Movement Alert|POP MART Drops 3.15% in Regular Trading, Ongoing Pressure from Overseas Revenue Decline and Inventory Buildup

Market Focus
10/02

On October 2, POP MART fell 3.15% in regular trading, trading at 147.8 HKD/share, with turnover of HKD 193 million.

The decline reflects continued market digestion of the company's interim results. The H1 report revealed overseas revenue fell 11.1% year-over-year, while its flagship IP THE MONSTERS family saw revenue decline 7.5%. Inventory turnover days extended sharply from 123 to 201 days, and operating cash flow contracted significantly from RMB 5.98 billion to RMB 3.64 billion. Multiple institutions have since lowered full-year earnings forecasts, with one major broker downgrading the stock to neutral, citing an uncertain overseas adjustment timeline. Although management announced a RMB 2-5 billion share buyback plan and domestic revenue maintained 47.3% growth, investors remain cautious about the post-LABUBU era as the company's market capitalization has shrunk approximately 20% from the start of the year. CEO Wang Ning characterized the current period as an adjustment year, signaling that revenue growth is no longer the primary objective.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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