Shares in Pop Mart, the Chinese manufacturer of Labooboo toys popular on social networks, jumped after Apple CEO Tim Cook visited an exhibition of plush monster trinkets in Shanghai. The visit drew attention to the company and temporarily supported its stock price. The stock remains about 22% cheaper than its peak levels in August.

Details

Pop Mart shares showed the biggest growth in almost two months at trading in Hong Kong on October 14, after Apple CEO Tim Cook visited an exhibition of these toys as part of his tour in China, Bloomberg writes. The company's papers jumped by 6.1%, becoming one of the leaders of the Hang Seng China Enterprises index, the agency notes. However, quotations remained volatile and by the close of the session the growth was reduced to about 0.8%.

The Apple CEO published a post on Chinese social networking site Weibo, saying he enjoyed watching designer Labubu Keixing Lun use the iPad Pro to create his characters.

Tim Cook's visit has sparked speculation about a possible collaboration between the two companies that could open up new areas of growth for Pop Mart, suggested Shen Meng, director at Beijing-based investment firm Chanson & Co.

What happens to a company's stock

Pop Mart's capitalization has risen 193% this year, but it has been virtually flat over the past three months as the hype around collectible toys has died down. Including Tuesday's gains, the company's stock price remains about 22% below its August high.

According to MarketScreener, the market generally maintains a positive view on this stock. Of the 33 analysts covering the company, 28 recommend buying its shares (Buy and Outperform ratings). Three advise holding (Hold) and one advises selling (Underperform). Pop Mart has an average target price of 330 yuan, implying a potential upside of about 25.5% from the last closing price on Oct. 14.

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

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