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Pop Mart's Net Profit Soars Nearly 400% in First Half; Labubu Generates 4.8 Billion Yuan in Revenue

TradingKeyAug 19, 2025 1:23 PM

TradingKey - On August 19, Pop Mart disclosed its financial results for the first half of the year, revealing significant boosts in both revenue and profit, driven by the global appeal of Labubu. Revenue surged about 200%, while profit surged close to 400%.

The data indicates that revenue reached 13.88 billion yuan, a 204.4% increase year-on-year, and net profit attributable to shareholders was 4.57 billion yuan, up 396.5%. The IP "The Monsters," featuring the star product Labubu, generated 4.81 billion yuan in revenue.

This year, overseas markets have been the primary engine for revenue growth. CEO Wang Ning reported in July that the international growth far exceeded expectations. Overseas revenue increased by 440% year-on-year to 5.59 billion yuan, with its share of total revenue rising from 22.8% to 40.3%. The Americas market saw an 1142.3% increase, while Europe and other regions grew by 729.2%. The number of retail stores in the Americas, which was only 10 in the first half of 2024, has grown to 41 this year.

The expansion into international markets continues, with Pop Mart stating in March its plans to open about 100 stores outside mainland China by 2025. A large store in Bangkok's iconic Iconsiam shopping center opened this month. Wang Ning anticipates that by 2025, the company's overseas sales could surpass those in China.

Another significant highlight is the 4.81 billion yuan revenue from Labubu within "The Monsters" IP, which accounts for 34.7% of total revenue, solidifying its status as a cash cow and showcasing the company's strong capabilities in IP incubation and hit product creation. Last year, this IP's revenue share was just 13.7%.

Moreover, the high demand for the Labubu third-generation soft vinyl plush "High Energy Alert" series led to a staggering 1276.2% year-on-year increase in the plush product category, reaching 6.14 billion yuan and becoming the largest category, comprising 44.2% of total revenue.

In addition to popular IPs, Pop Mart's emerging IPs have also shown impressive performance. The Twinkle Twinkle IP generated 390 million yuan in six months. Morgan Stanley noted in a report that during their visit to the Pop Mart International Trendy Toy Expo, the Twinkle Twinkle booth attracted large crowds, with products selling out quickly. They predict this IP could significantly contribute to the company’s sales in 2025 and beyond.

This month, Morgan Stanley published a research report expressing confidence in Pop Mart, forecasting that over the next 3-5 years, as the company taps into rich artistic resources across the US, Europe, Japan, and Southeast Asia, its IP and product range will become more culturally diverse. They believe Pop Mart's intrinsic value is underestimated, being much greater than its existing IPs suggest. Morgan Stanley maintains an "overweight" rating on Pop Mart (09992.HK) with a target price of 365 HKD, equating to a projected P/E ratio of 46 times this year. This represents nearly a 30% upside compared to the closing price of 280.8 HKD on August 19.

This year, Pop Mart's stock price has surged more than 200%, and its market capitalization has surpassed industry giants like Mattel, the maker of Barbie, and Sanrio, the parent company of Hello Kitty.

Reviewed byJane Zhang
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