POP MART(09992) Guan Cha Zhe Wang·2025-05-08 07:00Core Viewpoint - The recent large-scale share reductions of Pop Mart, known as China's first trendy toy stock, are attributed to the expiration of the fund held by Fengqiao Capital, which has sold all its shares in the company after a significant profit since its initial investment before the company's IPO [1][2]. Group 1: Share Reduction Details - On May 7, Pop Mart experienced its third major share reduction within a week, with an investor selling approximately 3.86 million shares at HKD 190.20 per share, totaling around HKD 734 million [1]. - The previous reductions occurred on April 30 and May 2, where 4.05 million shares and 4 million shares were sold at HKD 192.95 and HKD 187.99 per share, respectively, amounting to HKD 7.8 billion and HKD 7.5 billion [1]. - In total, 11.91 million shares were sold, representing about 0.9% of the company's total share capital, with a total transaction value of HKD 22.64 billion [1]. Group 2: Fund Expiration and Performance - Fengqiao Capital confirmed the share reduction was due to the expiration of its first RMB fund, which had invested in Pop Mart before its IPO at a cost of HKD 17-20 per share, resulting in a profit of over 8 times at current selling prices [2]. - Since its listing on December 11, 2020, Pop Mart's stock price has increased significantly, with a maximum cumulative increase of over 10 times [2]. - For the fiscal year 2024, Pop Mart reported a revenue of CNY 13.04 billion, a year-on-year increase of 106.9%, and an adjusted net profit of CNY 3.4 billion, up 185.9% [2]. Group 3: Market Reactions and Future Outlook - Market analysts suggest that the fund's exit may be beneficial for Pop Mart, as similar cases in the Hong Kong stock market have led to renewed interest from public funds, resulting in stock price increases [2]. - An insider indicated that the recent share reductions are a natural outcome of the fund's expiration and do not reflect any negative impact on the company's fundamentals [2]. - Despite the exit of Fengqiao Capital, the relationship between the two remains strong, with Fengqiao's founder still serving as a non-executive director of Pop Mart [3].