9992.HK Stock Today: December 24 — Short Interest Spikes as Labubu Fades
Pop Mart stock is under pressure today as short interest spikes and Labubu demand cools. Third-party data show North America growth slowing, adding to sentiment risk. At HK$200.2, shares sit well below the HK$339.8 year high, with valuation still rich. For Australian investors, we outline what the short build means, how a fading hero IP can hit margins, and the levels that matter if you trade 9992.HK on Hong Kong brokers.
Short Interest Spike and Fading IP Momentum
Short wagers against Pop Mart have reportedly tripled since November as growth expectations reset. Pop Mart stock trades at HK$200.2 after a long rally, leaving it sensitive to weaker sell-through. Data cited by AASTOCKS flag sharply slower North America revenue growth and a jump in short positions, reinforcing near-term pressure on shares source.
Resale prices for Labubu collectibles have dropped and queues have thinned, pointing to cooling hype. That trend can compress gross margin if discounting rises and inventory days extend. Pop Mart stock tends to react quickly to IP cycle turns, so investors should watch restock velocity, limited edition sell-out times, and price gaps between online retail and secondary markets.
North America Growth Slowdown and Fundamentals
Third-party trackers indicate North America growth has slowed sharply after a strong rollout. That matters because international mix was expected to drive 2025 comps. For AU investors, a softer United States cycle can weigh on sentiment even if China stabilises. Pop Mart stock needs new IP or collaborations to re-accelerate traffic and defend pricing across flagship stores and vending channels.
Fundamentals look solid: gross margin 69.6%, operating margin 40.6%, ROE 54.5%, low debt and strong coverage. Yet valuation is demanding at 35.5x PE, 10.7x sales, and 17x book. If Labubu fatigue persists, multiple compression is a risk. Pop Mart stock requires clear evidence of fresh IP traction or improving North America growth to justify these multiples.
Technical Setup and Key Levels for AU Traders
RSI sits at 45.9, MACD remains below zero but the histogram has turned positive. Bollinger mid near 203, lower band around 179, with ATR 8.6 suggesting wide swings. Pop Mart stock faces a heavy supply zone near 203 to 206. A daily close below 199 increases the chance of a retest of 188 to 179 support.
The 50-day average is 218.11 and the 200-day is 227.75, both above price, keeping trend pressure in place. Year high is 339.8. Shorts rising into weakness raises squeeze risk on good news. Pop Mart stock catalysts include new IP drops, licensing deals, store openings, and the next results window currently slated for 24 March 2026.
Positioning, Risks, and What AU Investors Can Do
Consider smaller position sizes, staged buys, and strict stop-losses given volatility. Our system’s stock grade is B+ with a Buy suggestion, and a company rating of A- Buy as of 3 March 2025. Pop Mart stock may rebound on fresh IP or better North America updates, but patience and risk control matter when short interest is elevated.
Key risks include fashion fatigue, IP concentration, slowing North America growth, and FX costs for AUD accounts. Inventory on hand near 122 days points to balance risks if demand cools. Founder Wang Ning’s net worth has fallen alongside the share slide, highlighting market pressure source. Pop Mart stock needs a clear product cycle to stabilise valuation.
Final Thoughts
Pop Mart stock sits at a delicate spot. Shorts have grown, Labubu demand looks softer, and North America growth has slowed, which can pressure the multiple. The company still posts strong margins and returns with modest leverage, but that strength now needs a new product cycle to carry it. For Australian investors, focus on execution signals: new IP launches, sell-through pace, overseas store productivity, and inventory trends. Use defined levels for trades, watch HK$199 to HK$203 near term, and respect downside to HK$179 if momentum slips. Keep position sizing tight, budget for FX and Hong Kong stamp duty, and review updates from both management and third-party trackers before adding risk.
FAQs
Reports point to a jump in short interest since November and signs of a Labubu demand slump. Third-party data also indicate North America growth has slowed sharply. With valuation still rich, small disappointments can weigh on sentiment. Traders are watching HK$199 to HK$203 for direction and HK$179 as key support.
It depends on risk tolerance. The business has strong margins and returns, but momentum is cooling and shorts are active. Consider staged entries and clear stops. Look for evidence of new IP traction and better overseas growth before sizing up. Account for FX costs and Hong Kong trading fees in returns.
Fresh IP launches, high sell-through rates, limited editions selling out at full price, and improved North America trends could help. Positive updates on store productivity, collaborations, or licensing can also spark a squeeze if short interest stays elevated. Clear guidance on inventory and margins would support the valuation.
Use an AU broker that offers Hong Kong market access, or an international platform with HKEX trading. Fund in AUD, then convert to HKD within the platform. Check FX spreads, brokerage, stamp duty, and settlement rules. Set limit orders due to wide spreads and monitor pre-open auction prices.
Fashion fatigue, dependence on a few IPs, slower North America growth, and inventory build are key risks. FX and fee drag also matter for AUD accounts. Any pricing discount to clear stock can hurt margins. Regulatory or consumer softness in China could further pressure the share valuation.
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.
