Updated
Updated · CNBC · Aug 21
Pop Mart Shares Drop 4% as Overseas Sales Slide and Citi Cuts Target to HK$198
Updated
Updated · CNBC · Aug 21

Pop Mart Shares Drop 4% as Overseas Sales Slide and Citi Cuts Target to HK$198

3 articles · Updated · CNBC · Aug 21

Summary

  • Pop Mart fell more than 4% in Hong Kong after first-half results showed overseas weakness and prompted Citi to lower its price target to HK$198; the stock last traded down 3.9% at HK$147.70.
  • 17.17 billion yuan in first-half revenue marked 23.8% year-over-year growth, but that was driven by China, where sales jumped 47.3%, masking declines of 9.7% in Asia-Pacific ex-China and 16.5% in the Americas.
  • 11% overseas sales decline left results below Citi's expectations, with the bank pointing to inventory, supply-chain, warehousing, logistics and store-operation problems in global markets.
  • 2026 now looks tougher: Citi forecasts group revenue will fall 8% year over year, and management sees its original 20% growth target as difficult to meet amid rising competition and greater-than-expected challenges.

Insights

With Labubu's global hype cooling, will Pop Mart's pivot to a Sony movie and theme parks save its international ambitions?
Why are international consumers suddenly rejecting Pop Mart's toys while mainland China's obsession only grows stronger?