gamemaniabingo| Big Bank Rating| UBS: Raise Bubble Mart target price to HK$48, overseas expansion may become a second growth engine

UBS published a research report stating thatgamemaniabingoIn its report in September last year, the bank continued to be optimistic about the development of Bubble Mart's products in the global market. In January this year, it listed the company as its first choice in its report. UBS raised its adjusted earnings per share by 12% to 17% for 2024 to 2026, respectively, as the bank is more optimistic about Bubble Mart's overseas business expansion opportunities and believes that domestic sales will be resilient supported by category expansion.

The bank believes that potential stock price catalysts include accelerating store expansion in the United States, Thailand and other ASEAN countries, the release of Bubble Mart mobile games, and the launch of new product categories or intellectual property (IP). The report predicts that overseas expansion will become Bubble Mart's second growth engine, and is optimistic that the company will use its IP redemption capabilities, omnichannel strategy and improve supply chain productivity. In overseas markets, UBS believes that Bubble Mart can use social media through partnerships with celebrities and KOL, thereby gaining the favor of young consumers.

UBS set its target price to 31gamemaniabingo.3 HKD was upgraded to HKD 48, maintaining the "Buy" rating.