Analysis of Pop Mart's IP Replication Capability and Globalization Potential

Based on the latest data obtained from Jinling AI, here is a factual analysis of Pop Mart’s IP replication capability and globalization potential.

1. Core Financial Data and Market Performance
   • Stock Price and Valuation: The stock price has increased by 119.64% since the beginning of the year and 132.79% over the past year. The current P/E ratio is 35.53x, P/B ratio is 16.98x, and EV/OCF is 75.22x[0]. The high valuation reflects the market’s expectations for its IP operation capability and future growth.
   • Profitability: Net profit margin is 30.32%, ROE is 54.52%, and both gross profit margin and net profit margin are at industry highs[0].
   • Cash Flow and Liquidity: Current Ratio is 3.01, Quick Ratio is 2.63, indicating sufficient liquidity and risk resistance[0].
   • Recent Financial Report: EPS for the quarter ending 2025-08-19 was 0.48, with quarterly revenue of 13.88B Hong Kong dollars[0], which is consistent with market expectations for hit products from top IPs like Labubu (this data comes from Jinling API).

2. Analysis of the “Artist Signing + IP Matrix + Hierarchical Operation” Model
   • Artist Signing: Through signing and incubating artist IPs, a differentiated IP portfolio is formed. The strong profitability and cash flow shown in current tool data indirectly confirm the financial efficiency of this model[0].
   • IP Matrix: The company has built a diversified IP portfolio to分散 risk. From the financial data perspective, the maintenance of high net profit margin and ROE indicates that the IP matrix contributes to revenue while maintaining good profit quality[0].
   • Hierarchical Operation: Implementing differentiated resource allocation for different IPs (e.g., increasing global exposure for top IPs and conducting small-scale tests for new IPs) helps improve ROI and control risks.

3. Discussion on Comparability with Tencent Games
   • Product Life Cycle: There are structural differences between game and trendy toy IPs in terms of life cycle, iteration, and user stickiness. Therefore, directly comparing Labubu with “Honor of Kings” is more of a conceptual analogy.
   • Financial Performance: Current tool-provided indicators such as ROE (54.52%) and net profit margin (30.32%) show that Pop Mart has a high level of profitability[0]. However, regarding the sustainability of long-life cycle operations and the proportion of global revenue, further financial report data verification is needed (such as IP renewal cycle, overseas revenue distribution, and IP matrix contribution details).

4. Evaluation of the Path to Becoming a Global Cultural and Creative Giant
   • Internationalization Progress: The tool does not directly provide data on the proportion of overseas revenue and regional distribution, but the high valuation and strong financial performance reflect the market’s optimistic expectations for its international layout[0].
   • IP Hit Replication Capability: From the perspective of high ROE and net profit margin levels, the company already has strong IP commercialization efficiency. However, continuous replication of phenomenal IPs at the “Labubu level” still needs time to verify, especially in terms of artist training cycle, IP maturity, and cross-cultural landing capability.

5. Risks and Uncertainties
   • Artist Dependence: The loss of core artist IPs or fluctuations in creativity are key risk points.
   • Macroeconomic and Industry Volatility: As a discretionary consumption category, trendy toys are vulnerable to changes in macroeconomics and consumer preferences.
   • Valuation and Growth Matching: Current P/E and EV/OCF multiples are relatively high. If subsequent IP matrix expansion or overseas landing fails to meet expectations, it may bring pressure for valuation correction.

6. Conclusion
   Based on current financial data, Pop Mart has outstanding performance in profitability, cash flow, and IP commercialization efficiency[0]. The “artist signing + IP matrix + hierarchical operation” model has brought considerable financial returns, but to determine whether it can become a global cultural and creative giant similar to Tencent Games, more data support is needed (such as overseas revenue structure, IP life cycle management indicators, etc.). The current profit and valuation levels reflect the market’s high expectations for its long-term growth, but the continuous replication of phenomenal IPs and successful globalization still have uncertainties.

References
[0] Jinling API Data: Pop Mart (9992.HK) company overview, real-time quotes, daily line data, financial indicators, and latest quarterly financial report data, including P/E 35.53x, ROE 54.52%, net profit margin 30.32%, Current Ratio 3.01, etc.