Pop Mart shares dive despite soaring profit as investors fear Labubu dependence

Labubu figures are displayed at Pop Mart’s Skullpanda pop-up shop in New York City on December 12, 2025.

Photo: Reuters Chinese toymaker Pop Mart reported strong annual growth in revenue and net profit for 2025, but not enough to alleviate investor fears that the company remains too reliant on the Labubu phenomenon.

Annual revenue jumped 184.7 per cent from a year earlier to 37.12 billion yuan (US$5.4 billion), while net profit surged 284.5 per cent to 13.08 billion yuan, the company said on Wednesday.

However, its Hong Kong-listed shares plunged 22.5 per cent to HK$168.30 on Wednesday, marking the biggest drop since April 2025. “We think Pop Mart’s 2025 revenue and earnings growth have likely missed the market’s consensus estimate, with material slowdown in the fourth quarter amplifying investors’ concern on the durability of top IPs [intellectual properties],” said Jeff Zhang, an equity analyst at Morningstar. “A pullback in dividend payout ratio to 25 per cent in 2025 from 35 per cent in 2024 is another negative factor.

We think it has likely missed buyside consensus for 2025, with conservative growth guidance for 2026 weighing on investors’ confidence.” The company said 17 IPs recorded sales of more than 100 million yuan in 2025.

Revenue from The Monsters, which includes Labubu, soared 365.7 per cent to 14.16 billion yuan from a year earlier. “We think the Labubu frenzy has yet to cease, as The Monsters IP revenue grew over 350 per cent in 2025,” Zhang said. “Accordingly, Pop Mart’s reliance on The Monsters and Labubu lingers, with a 38 per cent mix of revenue, rising from 35 per cent in the first half of 2025.” Morningstar expected it to take more time for Pop Mart to effectively diversify across different IPs, Zhang added.

A figure of Pop Mart property Molly is photographed at Art Park in West Kowloon Cultural District on January 24, 2026.

Photo: Edmond So Pop Mart said it aimed to maintain a growth rate of no less than 20 per cent this year, by continuing to increase investment in Labubu and launching more products.

Labubu would continue making global appearances, including the World Cup in June and the 100th Macy’s Thanksgiving Day Parade in the US in November, it said.

The company also planned to release a line of small home appliances with Chinese e-commerce firm JD.com next month, and would roll out a dessert business at its physical stores in the first half of the year.

Wang Ning would remain acting chairman and CEO, the company added

原文链接: 南华早报