What on earth is a Labubu? Honestly, I’m still not entirely sure. But that hasn’t stopped friends of mine from snapping them up, apparently, it’s the trend, and everyone wants one. These tiny furry figurines have somehow become the must-have accessory, with queues outside Pop Mart stores and resale prices soaring. It’s all part of a global trend that’s sent the Chinese toy maker’s stock up over 500% in the past year. The hype is so real, Pop Mart is now worth more than Mattel, Hasbro and Sanrio combined. So, whether you get the hype or not, I thought it was time to take a closer look.
- Pop Mart’s blind-box toys like Labubu have sparked global hype, with Aussie fans queuing for hours just to get one.
- With revenue growing and profit soaring nearly 200% in 2024, overseas expansion is key. International sales now make up nearly 40% and are growing fast.
- Pop Mart’s share price reflects big expectations, but is it priced for perfection? According to Bloomberg’s Analyst Recommendations, PopMart has 41 buy ratings, 2 holds, and 0 sells
Explore PopMart shares (9992.HK)
The Basics
Pop Mart International is a Chinese collectible toy company that has taken the world by storm with its “blind box” figurines. Founded in 2010 by Wang Ning, the company pioneered selling sealed mystery boxes containing designer toys, turning a niche trend into a global craze.
“Labubus”, tiny furry figurines that have become popular bag accessories, are taking the world by storm. Popular among Gen Zs in particular, Aussies who are keen to get their hands on one of these elusive toys are even queuing up outside stores for hours before opening, with a thriving resale market making supply scarce. They retail at around AUD$32, but on the secondary market, prices have reached upwards of AUD$300. The company’s business model thrives on that scarcity and surprise. Fans line up for new releases, hunting for rare figures, and trading duplicates online. Right now, you can’t even buy a lububu (or so I’ve heard).
Social media, especially TikTok, has fuelled its rise, turning toy collecting into a lifestyle. Pop Mart has also expanded into other merchandise, plush toys, vending machines (Roboshops), and even a theme park in Beijing. Its viral appeal and direct engagement with youth culture have turned it from a niche player to a global brand.
Aside from Labubus and other popular collections such as SKULLPANDA and Crybaby, IP merchandising is another focal point for the company. At the same time, Pop Mart is looking to continue expanding its footprint in America, Southeast Asia, and Europe, following the success of its toys based on China’s animated movie, Ne Zha 2, which sold out mere days after its release.
Pop Mart has created a trend that has Gen Z going crazy, helping to explain why its stock is one of the hottest on the market and has risen over 500% in the last 12 months.
Competitor Diagnosis
Pop Mart doesn’t operate like traditional toymakers. Mattel, home of Barbie, has long focused on traditional toy sales for children, though it has lately leveraged its classic brands in new ways, most notably with 2023’s blockbuster Barbie film. This helped reinvigorate the Barbie brand and showcased Mattel’s valuable IP. However, Mattel’s overall growth remains modest, with shares up just 7% in the last year and is currently valued at around USD $6 billion.
Sanrio, the Japanese creator of Hello Kitty, is another competitor in the space that thrives on character IP merchandising, like Pop Mart. However, its model centres on licensing its cute characters across toys, fashion, and media. Hello Kitty has been a beloved global icon for decades, recently celebrating its 50th anniversary in 2024. Sanrio’s growth had been relatively slow until a recent uplift, with shares doubling in the past year amid renewed interest in character collaborations and strong post-pandemic consumer spending in Japan.
Still, even with Hello Kitty’s global brand power, Sanrio’s market cap of USD $11 billion is less than one-third of Pop Mart’s. At roughly USD $39 billion in market cap, Pop Mart is now more valuable than Mattel, Hasbro and Sanrio combined, with investors assigning it a far richer valuation on the expectation of rapid expansion. That’s a massive gap given Mattel’s multi-media empire produced the instantly iconic box office smash Barbie movie just two years ago, and Sanrio’s world-famous Hello Kitty. It begs the question: Can Pop Mart keep the momentum going? Investors clearly believe Pop Mart’s Gen Z-focused, hype-driven model can deliver far stronger growth than the established toy makers.
Financial Health Check
The global hype from Labubu and PopMart’s other plush toys has driven sales through the roof. In its 2024 results handed down in March, revenue doubled to 13.04 billion yuan (A$2.8 billion), and net income nearly tripled to 3.13 billion yuan (A$680 million). Gross margins were strong at nearly 67%, with significant contributions from Labubu and SkullPanda, while plush toy sales surged, up over 1,200%.
International sales were the bright spot, showing growth of 375% to make up nearly 40% of revenue. The company now operates in over 23 countries with more than 130 international stores and 2,000+ vending machines. With 46 million members in its loyalty program and growing presence in the US, UK and Australia, Pop Mart is quickly becoming a global player.
Pop Mart’s loyalty program counted over 46 million members in China by late 2024, a staggering fanbase that it is increasingly leveraging abroad. Markets like the US and Europe saw exponential growth: in the first quarter of 2025, Pop Mart’s Americas sales (including the US) were up almost 900% year-on-year, and Europe by over 600%, albeit from small bases. This momentum carried into Q1 2025 with management estimating 165–170% YoY revenue growth for the quarter.
Its share price reflects these stellar results. Shares have continued to hit record highs in 2025, soaring 160% so far this year, making it one of Hong Kong’s top performers. For the year ahead, growth looks set to continue, with revenue and net profit expected to both climb almost 80%.
Buy, Hold or Sell?
Pop Mart’s growth story remains strong. The company is combining viral demand, strong margins, and control of valuable IP. If management executes well, Pop Mart could evolve into a multifaceted entertainment franchise, helping it continue its growth into merchandise, media, and experiences like its theme park. The company is also likely to continue riding this Labubu popularity wave by collaborating with notable brands, like they have in the past with Coca-Cola and Vans.
With Gen Z and millennial collectors driving the trend, and an aggressive international rollout underway, including flagship stores across the US, Europe and Australia, the long-term outlook is promising.
However, it trades at a pretty rich valuation. The company’s growth trajectory and brand are impressive, but much of that promise is already baked into a $38 billion valuation, with a forward price-to-earnings ratio of 44x. This leaves little room for error: any slowdown in growth or a flop in a major product line could put shares in reverse. Rapid overseas expansion also brings its own execution challenges with the costs of building retail infrastructure across dozens of countries.
According to Bloomberg’s Analyst Recommendations, PopMart has 41 buy ratings, 2 holds, and 0 sells. However, given its recent run, the average analyst price target is HKD$207.05, marking a -7% downside from current levels.
Investors might want to wait for a better entry point or signs that its global expansion can sustain the hype. Pop Mart’s ability to drive demand and keep collectors buying means the stock is certainly one to watch, and while the collectible craze could continue, just be mindful that even the most adorable bubbles can burst if they grow too far, too fast.
Explore PopMart shares (9992.HK)
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*Data Accurate as of 30/05/2025
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