Shares of Pop Mart International Group Limited climbed 9.2% to close at HK$197.40 on Tuesday in Hong Kong, as investors responded favorably to news of a share buyback announced by the company. The boost in share price follows several months of declines amid concerns over product demand and slower sales growth.
Trading activity in Pop Mart was robust after the company disclosed that it had repurchased 1.4 million shares on January 19, totaling HK$251 million. This marks Pop Mart’s first buyback since February 2024. The move comes after the stock retreated more than 40% from its August high, prompting management to signal confidence in the company’s valuation.
Positive sentiment extended beyond Hong Kong, with POPMART80 DRs issued by KTB in Thailand rising 8.33% during afternoon trading to THB 7.80 per share.
Pop Mart, a Chinese toy company listed in Hong Kong, has recently faced investor concerns regarding the sustained demand for its signature Labubu toys and questions regarding the stability of recent sales growth. Market data from late last year indicated that resale prices for certain Labubu plush series fell sharply, with averages dropping from RMB1,478 to RMB632, and some items trading below their original retail prices. Pricing on limited “hidden” versions also declined, moving from RMB800 at release to RMB264 by month-end.
According to Morgan Stanley analysts, this share buyback could help renew investor interest, although the company has not outlined any additional plans to continue repurchasing shares.
