Pop Mart's Shares Surge After News of Share Buyback
By Jiahui Huang
Pop Mart's shares rose sharply after it announced it first share buyback in almost two years.
Its shares rose 7.8% to 195.00 Hong Kong dollars, equivalent of $25.01 in early trade on Tuesday, outperforming Hang Seng Index's 0.1% loss.
The gains came after Pop Mart said in a filing on Monday that it plans to repurchase 1.4 million shares for HK$251.4 million.
"We think Pop Mart's share repurchase reflects management's view that shares are underpriced," said Morningstar equity analyst Jeff Zhang. The company is also using the share buyback to enhance returns to shareholders as its dividend yield has been below 1% for a long time, he added.
Pop Mart's last share buyback was in February 2024, when it purchased 150,000 shares for HK$2.7 million.
More share buybacks by the seller of the hugely popular Labubu dolls are expected in the short run, though the rally in its stock may curb its willingness for repurchases in the long term, Zhang said.
Pop Mart's shares prices have gradually weakened since hitting a peak around HK$339.80 in August last year. That was likely because investors turned more cautious about the company's revenue growth this year and the risk that the hype surrounding its products could fade.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
January 19, 2026 22:57 ET (03:57 GMT)
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