Pop Mart shares suffer setback but analysts still bullish on Labubu maker’s growth

[SINGAPORE] Analysts are still bullish on Chinese toy company favourite – Pop Mart International Group – despite its recent share price plunge, in view of its sustained popularity as an intellectual property (IP)-centric company.

The Labubu craze has sent Pop Mart’s shares up by more than 170 per cent since the start of the year, though the counter slid over 6 per cent on Friday (Jun 20). The shares last traded at HK$252.20 on Tuesday.

The tumble follows a news report by People’s Daily, the flagship newspaper of the Chinese Communist Party, which called for stricter regulations for “blind cards” and “mystery boxes”, as they encourage addictive behaviours among minors.