Core Viewpoint - The recent decline in the stock prices of Pop Mart and its peers in the new consumption sector reflects a market correction, driven by high valuations and a cooling consumer sentiment [1][4]. Group 1: Pop Mart's Stock Performance - Pop Mart's stock price has dropped over 15% from its peak, resulting in a market capitalization loss of more than 500 billion HKD [1][2]. - The trading price of Pop Mart's popular IP, Labubu, has plummeted in the secondary market, with a 45% drop for hidden versions and a 54% drop for non-hidden versions [2]. - On June 20, Pop Mart's stock closed at 239.6 HKD per share, down 3.62%, with significant trading volume nearing 10 billion HKD and net selling by southbound funds reaching 617 million HKD, the highest since May 12, 2025 [2][3]. Group 2: Market Sentiment and Valuation - The new consumption sector, including Pop Mart, Lao Pu Gold, and Mixue Group, has experienced a collective decline, with Lao Pu Gold down over 19% and Mixue Group down nearly 17% [1][4]. - Analysts indicate that the current high price-to-earnings (P/E) ratios in the new consumption sector suggest overvaluation, with Pop Mart's P/E ratio at 97.17, compared to traditional consumer giants like Kweichow Moutai at 20.04 [4]. - Some analysts warn that if market sentiment cools or consumer enthusiasm wanes, stock prices may face further adjustments due to inflated expectations [4]. Group 3: Future Outlook - Despite the recent downturn, some fund managers remain optimistic about the long-term growth potential of new consumption companies, focusing on emotional consumption, cost-effective products, and international expansion [5]. - Lao Pu Gold and Mixue Group have shown signs of recovery, with Lao Pu Gold rising nearly 6% after opening its first overseas store in Singapore, indicating strategic growth opportunities [6].