Labubu maker Pop Mart surges after first buy-back in 2 years in show of confidence

Repurchase signals management’s confidence and healthy balance sheet, analysts say, though stock remains 40 per cent below last year’s peak

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Investors have welcomed Pop Mart’s move. Photo: Xinhua

Published: 12:05pm, 20 Jan 2026Updated: 4:46pm, 20 Jan 2026

Shares of Chinese toymaker Pop Mart rallied nearly 10 per cent on Tuesday morning before closing more than 9 per cent higher after the company announced its first share buy-back in nearly two years, following a decline from last year’s peak.

Pop Mart’s Hong Kong-listed shares rose to HK$198.70 at the open as investors welcomed the move. Shares closed 9.1 per cent higher at HK$197.20.

The stock remains below last year’s closing level of HK$200.20, and more than 40 per cent off its August peak, suggesting softer momentum amid fierce competition and sluggish consumption.

The company repurchased 1.4 million shares for a total of HK$251 million (US$32 million) on Monday, according to an exchange filing. The shares were bought at prices ranging from HK$177.70 to HK$181.20.

“Pop Mart’s share buy-back signals management’s confidence and a healthy balance sheet,” said Wang Qi, chief investment officer at UOB Kay Hian’s private wealth management division in Hong Kong. With over 13 billion yuan (US$1.8 billion) in cash, the company had ample room for such initiatives to enhance shareholder returns, Wang added.

Labubu toys are embraced by celebrities from Blackpink’s Lisa to Rihanna and Kim Kardashian. Photo: Reuters

The Beijing-based toymaker is famous for selling “blind boxes”, which hide their content in opaque packaging. Its most popular product is Labubu, an elfin figure with a toothy grin embraced by celebrities from Lisa of girl band Blackpink to US singer Rihanna and influencer Kim Kardashian.

Labubu maker Pop Mart surges after first buy-back in 2 years in show of confidence

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Repurchase signals management’s confidence and healthy balance sheet, analysts say, though stock remains 40 per cent below last year’s peak

Repurchase signals management’s confidence and healthy balance sheet, analysts say, though stock remains 40 per cent below last year’s peak