Labubu-Manufacturers’ shares called for strict regulation as Chinese state media, Morgan Stanley Trim’s interest

Share in Beijing-Lububu-Mekar Pop mart Morgan Stanley continued on Friday after removing the stock from a focus list and the state media called for a strong regulation for the “blind box” toys.

The Chinese toymaker gained popularity with its “blind box” concept for the first time, in which consumers buy untouched boxes – which can cost from $ 5 to $ 10 – for a chance to get a unique statue and make a collection.

People’s Daily, Chinese Communist Party official newspaper, on Friday Criticizing “blind box” Event, Advocacy of strict regulationPop Mart was not named in the article and more focused on children and youth who were spending heavy on the packets gathered to collect cards.

China’s customs agency this month too Highlight several times on social media How did this stop the cases of Labubu duplication from crossing the border.

Pop Mart’s Hong Kong-list shares were below 5%, expanding their slide from the previous season when they were reduced by 5.3%. From the beginning of May, the high-ups of high-ups for its first negative week have been placed on the track-with a loss of more than 13% by now. Its profit from year to year is more than 160%.

Morgan Stanley said in a note late on Wednesday that it was changing pop mart with the insurance company Picc p & c Firm’s China and Hong Kong focus list.

The investment bank did not explain why it removed the pop mart shares. On June 10, the firm extended its price target at 302 Hong Kong dollars ($ 38.47) on the toy company, from 224 HKDs, on hopes that pop mart still had space to grow in long periods.

Equity analyst Dustin Wei and a team said in the June 10 report, “We think the market has completely decided in the exponential growth of pop mart in 2025, but may not be strong punishment on a long -term approach.”

The report said, “In view of its high evaluation, we do not expect better performance of this level to continue in the next few quarters,” the report states.

Pop Mart shares hit the record intra-day high of 283.40 HKD on 12 June.

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

In the last few months, the company’s “Labubu” series of toys characterized by a character like a yogini has become a global event, even draw attention to fashion and culture-centric New York magazine And the new York Times,

Pop Mart has also issued Labubu stuffed toys, pillows and related goods to catch the demand. A 4-foot long Sold for equal to $ 170,000 Earlier this month at an auction in Beijing. Many more affordable versions of the statue later moved out of stock in the mainland China.

Jacob Cook, co-founder and CEO of WPIC Marketing + Technologies, told CNBC on Friday, “We have seen some trends the same as before … it seems that there is always something sweet that people have to do.” The company helps foreign brands – such as vitamics and clinical – sell online in China and other parts of Asia.

He pointed to interest in Capbara Stuffed Toys last year. Chinese retailer minisoWhich also has stores in the US and other countries, one of the main vendors of the stuffed animal.

Cook saw Pop Mart as “lucky than anything”, although he reported that it reflects the increasing interest in toy not only for children but also for adults.

Indicate the growing popularity of your toys, pop mart foreign sales In 2024, in 2021, the company has already crossed the overall sales.

The company reported a total sale of 4.49 billion yuan ($ 624.6 million) in 2021. In 2024, in 2024, foreign sales alone hit 5.1 billion yuan, a year ago up to 373%, while the mainland China sales up to 7.97 billion yuan.