Pop Mart: Capitalizing on Twinkle Twinkle Momentum, China Restocking, and Global Expansion to Drive Buy-Rated Upside

Morgan Stanley analyst Wei Dustin has maintained their bullish stance on 735 stock, giving a Buy rating on January 21.

Wei Dustin has given his Buy rating due to a combination of factors tied to both product momentum and operational execution. He expects the new Twinkle Twinkle line to become a dominant contributor to Labubu sales in China over the next few years, signaling robust underlying demand. Management’s decision to ramp up supply and accelerate restocking should help the company better absorb demand spikes, reduce reliance on long-duration pre-sales that complicate product lifecycle management, and limit excessive secondary-market premiums. With Greater China currently representing more than half of total revenues and having been undersupplied in the recent period, the combination of restocking popular items and launching additional Twinkle Twinkle products creates meaningful upside potential in this core region.
Beyond Greater China, Dustin sees the broader Asia-Pacific business, particularly Japan, as a strong long-term growth engine, with offline expansion in the US and Europe adding further support to the global growth story even as online sales in those markets cycle a high base. He views Pop Mart as a scalable and efficient platform for developing multiple intellectual properties, implying that the investment case does not depend on any single character or series, though the strong success of Twinkle Twinkle serves as a powerful near-term catalyst for renewed investor interest. Finally, the company’s ongoing share repurchase program has materially boosted sentiment and appears to be drawing in investors who were waiting for clearer catalysts, reinforcing his positive stance on the stock’s risk-reward profile.

Dustin covers the Consumer Cyclical sector, focusing on stocks such as Pop Mart International Group Limited, Samsonite International SA, and ANTA Sports Products. According to TipRanks, Dustin has an average return of 41.1% and a 43.33% success rate on recommended stocks.

In another report released on January 21, TipRanks – Anthropic also upgraded the stock to a Buy with a HK$217.00 price target.