Chinese toy maker Pop Mart reported a sharp rise in revenue and profits thanks to the frenzied demand for Labooboo dolls. The viral success of the toy monsters has ensured that the company's stock price has risen more than 200% since the beginning of the year. At the current valuation, analysts see the stock's upside potential of about 11% more.

Details

Pop Mart's revenue rose 204% year-on-year to 13.9 billion yuan ($1.9 billion), according to its H1 2025 report. Net profit rose 397% to 4.6 billion yuan. By comparison, a year earlier, revenue growth was only 62%, Bloomberg notes .

The company's strong performance comes amid a global frenzy around Labooboo toys - characters with pointy ears and teeth that have become a cultural phenomenon in the US and Europe. Their popularity is supported by the format of sales in "blind boxes", when the buyer recognizes the design only after unpacking.

An additional impetus to Labubu's popularity was given by social media and the attention of celebrities. Among the fans of the toys are Lisa from the K-pop band Blackpink, singer Rihanna and former footballer David Beckham.

Labubu is part of Pop Mart's character line under The Monsters brand, which generated 4.81 billion yuan ($670 million), or 34.7 percent of total revenue, in the second quarter. The company's four other franchises, including the popular Molly and Crybaby series, generated more than 1 billion yuan each, Reuters specified.

What's going on with Pop Mart stock

In anticipation of the report, shares of Pop Mart on August 18 rose by more than 5% on the Hong Kong Stock Exchange (HKEX), coming out of a month-long consolidation, Bloomberg writes. However, on August 19, investors began to take profits - the securities closed trading down 1.4%.

According to TipRanks, the latest analyst rating on Pop Mart shares is "buy" with a target price of HK$312. The stock is now trading around $280, meaning analysts are laying down a potential upside of about 11% more from current levels.

The stock has already appreciated 213% since the beginning of 2025, and more than 1,000% since March 2024, when the company first reported strong results, Bloomberg writes.

This brings Pop Mart's market capitalization to HK$377.1 billion ($48.3 billion) - more than several global industry giants combined: Hasbro (makes Transformers), Mattel (Barbie) and Sanrio (Hello Kitty), notes the South China Morning Post (SCMP).

Context

Pop Mart was founded in 2010 by entrepreneur Wang Ning and started by selling Labubu toys invented by Hong Kong artist Kasin Lun. Now the company has 571 stores (40 opened in the first half of 2025) and almost 2,600 automated "robot" in 18 countries, writes Reuters.

Labubu toys have become a symbol of the so-called emotional value - simple joys at an affordable price, in demand among young people amid economic instability. Experts compare this to the Japanese kawaii culture, which spread in the 1990s during the crisis, SCMP notes.

The rapid growth also caused problems: counterfeits flooded the market, and secondary prices rose. In May, Pop Mart even had to suspend sales in London after buyers fought in queues, summarizes SCMP.

This article was AI-translated and verified by a human editor

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