Core Viewpoint - Morgan Stanley downgraded Pop Mart's stock rating to "Neutral" due to a lack of clear growth catalysts and unattractive current valuation, raising market concerns about the potential decline in product popularity [1] Group 1: Stock Performance - On September 15, Pop Mart's stock opened with a significant drop, falling over 8% at one point, and closed at 259 HKD, reflecting a decline of 6.43% [1] - Since reaching an all-time high on August 26, Pop Mart's stock price has decreased by 30% [3] Group 2: Product Market Trends - Concerns have emerged regarding the waning popularity of Pop Mart's products, particularly the Labubu series, with its trading prices on the secondary market experiencing volatility [1] - The average transaction price for the Labubu series has shown a downward trend, with some regular models trading below their original price of 99 CNY [1] - The hidden version "Ben Wo," a limited edition product, has seen its second-hand market price drop to around 700-800 CNY, with some listings going as low as just over 200 CNY [2]

Group 1 - The LABUBU series, once highly sought after, is experiencing a significant decline in second-hand prices, with the hidden version "Ben Wo" dropping from approximately 4356 yuan to 834 yuan over the past 90 days [1] - Following the peak price of 339.8 HKD per share on August 26, the stock price of Pop Mart has been on a downward trend, falling 7.5% on September 8 and reaching 269 HKD per share by September 10, resulting in a total market capitalization of approximately 361.2 billion HKD [4] - The initial sale of the LABUBU series sparked a buying frenzy, with prices on second-hand platforms reaching as high as 3200 yuan for a complete set of 14 figures, and some sellers charging up to 2699 yuan for "proxy buying" services, which is more than double the official price [4] Group 2 - The average transaction price for the mini LABUBU has significantly decreased, with the A-M version averaging 147 yuan and the complete N-Z set averaging 1511 yuan as of September 10 [4] - In response to the drastic price fluctuations, scalpers are adopting a conservative approach, with some halting purchases and waiting for market conditions to improve, indicating a shift in market sentiment [10] - The latest financial report from Pop Mart shows a remarkable revenue increase of 204.4% year-on-year for the first half of 2025, reaching 13.876 billion yuan, with a net profit growth of 396.5% [10]

Core Viewpoint - The article discusses the recent launch and market dynamics of the Labubu series toys by Pop Mart, highlighting the shift to pre-sale methods and the subsequent impact on pricing and consumer behavior [1][4][5]. Group 1: Product Launch and Sales Strategy - On June 18, Pop Mart launched the Labubu third generation toys through a pre-sale method across multiple platforms, with a single blind box priced at 99 yuan and shipping scheduled for September 22 [1]. - This is the first time Pop Mart has utilized a non-inventory pre-sale approach for Labubu toys, aiming to enhance the shopping experience for regular consumers [4]. Group 2: Market Reaction and Pricing Trends - Following the pre-sale announcement, the resale prices for Labubu toys on second-hand platforms dropped significantly, with some listings as low as 100 yuan, compared to previous prices starting at 250 yuan [2]. - The average transaction price for the "Front High Energy" series of Labubu items fell sharply from 2279.7 yuan to 1181.3 yuan within a day, leading to a surge in trading volume from 66 units to 2531 units [5][8]. Group 3: Consumer Sentiment and Resale Market - Many consumers expressed satisfaction at the decline in prices, particularly enjoying the losses incurred by scalpers [2]. - In the resale market, the price for a complete set of Labubu blind boxes has decreased, with offers ranging from 650 yuan to 800 yuan, indicating a significant drop in demand among scalpers [4]. Group 4: Expansion into Other Markets - The Labubu brand has expanded into the jewelry market, with gold versions of Labubu being sold in Shenzhen, appealing particularly to young consumers [13][15]. - Despite the popularity of Labubu-themed gold jewelry, there are concerns about IP infringement, with reports of unauthorized versions circulating in the market [16].