Shares of Chinese toy maker Pop Mart International Group Ltd. surged the most in nearly four months on Wednesday after CEO Wang Ning said the company could easily surpass its annual sales target and announced plans to launch a new mini Labubu doll, reported Bloomberg.
The stock climbed as much as 11% to HK$310.6, marking its highest level since the company went public in December 2020. Earlier losses of up to 4.7% were quickly reversed, despite some analysts warning about potential long-term demand for Pop Mart’s popular characters.
CEO PREDICTS HIGHER SALES AMID GLOBAL DOLL CRAZE
During an earnings call, Wang admitted that even he has struggled to predict earnings growth amid the global craze for Labubu dolls. “Earlier this year we aimed for 20 billion yuan ($2.8 billion), but now 30 billion yuan seems quite achievable,” he said. The new mini Labubu is expected to launch this week, though details remain limited.
STRONG REVENUE AND NET INCOME GROWTH
Pop Mart reported a 204% rise in revenue to 13.88 billion yuan for the first half of 2025, beating the average analyst estimate of 13.76 billion yuan. Net income jumped 397% to 4.57 billion yuan, highlighting the company’s rapid growth.
GLOBAL EXPANSION STRATEGY
The Beijing-based company is pushing ahead with its global expansion plans, capitalising on the international popularity of Labubus, plush toys that have become a pop-culture hit in Western markets, especially the US. Overseas revenue surged 440% to 5.6 billion yuan in the first six months of the year.
Pop Mart expects its total foreign store count to exceed 200 by year-end, up from 140 currently. Co-COO Moon Duk II said expansion will continue at pace in the US, while fellow co-COO Si De confirmed focus on this market over the next one to two years.
Analysts at Citigroup said Pop Mart’s expertise in intellectual property and overseas expansion is likely to support its growth in the second half of 2025. However, some analysts remained cautious, noting that the long-term popularity of Labubu dolls carries uncertainty.
FUTURE PLANS
The company plans modest store growth in China, adding no more than 10 new outlets this year, while focusing on improving performance at existing stores. Labubu’s success is partly due to the blind-box format, which keeps buyers curious and engaged. Revenue from The Monsters series, including Labubu, rose to 4.81 billion yuan from 626.8 million yuan a year earlier.
Pop Mart will continue to expand globally by opening stores in landmark locations, investing in its website and apps, and collaborating with international brands and artists.
This latest performance demonstrates Pop Mart’s ability to turn a toy craze into a profitable global business, even as analysts debate the sustainability of Labubu’s popularity.
– Ends