On April 29, Chinese designer toy company POP MART (HKEX: 9992) closed at HKD 197.90 per share, pushing its total market capitalization past HKD 265 billion (approximately USD 33.9 billion), setting a new all-time high.
POP MART released its Q1 2025 financial report on April 22. In the week following the release, buoyed by strong earnings, the launch of new products, surging international demand, and several major institutions raising their target prices, the stock rose an additional 12.5% on top of its previous historical high.
LABUBU Goes Viral Worldwide, POP MART App Tops US App Store Shopping Chart
Recently, POP MART’s IP LABUBU launched its third-generation soft vinyl plush series, “High Energy Ahead,” which has garnered tremendous global popularity.
LABUBU is part “The Monsters” series. In his 2024 annual letter, POP MART Chairman and CEO Wang Ning specifically highlighted LABUBU’s global breakout last year (2024), which drove The Monsters revenue to soar by 726.6% year-on-year, surpassing RMB 3 billion [approximately USD 414.5 million]. The series’ share of group revenue jumped from 5.8% in 2023 to 23.3%, making it the company’s largest IP.
Following the launch of the new LABUBU products, POP MART’s offline stores overseas saw long queues, including locations in Los Angeles, London, and Harajuku in Tokyo.
On April 25, the POP MART official app surged 114 spots in a single day on the US App Store, reaching No. 4 overall among free apps and topping the Shopping category.
Q1 Overseas Sales Soar Nearly Fivefold, Company Overhauls Global Structure
On April 22, POP MART announced its unaudited Q1 2025 results, showing a 165%-170% year-over-year increase in total revenue compared to Q1 2024. Revenue in the Chinese Mainland grew by 95%-100%, while overseas revenue surged by 475%-480%.
As the share of overseas revenue continues to climb, the group announced in mid-April a comprehensive upgrade to its global organizational structure. Regional headquarters will be established in the Greater China Region, the Americas, Asia-Pacific, and Europe. Wen Deyi, Senior Vice President of POP MART Group, will also serve as Co-COO, jointly overseeing global operations with Si De. Wen Deyi will manage operations in the Asia-Pacific and Europe, while Si De will oversee the Greater China Region and the Americas.
Multiple Institutions Bullish on POP MART’s Future Outlook
Goldman Sachs: POP MART delivered solid Q1 performance. Strong offline growth came as a positive surprise. Looking ahead, Q2 growth visibility is relatively high. Sales momentum for its IP products remains strong, and the launch of new LABUBU products is expected to act as a catalyst.
Bank of America Securities: POP MART’s proprietary IP, innovative design, and products are expected to continue winning consumer favor. The company recently priced the new LABUBU series in the US at USD 27.99, a 27% increase over the previous series. This price hike demonstrates the limited impact of tariffs and the group’s ability to pass on the costs of tariffs.
Morgan Stanley: Forecasts a year-on-year sales increase of around 100% in Q2, with growth tapering to around 50% in the second half, driven by the launch of new LABUBU products, restocking of popular items, and continued overseas expansion. POP MART’s IP product flywheel continues to spin rapidly, creating a halo effect that fosters fan loyalty and promotes better cross-selling between IPs and products.
UBS: LABUBU’s popularity in the US is on the rise, as evidenced by Google Trends and increasing fan engagement per post on Instagram.
Citibank: POP MART’s strong overseas revenue is primarily due to a low base and robust sales of new products. Given ongoing tariff concerns, the company is expected to accelerate supply chain diversification and raise prices to offset potential tariff increases in the US, while prioritizing expansion into other markets.
| Image Credit: POP MART official website
| Editor: Anne
