Financial Results Strong but Stock Price Plummets - Pop Mart Under Market Scrutiny

This article is reprinted from Qianjiang Evening News

Yesterday afternoon, Hong Kong stocks’ Pop Mart suddenly experienced a sharp plunge, with the decline rapidly expanding to over 20%. During trading, it even dropped to HKD 165.6, a decrease of more than 23.75%. By the close of the Hong Kong market, its stock price was HKD 168.3, down 22.51%.

On March 25, Pop Mart International Group released its 2025 financial report. In 2025, Pop Mart’s revenue reached 37.12 billion yuan, a year-on-year increase of 184.7%, and adjusted net profit was 13.08 billion yuan, up 284.5% year-on-year. The LABUBU family generated revenue of 14.16 billion yuan. In the Chinese market, full-year revenue was 20.85 billion yuan, a 134.6% increase; in the Asia-Pacific region, revenue was 8.01 billion yuan, up 157.6%; in the Americas, revenue reached 6.81 billion yuan, a 748.4% increase; and in Europe and other regions, revenue was 1.45 billion yuan, up 506.3%.

However, its impressive performance was not recognized by the capital market. Hong Kong stocks staged a strange “performance versus stock price” divergence, prompting the market to reassess the growth logic and potential risks of this Chinese trend toy leader. The core reason behind this is market concerns over the company’s sustainable growth and valuation battles. Some analysts pointed out that the reliance on a single IP has become prominent, with market worries that the popularity of this core IP may peak, potentially affecting the company’s long-term growth. Additionally, some institutions’ expectations for performance were not met, combined with previous large stock price increases and high valuations, leading to profit-taking and amplifying stock price volatility, creating a market sentiment of “profit-taking exhausted.” Furthermore, the growth pressure under a high base cannot be ignored: the explosive growth in 2025 has set a high base for 2026, with market concerns that the company’s growth rate may slow significantly next year. Whether the explosive growth in plush toys can be sustained, the profitability of overseas expansion, and the stability of the IP pricing system in the secondary market are also potential risks attracting market attention. Moreover, increasing industry competition and changing consumer trends pose challenges to Pop Mart’s future development.

The short-term plunge in stock price essentially reflects the market’s reassessment of the company’s growth logic, rather than a denial of its performance. For Pop Mart, the explosive growth over its fifteenth anniversary is just a new starting point. Whether it can resolve its reliance on a single IP, maintain growth momentum in new categories, and improve overseas expansion efficiency will be key to its long-term development.

Our reporter, Yu Yebo