Pop Mart's Overseas Segment Seen Facing Challenges
Dow Jones
Yesterday
0502 GMT - Pop Mart's overseas segment now faces challenges, leading China Galaxy International to downgrade the stock to hold from add. Segment revenue fell 11% on year in 1H, hindered by weaker online traffic and operational bottlenecks in the U.S. and Europe, analysts Orlando Shi and Lei Yang say. While Pop Mart has substantial long-term overseas growth potential, the analysts are more bearish on the Labubu maker, partly due to 2H uncertainty and near-term sales deceleration. China Galaxy cuts its 2026-2028 earnings-per-share forecasts by 16%-17% to reflect a slowdown in overseas revenue growth. The brokerage trims its target price to 158.20 Hong Kong dollars from HK$180.50. Shares rise 1.3% to HK$157.00.
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