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Shares of Labubu maker hit record high: What's the reason?
20 Aug 2025

Shares of Chinese toy manufacturer Pop Mart International Group Ltd surged by as much as 14% today, following an announcement from CEO Wang Ning.

The company is likely to exceed its annual sales target and will soon launch a new mini version of its popular Labubu doll.

The stock hit HK$319.4, the highest since its December 2020 IPO, before closing at HK$316 after earlier losses of up to 4.7%.

Revenue jumped 204% YoY in H1 2025
Financial performance

In the first half of 2025, Pop Mart's revenue jumped 204% year-on-year to CNY 13.88 billion ($2.8 billion).

The figure beat the average analyst estimate of CNY 13.76 billion and surpassed last year's growth rate of 62%.

Meanwhile, net income skyrocketed by an impressive 397% to reach a whopping CNY 4.57 billion during this period.

Overseas revenue skyrocketed by 440%
Expansion strategy

Beijing-based Pop Mart is aggressively pursuing its global expansion strategy, capitalizing on the worldwide popularity of Labubus, plush toys that have become a cultural phenomenon in Western markets, especially the US.

The company's overseas revenue skyrocketed by 440% to CNY 5.6 billion in H1 2025.

Co-COO Moon Duk II revealed during an earnings call that the number of foreign stores is expected to exceed 200 by year-end from the current count of 140.

Concerns over long-term popularity
Market approach

Pop Mart is also exploring other ways to attract consumers, including phase-II of its theme park Pop Land, animations, and bakery stores.

However, some analysts remain skeptical about the long-term popularity of Pop Mart's top intellectual property such as Labubu dolls.

Morningstar Inc's Jeff Zhang said these items "still see high uncertainties on long-term popularity."

Stock price deemed expensive but not overvalued
Marketing tactics

The Monsters, the toy series that includes Labubu, generated revenue of CNY 4.81 billion compared to CNY 626.8 million in the same period last year.

The blind-box packaging strategy for many products has contributed to Labubu's popularity among customers.

Despite concerns over the sustainability of this trend, investment consulting firm Dante Research's Chen Da believes Pop Mart's stock price is expensive but not overvalued.