9992: Morgan Stanley remains bullish on Pop Mart (Overweight rating, target price HK382.00), believing the recent stock price pullback (down 24% from the August peak) is due to the market misinterpreting the company’s strategy to increase supply. Pop Mart is currently at a strategic turning point, shifting from 'deliberately creating scarcity' to 'managing scarcity to expand the base.' The market is panicking because old metrics used to measure scarcity are no longer effective, but it’s overlooking the more important long-term logic: the company is increasing supply to capture broader, healthier real demand. The report suggests that the current stock price drop presents an attractive buying opportunity. The supply increase is aimed at combating scalpers and improving product availability, thereby expanding the customer base and popularizing its IP, rather than signaling weak demand. The 'failure' of short-term tracking metrics is actually evidence of this strategy’s success, not a deterioration of fundamentals.