Pop Mart shares dive despite soaring profit as investors fear Labubu dependence
Labubu and The Monsters series make up 38 per cent of 2025 revenue, while conservative growth guidance for 2026 weighs on confidence
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.