Daily Investment Strategy
Daily focus：Pop Mart（9992）
Pop Mart (9992) announced its annual performance report for the year ended December 31, 2024, Annual revenue reached RMB 13.038 billion, a significant YoY increase of 106.9%. Profit attributable to owners of the company was RMB 3.125 billion, an increase of 188.8% YoY. Basic earnings per share were RMB 2.36, compared to RMB 0.81 in the same period last year. Through IP incubation and operation, Pop Mart successfully created several popular trendy cultural IP images. Among them, THE MONSTERS, MOLLY, SKULLPANDA, and CRYBABY achieved revenues YoY growth rates of 726%, 105%, 27%, and 1537% respectively. Management expects sales to grow by more than 50% YoY in 2025, with overseas and Hong Kong, Macau, and Taiwan businesses expected to grow by over 100%, highlighting the US and European markets as key areas this year.
The United States announced an additional 25% tariff on imported cars
President Trump has signed an executive order imposing a 25% tariff on all foreign-made cars and light trucks, set to take effect on April 2, 2025, marking a significant increase from the previous 2.5% baseline rate. This announcement, part of Trump’s broader “Liberation Day” initiative for reciprocal tariffs, triggered immediate market reactions with the S&P 500 falling 1.2% and automaker stocks suffering notable declines. The Center for Automotive Research warns these tariffs could disrupt automobile production, increase vehicle prices by thousands of dollars, and potentially lead to job losses due to the U.S. automotive industry’s heavy dependence on imported components, which totaled $474bn in 2024. While Trump justifies the measure as a way to spur domestic manufacturing growth and create jobs, industry experts note that the complex global automotive supply chain means even American-made vehicles contain significant percentages of foreign parts, potentially undermining the policy’s stated objectives and straining relations with key trading partners like Mexico, Japan, South Korea, Canada, and Germany.
Hong Kong Stock Connect recorded a net inflow of HK$8.37bn this week, of which China Merchants Bank (3968) recorded the largest net inflow of HK$1.58bn, followed by Meituan (3690); Xiaomi Group (1810) recorded the largest net outflow of HK$440mn, followed by Alibaba (9988).
Cheung Cho Shing, Joseph is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
