Labubu propels Pop Mart into HK$300 billion club on Hong Kong market

Pop Mart International, the Chinese toymaker that thrives on a stable of trendy characters, eclipsed HK$300 billion (US$38.3 billion) in market capitalisation on Thursday, putting it in elite company on the Hong Kong stock market.

Shares of the Beijing-based firm rose by as much as 6 per cent to a record HK$229, making Pop Mart the 27th most valuable Hong Kong-listed company, according to Bloomberg data. Tencent Holdings, valued at HK$4.8 trillion, was the biggest, followed by Agricultural Bank of China at HK$2.1 trillion. Pop Mart ended the day up 3.3 per cent at HK$223.20, for a value of HK$299.7 billion.

JPMorgan Chase initiated coverage of Pop Mart with a rating of overweight and set its price target at HK$250 in a report this week. That was the most bullish prediction among the 43 analysts covering the toymaker, according to Bloomberg data. China Galaxy International expected the stock to hit HK$249.60, while Morgan Stanley predicted HK$224.

Pop Mart’s global revenue would surge by more than 150 per cent this year and it would deliver compound annual growth of 42 per cent through 2027, JPMorgan said. The gross merchandise value of the Labubu series could reach 14 billion yuan (US$1.9 billion) in two years, it added.

Morgan Stanley shared a similar view, projecting that the Labubu IP would underpin Pop Mart’s global expansion. A fast-growing supply chain in Vietnam and American consumers’ willingness to accept price increases

both signalled the resilience of the business and could help to mitigate the impact of US tariffs, the investment bank said in a report last week.