Shares in Chinese toymaker Pop Mart International Group Ltd. rebounded sharply on Wednesday, climbing 10% in afternoon trading after the company reported a near-400% surge in net profit, fueled by booming global demand for its popular Labubu dolls.
The Beijing-based company posted first-half revenue of 13.88 billion yuan ($1.93 billion), up 204% year on year, while net profit soared 396.5% to 4.57 billion yuan. The results exceeded Pop Mart’s earlier forecast of at least 200% revenue growth and 350% profit growth.
The company’s quirky Labubu plushies — known for their “ugly-cute” design — have become a global sensation, spotted with celebrities like Rihanna and Blackpink’s Lisa. CEO Wang Ning said the firm is on track to hit its 2025 revenue target of 20 billion yuan, adding that 30 billion yuan this year “should also be quite easy.”
Analysts noted sharp market volatility, with some attributing the rally to short-sellers covering positions in a relatively thin market. Others pointed to domestic profit-taking and growing interest from global institutional investors betting on China’s consumption growth.
Still, risks remain. Chinese state media recently called for stricter oversight of blind-box toys, Pop Mart’s signature product, while analysts at Morningstar cautioned that consumer tastes could shift quickly.
Despite uncertainties, Pop Mart’s stock has surged more than 200% in 2025, with overseas revenue — particularly in Asia-Pacific and the Americas — growing at triple-digit rates. The company also announced a new miniature Labubu launch this week.