After the stock price dropped sharply for two consecutive days, Pop Mart spent HKD 599 million to buy back shares.

Why did Pop Mart’s impressive performance lead to a drop in stock price?

The continuous decline in stock price seems to have made Pop Mart restless. On March 25, Pop Mart (9992.HK) saw a decline of 22.51% throughout the day, and at one point during trading today, the drop exceeded 10%.

On March 26, Pop Mart announced that it would spend HKD 599 million (approximately RMB 529 million) to repurchase 3.94 million shares, with the repurchase price range at HKD 148.4 to HKD 157.8 per share. By the close, Pop Mart’s share price was quoted at HKD 150.7 (approximately RMB 133.05).

The Q3 2025 report shows that Pop Mart’s overall revenue (unaudited) maintained a high growth rate of 245% to 250% year-on-year, but the capital market’s reaction has been relatively lukewarm. On March 25, Pop Mart released its 2025 annual report during trading, reporting total revenue of RMB 37.12 billion, a year-on-year increase of 184.7%, and adjusted net profit of RMB 13.08 billion, a year-on-year increase of 284.5%. However, after the release of the significantly increased annual report, Pop Mart’s stock price plummeted, with market analysts pointing out that doubts about the company’s ability to maintain high-speed growth in 2026 may be the reason for this significant price adjustment.

In January of this year, Pop Mart’s stock price continued to adjust, and the company conducted two large-scale repurchases on January 19 and January 21. The repurchase prices were HKD 177.7 (approximately RMB 156.89) to HKD 181.2 (approximately RMB 159.98) and HKD 191.1 (approximately RMB 168.71) to HKD 194.9 (approximately RMB 172.07), with a total repurchase amount of nearly HKD 350 million (approximately RMB 309 million), which drove the stock price up by over 23% within the week. Currently, Pop Mart’s cumulative repurchase amount exceeds HKD 900 million (approximately RMB 795 million).

(This article is from Yicai)