On September 26, Jinshi Data reported that Morgan Stanley's report pointed out that Pop Mart (09992.HK) and Juzi Biology (02367.HK) will continue to be in a profitable rise cycle in the next two years. Both companies are in their early penetration stage, so they are less affected by macro pressures in the mainland. Morgan Stanley pointed out that Pop Mart is expected to record a sales rise of over 60% in the third quarter. It is expected that the productivity of its overseas stores will rise in July and August compared to the previous quarter, driven by the flow of people during the summer vacation and the replenishment of popular products. Moreover, the speed of opening stores in the mainland and overseas should accelerate from the third quarter onwards. The bank believes that now is a good time for long-term investors to review their investment themes. The bank is confident in the company's sales results for the third quarter and believes that the new products launched in the fourth quarter and the first quarter of next year will provide support for the stock price. As for Juzi Biology (02367.HK), the bank pointed out that the company's target sales rise in the second half of the year is expected to reach 30% to 35%. The company stated that the sales growth in the third quarter roughly meets the plan, which is positive news, especially since the company did not carry out much promotion during the off-season.
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Morgan Stanley: Pop Mart and JuZiBiotech are in a profit upgrade cycle
On September 26, Jinshi Data reported that Morgan Stanley's report pointed out that Pop Mart (09992.HK) and Juzi Biology (02367.HK) will continue to be in a profitable rise cycle in the next two years. Both companies are in their early penetration stage, so they are less affected by macro pressures in the mainland. Morgan Stanley pointed out that Pop Mart is expected to record a sales rise of over 60% in the third quarter. It is expected that the productivity of its overseas stores will rise in July and August compared to the previous quarter, driven by the flow of people during the summer vacation and the replenishment of popular products. Moreover, the speed of opening stores in the mainland and overseas should accelerate from the third quarter onwards. The bank believes that now is a good time for long-term investors to review their investment themes. The bank is confident in the company's sales results for the third quarter and believes that the new products launched in the fourth quarter and the first quarter of next year will provide support for the stock price. As for Juzi Biology (02367.HK), the bank pointed out that the company's target sales rise in the second half of the year is expected to reach 30% to 35%. The company stated that the sales growth in the third quarter roughly meets the plan, which is positive news, especially since the company did not carry out much promotion during the off-season.