Labubu-maker pop mart shares fall as Morgan Stanley cut it off the bar

Shares in Beijing-Labubu-maker Fold The Morgan Stanley removed the stock from the Focus list and the state media continued to roll on Friday after the state media called for a strong control for the “Blind Box” toys.

The Chinese toy manufacturer first gained popularity with his “Blind Box” concept, in which customers buy marked boxes – its cost can cost $ 5 to $ 10 each – for the opportunity to get a unique statue and build a collection.

People’s Daily, China’s Communist Party’s official newspaper on Friday Criticized the “Blind Box” Phenomena, Advocacy for strict control. The article has not been mentioned by the name by name and has focused on children and young people who are spending more on packets to collect cards.

Even this month Chinese Customs Agency Highlighted several times on social media This stopped the cases of Labubu Copy Cats as it crossed the border.

Pop-Mart’s Hong Kong-Listed Shares are more than 5%last, extending their slide when the previous session fell 5.3%. It has placed a tall flying stock on the track for the first Negative Time for the first Negative Time of May-more than 13%. The benefits of the date from its year are greater than 160%.

Morgan Stanley said he was replacing the pop -mart with an insurance company on Wednesday night’s note PICC P&C On the list of the firm’s China and Hong Kong Focus.

The investment bank did not extensively stated why the pop -mart shares were removed. On June 10, the company’s price target on the toy company was increased by 224 hkd to the $ 38.47 of the Hong Kong Dollar ($ 38.47), expected to grow in the long run.

“We hope that the market is completely exacerbated in the exponential growth of the pop -mart in 2025 but has no strong offense about a long -term perspective,” Equity analyst Dustin Wee and the team said in a June 10 report.

“In terms of its high assessment, we will not expect this level to continue in the next few quarters,” the report said.

Pop-Mart shares reach a record high of 283.40 HKD on June 12.

Beijing -based toy company has expanded rapidly abroad with online sales platforms and physical stores, including US and UK

Over the past few months, a series of “Labubu” toys will include an Elf-like character, which is a global phenomenon, which draws attention to fashion and culture-centered attention New York Newspaper And New York Times.

Labubu stuffed toys, pillows and related goods have also been released to capture pop -mart demand. 4 feet high Equally sold equally for $ 170,000 At the auction in Beijing earlier this month. Many affordable versions of the statue were subsequently left out of stock on the mainland of China.

“We have seen some trends before … There is always some cute thing that people should have,” Jacob Cook co-founder and CEO of WCIC I Marketing + Technologies told CNBC on Friday. The company is sold online for foreign brands – such as Vitamics and clinical – China and other parts of Asia.

He showed interest in Capibara stuffed toys last year. Chinese retailer MinisoIt has stores in the US and other countries, one of the leading sellers of a stuffed animal.

Cook saw the pop -mart as “more fortunate than all, but it reflects the growing interest in toys not only for children but for adults.

Refers to the popularity of its toys, pop -mart Overseas sales The company has already exceeded the total sales of the company in 2024 in 2021.

The company reported the total sales in 2021, primarily a domestic 4.49 billion yuan (24 62.6 million). In 2024, overseas sales exceeded only 5.1 billion yuan, with 373% higher for a year, while the mainland China’s sales rose to 7.97 billion yuans.