Prime Highlight :
- Pop Mart shares surged as much as 10% after the company announced its first share buyback since early 2024, boosting investor confidence amid slowing demand for Labubu dolls.
- Analysts said the buyback could draw investors back into the stock and potentially pressure short sellers as sentiment improves.
Key Facts :
- Pop Mart repurchased 1.4 million shares for HK$251 million ($32 million) on Monday, according to a stock exchange filing.
- The stock remains more than 40% below its August peak, despite gaining about 109% in 2025.
Background :
Shares of Pop Mart International Group surged in Hong Kong on Tuesday after the Chinese toymaker announced its first share buyback since early 2024. The move lifted investor confidence as the company faces softer demand for its popular Labubu dolls.
Pop Mart shares jumped as much as 10% to HK$199.60 in early trade, marking their biggest intraday rise in five months. The stock had earlier fallen to its weakest level in eight months amid concerns over slowing sales momentum.
In a stock exchange filing, Pop Mart said it bought back 1.4 million shares on Monday for a total value of HK$251 million, or about $32 million. Data from Bloomberg showed the company last carried out a buyback in February 2024.
The announcement came as investor interest in Labubu toys has cooled after a strong run driven by social media hype. Labubus went viral in 2024 and early 2025, which sharply boosted Pop Mart’s valuation. However, the trend faded in late 2025, and the company’s share price fell for a long period.
Despite the recent drop, Pop Mart shares rose about 109% in 2025 after gaining more than 200% earlier in the year. Still, the stock is over 40% below its August peak, as investors doubt the company can keep growing sales this fast.
Morgan Stanley analysts said the buyback could attract investors who were waiting for a clear trigger to re-enter the stock. They added that Pop Mart appears to have strong financial resources to support further shareholder returns, although the company has not announced any plans for additional repurchases.
The sharp rally could also pressure short sellers. According to S&P Global, short interest climbed to 7% of the company’s freely tradable shares by last Friday, compared with only 0.2% in early September.
