The three new consumption sisters surged in the afternoon, with the highest increase exceeding 16%, and their first-quarter net profit nearly matching the entire year's total last year.

Ask AI · Is the explosive performance of the “New Consumption Three Sisters” attributed to the rise of emotional consumption among Generation Z?

On the afternoon of March 24, the new consumption sector in the Hong Kong stock market showed outstanding performance. As of 14:53 on the same day, the three leading stocks collectively known as the “New Consumption Three Sisters” surged: Laopou Gold (06181.HK) rose by 16.29% to HKD 649.5 per share; Mixue Group (02097.HK) increased by 7.75% to HKD 347.6 per share; and Pop Mart (09992.HK) climbed by 6.82% to HKD 216 per share.

The core driving force behind this round of market performance may stem from strong fundamental support. On the news front, at noon on March 24, Mixue Group was the first to release its annual announcement for 2025, presenting a robust growth report: full-year revenue reached 33.56 billion yuan, a year-on-year increase of 35.2%; annual profit was 5.927 billion yuan, up 33.1%; gross profit was 10.452 billion yuan, growing by 29.7%.

The day before, Laopou Gold had already disclosed its annual performance for 2025, showcasing an even more rapid growth momentum. The financial report indicated that in 2025, Laopou Gold’s sales performance was approximately 31.375 billion yuan, a year-on-year increase of 220.3%; operating revenue was about 27.303 billion yuan, up 221%; gross profit was around 10.274 billion yuan, growing by 193.4%; and pre-tax profit was about 6.384 billion yuan, increasing by 228%.

Even more impressively, the report also mentioned that sales in the first quarter of 2026 are expected to reach 19-20 billion yuan, with net profit reaching 3.6-3.8 billion yuan. Based on this calculation, the net profit for just the first quarter is already equivalent to 73.9%-78% of the total net profit for 2025.

In addition, as a leader in the trendy toy sector, Pop Mart has not yet released its complete annual report, but data for the first half of 2025 already show strong growth. Financial data reveal that in the first half of 2025, the company achieved revenue of 13.876 billion yuan, a year-on-year increase of 204.4%, with net profit attributable to the parent company at 4.574 billion yuan, a significant year-on-year growth of 396.49%. Earlier disclosed data for total core sales in 2025 showed that global sales of all IP and all product categories exceeded 400 million units, with sales of THEMONSTERS products surpassing 100 million units globally.

The explosive performance of the three leading companies may be rooted in the rise of consumer sovereignty among Generation Z. Huayuan Securities’ research report points out that as China’s generational structure changes, a new generation of consumers represented by Generation Z (those born from 1995 to 2010) is gradually gaining decision-making power in consumption, and their consumption behavior is systematically changing China’s traditional consumption model.

Public reports indicate that the scale of the emotional consumption market in China has grown from 1.63 trillion yuan in 2022 to 2.31 trillion yuan in 2024, expected to reach 2.72 trillion yuan in 2025, and is projected to exceed 4.5 trillion yuan by 2029. More than 90% of young people recognize “emotional value,” and nearly 60% are willing to pay directly for it.

Shanghai Securities analysis points out that as per capita GDP, disposable income, and the proportion of Generation Z population increase, the young demographic is transitioning from “functional satisfaction” to “emotional resonance.” Emotional consumption scenarios such as gold and jewelry IP collaborations and trendy toys from the anime genre are rapidly expanding, and emotional connections are reshaping the logic of consumer choice.

Currently, international investment banks are reassessing the valuation logic of new consumption leaders. Citibank, in a research report released in February this year, stated that Laopou Gold is the preferred stock in China’s jewelry sector, giving a target price of HKD 1119 based on a projected 24 times price-to-earnings ratio for 2026, with a “buy” rating.

Citibank noted that the preference of high-net-worth consumers for gold as a collectible is very beneficial for Laopou’s development prospects. It also believes that the over 2 million high-net-worth families in China provide significant potential for the VIC (Very Important Customer) business that Laopou launched last year.

For Pop Mart, Citibank also gives a “buy” rating with a target price of HKD 415. Citibank believes that Pop Mart’s diversified strategy centered around IP can enhance its ability to withstand the cyclical risks of IP, and as the next hit IP is launched and non-LABUBU IP becomes popular in overseas markets, investor confidence is expected to strengthen.

(Disclaimer: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk based on this.)