Core Insights - The stock price of Pop Mart has been declining since reaching a peak market value of HKD 440 billion two months ago, currently stabilizing around HKD 350 billion, raising questions about the sustainability of the blind box business [1][11][13] Company Performance - Pop Mart reported its best half-year performance since inception in August 2023, with revenue of HKD 13.88 billion, a year-on-year increase of 204.4%, and a net profit of HKD 4.574 billion, up 396.5% [11] - The LABUBU series, part of THE MONSTERS franchise, contributed HKD 4.814 billion in revenue, increasing its share of total revenue from 13.7% in 2024 to 34.7% [11] - Following the strong performance, Pop Mart's stock price surged to approximately HKD 340, pushing its market value above HKD 440 billion [11] Market Dynamics - Despite the initial success, Pop Mart's stock price experienced a significant correction, dropping over 25% from its peak by mid-September 2023 [11][13] - The company faced challenges with its jewelry brand popop, which saw lackluster sales compared to its toy products, and a decline in the secondary market prices for LABUBU collectibles [13] Brand and IP Development - The LABUBU character gained global popularity after being featured by BLACKPINK member Lisa on social media in April 2024, leading to a surge in demand [9] - The company has expanded its international presence, particularly in Southeast Asia, where LABUBU has garnered a substantial fan base [7][9] Future Outlook - The current stock price adjustment may be a minor setback in the broader context of industry development, with potential for future growth if Pop Mart continues to innovate and develop strong IP [15]