Superficially, anything new, especially a hot new cultural phenomenon, can look like a fad, a bubble that will soon pop. And many, perhaps most, do eventually fizzle. But some take hold and become long-term, perhaps even permanent, parts of our culture. Disney and Barbie are two big-time examples. Can Pop Mart (PMRTY) become another? Fad or trend isn't science. It's a lot of art. And PMRTY, a Chinese figurine superstar, is painting the right strokes. It's broadening its product and going global.
Pop Mart reported stronger-than-expected third-quarter results, signaling sustained sales momentum which belied its shares' recent weakness.
This summer, the monster toy Labubu charmed the world with its cute and chaotic energy, commanding resale markups that would make day traders or Rolex flippers blush. Now, there are signs that the secondary market is losing steam — scalpers are panic-selling, watching prices crater by half or more.
Pop Mart International, the maker of the wildly popular Labubu plush dolls, is set to join the main Hong Kong stock market index after a ferocious rally.
Wang Ning, billionaire founder of Chinese toy maker Pop Mart International Group, said the company could “easily” reach 30 billion yuan ($4.2 billion) in sales this year, after it reported sizzling first half results that included a nearly 400% rise in profit thanks to a global frenzy over its Labubu character.
Pop Mart executives said on Wednesday they are optimistic about opportunities for the firm's proprietary art toys, including smash hit ugly-cute Labubu doll, to star in animated films and theme park attractions.
China's soft power is growing as its brands find global appeal. Boosting that soft power are ugly-cute plush toys — Labubus.
Pop Mart said it expects at least a 350% increase in profit for the first six months of 2025 and at least a 200% increase in revenue. The negative stock reaction may be a reflection of investors' conservative outlook on Pop Mart's sales growth, an analyst said.
Analysts say the fears of regulatory headwinds are overblown as Gen Zers and millennials, rather than young children, are Pop Mart's main consumer demographic. Local peers that focus on minors, on the other hand, will likely be "heavily impacted," one analyst said.
Hong Hao, Managing Partner, CIO at Lotus Asset Management, talks about where he's seeing opportunities in the China markets: biotech, bubble tea, and Pop Mart.
Chinese toy maker Pop Mart's shares continued to rally after its 2024 profit nearly tripled and as the craze for collectable toys led to stronger-than-expected guidance from management.