This earnings report from Pop Mart left me stunned. Revenue was RMB 17.173 billion, up 23.8%; net profit was RMB 5.038 billion, up 10.1%. The numbers aren’t too bad, but the market’s expectations were higher. They didn’t meet them—its stock price dropped more than 8% straight away, and it’s been cut in half from its peak. It’s really, truly miserable.
Wang Ning, on the other hand, is genuinely candid. He openly admits that last year’s surge had a luck component. LABUBU’s share is also declining. Then, he turned around and announced a share buyback plan worth RMB 2 to 5 billion. Goldman Sachs is still pouring cold water, saying demand is soft and inventory is running high. But the offline reality is totally flipped: the “Star” characters sold out in seconds, and second-hand reselling premiums are up 13 times. Even Duan Yongping says that store visits show business is doing exceptionally well. So who should you trust? I’m confused too.
The buyback is real money—at least the boss has some confidence. But growth rates and inventory are still two hurdles ahead. Whether there can be another breakout hit after LABUBU is the most urgent question for what comes next; the “Star” characters are just a sign, for now. Today it rebounded 4% to HK$155. Sentiment is recovering, but getting back in one go may be hard.
Wang Ning, on the other hand, is genuinely candid. He openly admits that last year’s surge had a luck component. LABUBU’s share is also declining. Then, he turned around and announced a share buyback plan worth RMB 2 to 5 billion. Goldman Sachs is still pouring cold water, saying demand is soft and inventory is running high. But the offline reality is totally flipped: the “Star” characters sold out in seconds, and second-hand reselling premiums are up 13 times. Even Duan Yongping says that store visits show business is doing exceptionally well. So who should you trust? I’m confused too.
The buyback is real money—at least the boss has some confidence. But growth rates and inventory are still two hurdles ahead. Whether there can be another breakout hit after LABUBU is the most urgent question for what comes next; the “Star” characters are just a sign, for now. Today it rebounded 4% to HK$155. Sentiment is recovering, but getting back in one go may be hard.