Labubu-maker Pop Mart shares fall as Morgan Stanley cuts it from list

Beijing – Sharing Pop MartThe Chinese toy company behind the recent crash of Labu, continued to tumble on Friday after Morgan Stanley withdrew the title of a development list.

The actions listed in Hong Kong of Pop Mart were down the last more than 5%, extending their slide from the previous session when they had dropped by 5.3%. This has put the high -flying stock on the right track for its first negative week since early May – with losses of more than 13% so far. His up -to -date earnings are over 160%.

Morgan Stanley said on Wednesday evening that he replaces Pop Mart with the insurance company PICC P & C In the company’s China and Hong Kong focus list.

The investment bank did not explain why it deleted Pop Mart shares. The company on June 10 had increased its price of courses on the toy company at 302 dollars in Hong Kong ($ 38.47), against 224 HKD, on the expectations that Pop Mart still had room to develop in the long term.

“We believe that the market has fully taken into account the exponential growth of Pop Mart in 2025, but may not have a strong conviction on long -term prospects,” said analyst in action Dustin Wei and a team in the June 10 report.

“That said, given its noble evaluation, we do not expect this level of outperformance to continue in the coming quarters,” said the report.

Pop Mart actions reached a record of 283.40 HKD on June 12.

The Beijing-based toy company quickly spread abroad with online sales platforms and physical stores, including in the United States and the United Kingdom

Pop Mart first gained popularity with its concept “Blind Box”, in which consumers buy unmarked boxes – which can cost about $ 5 to $ 10 each – to have a chance to get a single figurine and build a collection.

In recent months, the company’s “Labu” toys of the company with an elf -shaped character has become a global phenomenon, even attracting the attention of fashion and culture New York Magazine And The New York Times.

Pop Mart has also published Labubu plush toys, pillows and related goods to enter the request. A 4 -feet high labu Sold for the equivalent of $ 170,000 During an auction in Beijing earlier this month. Many of the most affordable versions of the figurine are subsequently out of stock in continental China.

“We have seen certain trends like that before … There seems to be always a cute thing that people must have,” Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies, CNBC said on Friday. The company helps foreign brands – such as Vitamix and is clinical – for sale online in China and other parts of Asia.

He stressed interest last year in Capybara plush toys. Chinese retailer MinisoWho also has stores in the United States and other countries, was one of the main toilet sellers.

Cooke saw Pop Mart as “lucky than anything”, although he stressed that this reflects an increasing interest in toys not only for children but also for adults.

Indicating the flirtatious popularity of his toys, Pop Mart Sales abroad In 2024, the company’s overall sales have already exceeded in 2021.

The company declared total, mainly national sales of 4.49 billion yuan ($ 624.6 million) in 2021. In 2024, sales abroad exceeded it to reach 5.1 billion yuan, up 373% compared to a year ago, while continental China sales reached 7.97 billion Yuan.