Pop Mart Surges Over 9%! $31.5M Buyback Fights Back Against Short Sellers

As shares neared a 50% collapse, Pop Mart stepped in.

After the market close on January 19, Pop Mart announced it had repurchased 1.4 million shares at prices ranging from HK$177.7 to HK$181.2, totaling approximately HK$251 million ($31.5 million).

Public records show Pop Mart's last share repurchase was in February 2024, when its stock traded below HK$20. Over the next 18 months, the viral popularity of its core IP, "LABUBU," transformed the company into a capital darling, with its stock price soaring to an all-time high of HK$339.8 in August 2025.

Following that peak, Pop Mart entered a months-long correction. On January 19, 2026, shares hit an intraday low of HK$174.3, nearly halving from the peak. However, the stock rebounded to close 1.23% higher that day.

Media reports interpreted the buyback as a strong signal of confidence from management to investors.

On January 20, Pop Mart opened sharply higher, reaching an intraday peak of HK$199.6. As of press time, the stock was up 9% at HK$197.2.

Fundamentals vs. Sentiment

Despite the recent price drop, Q3 2025 earnings showed robust growth:

Total Revenue: +245% to +250% YoY.

China Revenue: +185% to +190% YoY.

Overseas Revenue: +365% to +370% YoY.

Institutions including Pacific Securities, Guohai Securities, Founder Securities, and BOCOM International all rated the results as "better than expected."

Why the Disconnect?

BOCOM International noted in a report that many investors equate Pop Mart solely with Labubu, viewing the character's cooling hype as a sign of fundamental deterioration. However, the firm argues Pop Mart is not a single-IP toy company but a trendy toy IP creation platform.

Its true "moat" is its ability to continuously create and commercialize new IPs, not just ride the wave of one character.

While The Monsters (Labubu's line) currently contributes significantly to revenue, the long-term view remains optimistic about the company's ability to replicate or even surpass Labubu's success with new IPs.

Seeking New Growth Curves

Pop Mart has been aggressively pursuing cross-border collaborations to diversify its revenue streams. In January 2026 alone:

MOLLY x Honor: Launched the Honor 500 Pro MOLLY 20th Anniversary Edition.

The Monsters x Beast: Partnered with home decor brands to launch the "Crush On You" floral and home textile collection.

Physical Retail: Launched gold products in offline stores and collaborated with Tmall Black Box.

Huatai Securities Identifies Three Key "Expectation Gaps"

In a January 20 report, Huatai Securities argued that the current market pessimism has created a valuation window, highlighting three critical misperceptions:

Conclusion