Morgan Stanley cut its price target for Pop Mart (09992.HK) to HK$203 from
HK$214 and kept an Overweight rating. The bank estimates 2Q sales fell about 10%
YoY, below expectations, while core operating margin outperformed forecasts;
China margins improved and overseas cost structure showed greater flexibility. A
RMB 720m FX loss in 1H, driven by foreign‑currency positions and RMB
appreciation, was the main reason for the earnings shortfall; the company plans
to begin hedging FX exposure and diversify its currency mix. Management
announced a RMB 2–5 bln share buyback (c.15–38m shares, ~1–3% of capital), which
Morgan Stanley says could support the share price. Morgan Stanley cut 2026–28
EPS forecasts by 7%, 5% and 7% respectively.
