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Investing.com-- Pop Mart International, seller of the increasingly popular Labubu collectibles, saw its shares firm on Thursday after HSBC sharply hiked its target price on strong sales potential.
Pop Mart International Group Ltd (HK:9992) rose 2.2% to HK$252.80, outpacing a 0.4% drop in the Hang Seng index.
HSBC hiked its target price to HK$331.5 from HK$215.5, maintaining its Buy rating on the stock.
The brokerage sharply hiked its 2025 overseas revenue forecast for Pop Mart, by 34% to 14.33 billion yuan ($2 billion). The forecast represents year-on-year revenue growth of 183%, and comes just as Pop Mart’s flagship brand, Labubu, recently entered overseas markets.
Labubu was created a decade ago by Hong Kong artist Kasing Lung, who in 2019 agreed to let Pop Mart sell the figures in “blind boxes.” Blind boxes, which cost between $5 to $10 each, are unmarked, and give buyers a chance at acquiring a unique figurine.
The line was popular in Chinese markets, but recently skyrocketed in overseas popularity following appearances with celebrities such as K-pop star Lisa and British footballer David Beckham.
Earlier this month, a Beijing auction house sold a human-sized Labubu figure for a record-setting 1.08 million yuan ($150,250).
The increasing popularity of Labubu was a major sales driver for Pop Mart, while also pushing its shares up a staggering 580% over the past 12 months. Pop Mart is also trading up about 177% so far in 2025.
Still, Pop Mart’s shares tumbled last week after Morgan Stanley (NYSE:MS) removed the stock from its focus list. Separately, Chinese state media was seen calling for stronger regulation of the blind box toy model.