Core Viewpoint - The stock price of Pop Mart has experienced extreme volatility, with a significant increase from 16.8 HKD at the beginning of 2024 to 283.4 HKD by June 12, 2024, representing a rise of over 200% year-to-date, despite a recent 6% pullback [3] Group 1: Stock Performance - The stock price surged dramatically, reminiscent of Bitcoin's rise, driven by the popularity of the Labubu IP and successful collaborations, such as a limited edition with "One Piece" that sold 600,000 units in a single day [3] - The short interest in the stock increased from 1.438 million shares in early April to 3.692 million shares by June 17, a rise of 157%, but a strong earnings report in March led to a short squeeze, causing the stock to jump 23% in two days [3] Group 2: Financial Performance - The company reported revenue of 13 billion HKD and a net profit of 3.4 billion HKD, with overseas business revenue surpassing domestic revenue [3] - The overseas market revenue grew by 375% year-over-year, accounting for nearly 40% of total revenue, indicating strong international demand [3] Group 3: Valuation Concerns - The static price-to-earnings ratio stands at 103 times, and the price-to-book ratio exceeds 30 times, which is higher than Disney's valuation [4] - Recent actions by company directors and major shareholders to sell off 6 billion HKD worth of shares raise concerns about potential overvaluation and market sentiment [4] Group 4: Future Considerations - Questions remain about the sustainability of Labubu's popularity, the feasibility of maintaining high growth in overseas markets, and the risks associated with high valuations [5] - The North American market aims for 25 billion HKD in sales by 2025, which poses significant challenges for the company [5]