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.