9992.HK Stock Today: December 24 — Pop Mart Sinks 40% as Labubu Fades
Pop Mart stock is under pressure as the Labubu craze fades, dragging shares roughly 40% below August highs. Alternative data point to slower holiday‑quarter growth, resale prices have slumped, and analysts turned cautious. Deutsche Bank sits at Hold with a HK$228 target, citing the need for a new hit IP. With sentiment weak but fundamentals still solid, we break down what this means for US investors, key technical levels near HK$200, and catalysts that could stabilize the 9992.HK price into early 2026.
Why shares fell about 40% from summer highs
Resale interest is fading, with Korea secondary prices dropping from 170,000 won to 20,000 won, signaling weaker scarcity value and softer holiday sell‑through. That shift underpins the “Labubu craze fading” theme investors cite as a key driver of Pop Mart stock weakness. Reports of shorter lines and slower flips highlight fashion fatigue risks for a product line built on collectability. Asiae details the price slump.
With growth decelerating, several analysts pulled back. Deutsche Bank remains at Hold with a HK$228 price target, flagging downside if no new hit IP emerges soon. That stance reflects near‑term execution risk and exposure to a single hero character. Forbes underscores how the slowdown pressured leadership wealth, reinforcing a cautious tone on Pop Mart stock.
Valuation and fundamentals in focus
Pop Mart runs at premium metrics: P/E 35.5, P/S 10.7, and P/B 17. Profitability is impressive, with a 30.3% net margin and 54.5% ROE, while leverage is low. Those strengths set a high bar for execution, especially if single‑IP dependence lingers. For Pop Mart stock to re‑rate, investors will want stable demand across more characters and a clear path to repeatable launches.
TTM growth looks solid, yet cash metrics are tight relative to price, with an about 1.18% free cash flow yield. Inventory days sit near 122 and the cash conversion cycle is roughly 51 days, both important into a softer holiday quarter. The next earnings update is expected around March 24, 2026. Watch the 9992.HK price reaction to guidance and any pipeline updates.
Technical picture and levels to watch
Momentum screens mixed: RSI 45.9 is neutral, ADX 21.7 shows a modest trend, and the MACD histogram is slightly positive. Average true range sits near 8.6, flagging wider day‑to‑day ranges. Traders in Pop Mart stock should account for slips on thin liquidity days and use clear stops, as weak hands often get shaken out during character‑driven demand resets.
Bollinger levels cluster around the tape, with the middle near HK$203.0 and lower near HK$179.4. The Keltner mid line sits near HK$201.4. The 50‑day average around HK$218.1 is a first resistance, then HK$227. A close above the HK$203 to HK$205 zone could improve tone. Keep Pop Mart stock on a short leash below HK$195 support.
What US investors should consider now
US investors often access 9992.HK through international brokers that support Hong Kong trading. Keep positions modest until demand normalizes and new IPs scale. Pop Mart stock can re‑rate if it proves depth beyond Labubu with multiple winners and steadier resale dynamics. Without that, premiums may compress further, even if core profitability stays strong.
Consider scaling only on clear evidence of stabilized comps, better sell‑through, or a credible franchise launch roadmap. Tactical traders can watch for closes above HK$203 to 205 or a pullback toward the HK$180 band. Catalysts include new IP reveals, measurable social buzz, and the March 24, 2026 earnings call. Deutsche Bank Hold signals balanced risk on Pop Mart stock for now.
Final Thoughts
Pop Mart stock sits about 40% below its summer highs as the Labubu craze cools and holiday‑quarter growth slows. The business still prints strong margins and returns, but valuation is rich and the market wants proof of a broader character pipeline. Near term, watch HK$203 to 205 on the upside and HK$195 to 180 as the support zone. For investors, keep sizing tight, focus on execution updates, and reassess after the next earnings call in March 2026. A new hit IP and healthier resale signals could rebuild confidence, while continued fatigue may keep multiples capped.
FAQs
It depends on risk tolerance and time horizon. The drop reflects fading Labubu momentum and slower holiday demand. Fundamentals remain strong, with a 30.3% net margin, 54.5% ROE, and low debt, but valuation is still premium. A cautious approach is to wait for evidence of a new hit IP, firmer sell‑through, or a break above HK$203 to 205. That would suggest improving sentiment.
Resale prices collapsed and lines shortened, hinting at collector fatigue and less scarcity value. Korea secondary prices reportedly fell from 170,000 won to 20,000 won, a sharp reset that pressures near‑term sell‑through and gross margin mix. That demand shift likely contributed to the 40% drawdown from August highs, weighing on the 9992.HK price until new characters or refreshed releases regain traction.
Key reference points cluster near current trading bands. The Bollinger middle near HK$203 and Keltner middle near HK$201 mark pivotal areas. A sustained close above HK$203 to 205 can open a move toward HK$218 to HK$227. Support sits around HK$195, then HK$180 near the lower Bollinger band. Use defined stops, given ATR near 8.6 points to wider swings.
Clear catalysts would include a proven new IP with strong sell‑through, visible social buzz, and stable secondary market pricing. Additional positives are steadier holiday comps, improved guidance, and diversified revenue away from a single hero character. If execution strengthens and momentum broadens, valuation risk eases, which could justify a more favorable view relative to the current HK$228 target and Hold call.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
