Pop Mart’s Toy Craze Fuels Stock Surge with Ne Zha Success

Pop Mart International, a leading Chinese toymaker, continues to see impressive growth driven by its merchandise linked to popular intellectual properties (IPs). Following the success of Labubu, the company is now experiencing another market surge, fueled by the release of its Ne Zha 2 toys. These toys sold out quickly after their launch on January 30, 2025, coinciding with the movie’s record-breaking box-office performance in China. The movie has now surpassed The Battle at Lake Changjin in all-time ticket sales.

Labubu’s Popularity Drives Expansion
Pop Mart’s success with Labubu, a fan-favorite elfin character, has significantly boosted the company’s sales both within China and internationally. Labubu has a devoted fanbase, including K-pop stars like Blackpink‘s members. This has helped Pop Mart expand beyond the mainland and led to a 350% rise in stock prices in Hong Kong in the previous year.

Morgan Stanley Highlights Pop Mart’s Potential
Morgan Stanley has named Pop Mart as one of its preferred stocks for 2025, with analysts predicting strong earnings growth as the company capitalizes on its IP toys. According to analysts Dustin Wei and Carol Xia, Pop Mart’s ability to secure global IP partnerships positions it as a leader in the industry, enabling it to effectively monetize popular IPs through toys.

Pop Mart’s IP Strategy Boosts Customer Base
While third-party IPs like Ne Zha contribute only 15-20% of Pop Mart’s revenue, they play a vital role in attracting new customers and expanding its reach. The company’s continued success in leveraging IP merchandising for popular franchises demonstrates its growing influence in the toy market.