HK Movers | China’s Pop Mart Gains 4% on Earnings Hopes as Investors Eye Growth Beyond Labubu

Pop Mart’s shares climbed on Tuesday after the Chinese toymaker highlighted strong operating momentum at its annual gathering, reinforcing investor confidence ahead of earnings.

The company’s Hong Kong-listed stock rose 4% in Tuesday trading. Shares are now up more than 43% year to date.

Founder Wang Ning said at the company’s annual party on Friday that registered users had surpassed 100 million globally by the end of 2025.

Sales of Labubu, the group’s flagship intellectual property (IP), exceeded 100 million units last year, while total sales across all IPs topped 400 million units. Pop Mart also operated more than 700 stores worldwide.

“In a time of profound change for humanity, the pursuit of beauty and design is more important than ever,” Wang told staff at the event. “We should take on a greater role – offering spiritual comfort to our times and helping more people find meaning in life.”

Founded in Beijing in 2010, Pop Mart has come to embody what many describe as “emotional value” – the idea that consumers are buying comfort, identity and small moments of joy, not just toys – a trend that has gained traction among younger buyers facing uncertain job prospects and intense competition.

The brand has also drawn endorsements from international celebrities, including K-pop star Lisa of Blackpink and former England footballer David Beckham.

Shares surged to a record last August after strong interim results and new product launches, but later retreated amid rising competition and softer consumer spending in China.

Analysts said Pop Mart’s stock direction would depend on whether IP growth could broaden beyond Labubu. Photo: Getty

The recent rebound appeared to be a pre-earnings move following a prolonged pullback and lingering concerns over growth, said Kenny Ng Lai-yin, a strategist at Everbright Securities International.

“With earnings approaching, some of that scepticism may ease, especially if the last quarter still delivers strong growth,” Ng said. The company is expected to publish its 2025 earning results at the end of March.

Looking ahead, the stock’s direction would depend on how much confidence the results restore and whether IP growth could broaden beyond Labubu, he added.

“Overall, we think Pop Mart will continue to diversify its IP portfolio to moderate the reliance on Labubu and the Monsters,” said Jeff Zhang, equity analyst with Morningstar.

A China Securities report released on Sunday showed sales from Pop Mart’s live streaming channel on short-video platform Douyin jumped 88 per cent month on month and 173 per cent year on year in January, with newer IPs gaining traction while established IPs continued to anchor demand.

“The global expansion should persist as well, with North America, Europe and the Middle East being the key regions for new store opening,” said Zhang.

He added that Pop Mart planned to work with more overseas manufacturers in the coming years.

“The increased production capacities outside China should optimise logistics costs and ease the tariff impact,” Zhang said.