Pop Mart Stock Surges on Pro-Consumption Policy Dividends

① What pro-consumption policies have been introduced recently? ② How do institutions view Pop Mart's share repurchase? Cailian Press, January 20th, by editor Hu Jiarong. Boosted by recent pro-consumption policy incentives, consumer-related stocks in Hong Kong performed strongly today. As of press time, $POP MART (09992.HK)$ rising over 9%, $AUNTEA JENNY (02589.HK)$ surged over 8%, $BLOKS (00325.HK)$ 、 $GUMING (01364.HK)$ rose nearly 5%. Coconut water $IFBH (06603.HK)$ once surged over 20%, and is now up more than 18%. Policy support intensifies at the national level, highlighting the pivotal role of consumption as an economic driver This market performance is closely tied to continuous policy efforts. On January 16th, Premier Li Qiang of the State Council convened a State Council executive meeting, focusing on special initiatives to boost consumption and accelerate the development of new growth points in service consumption. The meeting explicitly stated that the special initiative to stimulate consumption will be implemented thoroughly, releasing the integrated effects of policies, closely linking livelihood improvements with consumption promotion, strengthening the intrinsic motivation for household consumption, and fully leveraging the foundational role of consumption in economic growth. The meeting also emphasized accelerating the cultivation of new growth points in service consumption, supporting new business models, formats, and scenarios, improving long-term mechanisms to promote consumption, implementing paid leave systems, enhancing both consumption capacity and willingness, driving the coordinated upgrading of consumption patterns and industrial structures, and expediting the development of a robust domestic market. Local policies work in synergy, diversifying consumption expansion pathways Under the guidance of national policies, regions are also accelerating plans to boost consumption. Gansu Province's recently released "15th Five-Year Plan" proposal explicitly outlines measures to coordinate employment promotion, income growth, and expectation stabilization, thereby enhancing residents' consumption capacity. It advocates for green and intelligent upgrades in major consumption categories, taps into basic consumption potential, stimulates improvement-driven consumption vitality, and actively fosters new consumption forms such as digital, green, and smart consumption. Guangzhou, on the other hand, focuses on building itself into an international consumption hub, proposing the coordinated advancement of livelihood improvements and consumption promotion, exploring effective ways to convert traffic into consumption growth. The plan emphasizes optimizing the implementation of trade-in policies, expanding inbound tourism consumption, building the "Shop in China" brand, fostering first-launch economies and domestic trend economies, and polishing the "Eat in Guangzhou" golden reputation. Pop Mart leads the market rally Amid a broad-based rise in consumer stocks, $POP MART (09992.HK)$Pop Mart ranked among the top gainers. In addition to benefiting from policy dividends, the company’s recent capital operations have bolstered market confidence. On January 19, Pop Mart announced a share repurchase of approximately HKD 251 million for 1.4 million shares at a price range of HKD 177.7-181.2 per share. This marks the company’s first share repurchase since the beginning of 2024. Morgan Stanley analysis noted that this repurchase is expected to attract more investor attention, particularly from institutional funds awaiting share price catalysts. Analysts believe that Pop Mart is currently demonstrating robust growth momentum with a clear long-term development strategy. The company’s net profit is projected to reach RMB 12.6 billion in 2025. As of the end of last year, the company held approximately RMB 20 billion in net cash, providing ample financial resources to create additional value for shareholders. $AUNTEA JENNY (02589.HK)$In its previous earnings forecast, the company anticipated achieving a net profit of RMB 495 million to RMB 525 million for the full year 2025, representing a year-on-year increase of 50%-60%. Adjusted net profit is expected to be RMB 560 million to RMB 590 million, up 34%-41% year-on-year. Galaxy Securities estimated that adjusted net profit for the second half of the year will reach RMB 320 million to RMB 350 million, with a year-on-year growth rate as high as 54.8%-69.5%. The brokerage firm attributed the rapid growth in second-half performance primarily to three key drivers: accelerated expansion of store networks, improved same-store operational efficiency, and the release of cost-reduction and efficiency-enhancement results.$DRIVE (920275.BJ)$。 Editor/Jayden