Duan Yongping reportedly reverses course on Pop Mart (泡泡玛特) as investors keep selling

Quick take

It has been reported that veteran investor Duan Yongping (段永平) — who had previously said he “couldn’t understand” Pop Mart and would not invest — posted on the Chinese investing forum Xueqiu that he has reconsidered and is retracting his earlier stance. The timing is notable: Pop Mart (泡泡玛特, 9992.HK) shares had plunged after its late‑March results, briefly recovered on the news and closed around HK$148.7, valuing the company at roughly HK$200 billion. Is this a contrarian buying signal or a polite nod to a story that still has questions?

Strong results, worrying optics

On fundamentals the company looks robust. It has been reported that Pop Mart posted RMB 37.12 billion in revenue for 2025, up 184.7%, and RMB 12.78 billion in net profit, up 308.8%. Its star IP LABUBU (THE MONSTERS) generated RMB 14.16 billion, a 365.7% jump and now accounts for more than a third of sales. Yet investors punished the stock after management guided for a lower growth target — “not less than 20%” for 2026 — which analysts read as a meaningful slowdown from prior expectations and drove a >30% drawdown across two trading days.

The core debate: speed versus sustainability

Critics warn Pop Mart suffers from IP concentration risk: LABUBU’s rapid rise resembles past cycles around MOLLY, rekindling “IP dependence” concerns. Management pushes back. It has been reported that CEO Wang Ning (王宁) framed 2026 as a “repair station” to fix organizational and operational strains exposed by hyper‑growth, while the company continues to incubate new IPs (CRYBABY, STAR‑PERSON, SKULLPANDA) and to scale its membership and international footprint. Which view is right — prudent consolidation or worrying deceleration?

Outlook for global investors

Pop Mart’s strategy now mixes domestic store upgrades and tighter rollout with aggressive overseas expansion; membership metrics and cross‑channel sales look strong. But this story plays out against a broader backdrop of volatile Chinese consumer and tech stocks and a cautious global risk appetite shaped by geopolitical tensions. For Western investors unfamiliar with China’s collectible‑toy market: the question is not only whether Duan’s reversal is prescient, but whether Pop Mart can prove its IP pipeline and operational fixes will endure beyond the LABUBU boom.