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EUR 88.24
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Pop Mart (PM) is the largest and fastest growing pop toy company in China, in terms of 2019 revenue and revenue CAGR over 2017-19. PM had a 8.5% market share by retail value, making it the largest player in the pop toy retailing market, as per Frost & Sullivan.
Earnings growth has been stupendous, to say the least, as revenue has increased by a factor of 10.6x over 2017-19, while PAT increased by 281x. Revenue growth has been driven by both an increase in its IP portfolio, as well as rapid expansion of its distribution network.
Earnings growth slowed down in 2020, owing to the COVID induced lockdown, however, the company still managed to register strong growth. Although, the growth was primarily driven by its earlier network expansion as SSSG turned negative.
In my previous note, I’ve covered various aspects of the deal:
Pop Mart Pre-IPO - Earnings growth has been stellar, but is it a retailer or brand owner?,
Pop Mart Pre-IPO - Peer set and valuation
Pop Mart Pre-IPO - PHIP updates - Still riding on past expansion
In this note, I’ll talk about the updated valuation post the PHIP updates.
Pop Mart Pre-IPO
Pop Mart plans to raise around US$200-300m in its Hong Kong IPO.Pop Mart (PM) is the largest and fastest growing pop toy company in China, in terms of 2019 revenue and revenue CAGR over 2017-19. PM had a 8.5% market share by retail value, making it the largest player in the pop toy retailing market, as per Frost & Sullivan.
Earnings growth has been stupendous, to say the least, as revenue has increased by a factor of 10.6x over 2017-19, while PAT increased by 281x. Revenue growth has been driven by both an increase in its IP portfolio, as well as rapid expansion of its distribution network.
Earnings growth slowed down in 2020, owing to the COVID induced lockdown, however, the company still managed to register strong growth. Although, the growth was primarily driven by its earlier network expansion as SSSG turned negative.
In my previous note, I’ve covered various aspects of the deal:
Pop Mart Pre-IPO - Earnings growth has been stellar, but is it a retailer or brand owner?,
Pop Mart Pre-IPO - Peer set and valuation
Pop Mart Pre-IPO - PHIP updates - Still riding on past expansion
In this note, I’ll talk about the updated valuation post the PHIP updates.
Underlying
Pop Mart
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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