The mini version of LABUBU can be "hung on the phone," and is expected to become the next super hot item; currently, the monthly production capacity of plush products is more than ten times that of the same period last year. Pop Mart surged nearly 7%, with its stock price surpassing 300 HKD, reaching a historic high.
Written by: Li Xiaoyin
Source: Wall Street News
The latest financial report shows that Pop Mart's net profit in the first half of the year increased by 400%, and revenue from plush products grew by 1276.2% year-on-year, making it the largest category. THE MONSTERS (centered around LABUBU) generated 4.81 billion yuan, accounting for 34.7% of total revenue, significantly up from the same period last year.
At the performance live broadcast on the morning of August 20, Pop Mart's founder, chairman, and CEO Wang Ning stated that there have been many "unexpected surprises" in the past six months, and LABUBU has become a world-class IP.
In response to questions about performance guidance, Wang Ning mentioned that at the beginning of this year, he was very confident in achieving a 50% overall growth. Last year's revenue was 10 billion, and this year he hopes to reach 20 billion, but now it feels like achieving 30 billion this year should be quite easy, while also hoping everyone pays more attention to health indicators.
Management also expects that the company's net profit margin will continue to improve in the second half of the year, with this year's net profit margin around 35%.
On Wednesday, during the Hong Kong stock market, Pop Mart surged nearly 7%, with its stock price surpassing 300 HKD, reaching a historic high, and its market value exceeding 400 billion HKD.
This week, the mini version of LABUBU is expected to become the next super hot item
Wang Ning explained the commercial significance behind LABUBU becoming a world-class IP. He cited examples such as Mickey Mouse, Naruto, and Hello Kitty, which, despite not being highly discussed today, still hold significant commercial value; this is the goal LABUBU hopes to achieve.
Wang Ning stated that this year, LABUBU's new products are relatively restrained, without over-consuming this IP, and there is currently a large demand, which will have great value in the future. He also "spoiled" that the mini version of LABUBU will be released this week, which can be "hung on the phone," and is expected to become the next super hot item.
Wang Ning also expressed that he does not feel that a single IP accounting for a large proportion of the company's revenue is unhealthy; more original IPs can prove that we are a relatively healthy platform-based IP.
Monthly production capacity has surged tenfold compared to last year, facing significant challenges in the second half of the year
Pop Mart's Chief Operating Officer stated at the meeting that with LABUBU being so popular, its sales revenue only accounts for about 35%, and frankly, our production capacity in the second half of the year is indeed facing significant challenges.
The company's Vice President Yuan Junjie introduced that the current monthly production capacity of plush products is more than ten times that of the same period last year. From a technical perspective, lean production automation is the key to enhancing production capacity.
The company's Chief Operating Officer Si De added that the current market demand for plush products is excessively large, so the entire phase is still in a rapid expansion of production capacity, and the company's current core strategy is to maximize production capacity first.
There is still a large space in the overseas market, with an average of three new stores opening each week
It is worth noting that in the first half of the year, Pop Mart's overseas market became the biggest highlight—sales increased by 440% year-on-year, contributing about 50% of total revenue, with single-store efficiency reaching four times that of domestic stores.
Wang Ning expressed that the growth in the overseas market is faster than expected, and he is very confident in it, including many countries like Germany and Mexico, where the market has "just begun."
Management revealed that the company is also exploring emerging markets in the Middle East, Central Europe, and Central and South America, and in the second half of this year, it will maintain an average of three new store openings per week.
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