Ne Zha 2 is a sequel to a 2019 fantasy adventure featuring a protective deity in Chinese mythology. It had raked in more than 6.5 billion yuan (US$892 million) in ticket sales as of late Thursday and will be released in other countries including the US, Canada, Australia, and Singapore later this month.
Pop Mart’s shares fell 2.1 per cent to HK$99.40 on Thursday, giving it a market value of HK$133.5 billion. Still, they have risen 441 per cent over the past 12 months as the “blind-box economy” expanded, while the Hang Seng Index gained 28 per cent.
Morgan Stanley expects a strong upgrade in the company’s earnings this year, after they jumped 70 per cent from a year earlier to 3 billion yuan in the first half of 2024, according to its stock exchange filing. Revenue from outside China grew 260 per cent to 13.5 billion yuan, or almost 30 per cent of the total.
Pop Mart’s Ne Zha toys are being sold on Xianyu, a second-hand goods trading platform, for as high as 180 yuan versus their retail price of 69 yuan. Pop Mart has adjusted its production schedules to meet demand for its toys, according to local media reports on Thursday.
Labubu toys are also in short supply after a speculative fervour last year. But the prices have weakened as Pop Mart stepped up production to improve brand accessibility and fan experience.
“We see Labubu’s plush is still selling very well, with restocked products gone fast,” Morgan Stanley said. “We are optimistic about [Pop Mart’s Lunar New Year] sales in Asia.”
Pop Mart had 374 retail stores and 2,189 vending machines in China as of June 2024, according to its interim report. It also operated 85 stores and 143 vending machines across Hong Kong, Macau, Taiwan and other overseas markets, more than double from a year earlier.
This article was first published on SCMP.
