, and blind box sales grew 55% to 60%. E-commerce and online platform revenues increased even more dramatically, by 135% to 140% year-on-year, with TikTok and Tmall flagship store revenues growing 115% to 120% and 155% to 160%, respectively. Wholesale and other channel revenues also rose by 45% to 50% year-on-year.
The company had already shown strong growth momentum in the first half of the year. During this period, domestic revenue reached 3.21 billion RMB, up 31.5%, with operating profit at 890 million RMB, up 76.9%, and the operating profit margin rising to 27.7%. The overseas market performed even more outstandingly, with first-half 2024 overseas revenue reaching 1.35 billion RMB, a substantial year-on-year increase of 259.6%, and operating profit increasing by 407.3% to 400 million RMB, as the number of retail stores expanded to 83.
Institutions generally hold a positive outlook for Pop Mart's performance in the second half of the year. Both Kaiyuan Securities and Tianfeng Securities believe that as the second half enters the sales peak season, combined with the boost from several important shopping festivals, the company is likely to maintain its high growth flexibility. Anxin International predicts that Pop Mart's annual gross margin will improve by about 3 percentage points, with second-half net profits potentially exceeding first-half levels due to increased overseas holiday sales.
Overall, Pop Mart's performance in both domestic and international markets is remarkably impressive. As a leading player in the trendy toy sector, its future growth potential is widely regarded with optimism.
