Overview
- Pop Mart shares fell as much as 8.9% in Hong Kong on September 15, marking the steepest intraday drop since April.
- J.P. Morgan lowered its rating to Neutral and cut the price target by 25% to HK$300, flagging an expensive valuation and limited visibility on drivers of growth.
- Demand signals have softened as Labubu’s secondary‑market premium narrows, with some variants down up to 37% in recent months.
- Despite the pullback, first‑half results were strong with revenue tripling and profit up about 396%, and non‑Labubu lines exceeding ¥1 billion in Q2 sales.
- Analysts say Pop Mart plans an animation, a new Labubu version and interactive toys before Christmas, while the brand also entered Mexico with weekly online drops that could face prospective tariff headwinds.