On August 24, POP MART rose 3.49% in regular trading, trading at HK$154.1/share, with turnover of HK$483 million. The rebound follows sentiment recovery after its second-largest shareholder Duan Yongping publicly voiced support for the company's interim results, coupled with a substantial share buyback plan.
POP MART released its H1 results on August 20, reporting revenue of RMB 17.17 billion, up 23.8% year-over-year but significantly below market expectations of approximately RMB 19.98 billion. Adjusted net profit reached RMB 5.16 billion, up only 9.5%, also missing the consensus estimate of RMB 6.67 billion. Overseas revenue declined 11.1%, with the Americas down 16.5%. The stock plunged over 8% on August 21 in response.
Duan Yongping, holding a 7.65% stake as the second-largest shareholder, publicly stated he found the results satisfactory as a shareholder, pushing back against bearish commentary. Meanwhile, CEO Wang Ning announced a buyback plan of RMB 2-5 billion over the next six months, while acknowledging the company may not achieve its full-year 20% revenue growth target. Multiple brokerages including Nomura and Morgan Stanley lowered target prices, though some maintain the stock has medium-term upside potential.
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