0537 GMT - Investors are disappointed at Pop Mart's dividend pullback, Morningstar analyst Jeff Zhang says. The toy maker's shares plunge 15% to HK$184.40 following strong annual results. Pop Mart's dividend payout ratio dropped to 25% in 2025 from 35% in 2024. Meanwhile, Zhang thinks Pop Mart still relies heavily on the Monsters series, which includes Labubus, as it accounted for 38% of 2025 revenue, up from 35% in 1H. "We still expect a longer duration for Pop Mart to effectively diversify across different IPs," he writes in a note. Pop Mart also plans to reallocate unutilized net proceeds from its IPO for IP acquisitions to expand overseas. It makes sense to move proceeds to "more urgent needs," the analyst adds. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

March 25, 2026 01:37 ET (05:37 GMT)

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