Pop Mart International (9992) lost further over 6 percent in Hong Kong today on the concerns about the possible fading of Labubu mania.
After skyrocketing over 370 percent last year, the Chinese toy maker saw its shares already dipped about 9 percent from December 23-27.
But Morgan Stanley said the recent fall was mainly due to the falling prices in the secondary market and some investors cashing in their gains.
Morgan Stanley gave a “shareholding” rating and a target price of HK$113 apiece.
According to Morgan Stanley, some investors are particularly concerned about the drop in resale prices for Labubu and Coca-Cola crossovers, unlike other Labubu toys that were launched 6-12 months ago.
Despite concerns that this is a sign that Labubu is losing popularity, the line is still out of stock. In addition,Labubu’s speculative price has fallen close to the product’s original selling price, which may discourage dealers from stocking up again in the future.
Pop Mart dropped 6.1 percent to HK$88.45 on Monday.
(Themis Qi)