Pop Mart, the Labubu toy maker, conducted its first share repurchase in two years, buying back 1.4 million shares for HK$251 million. The announcement boosted its Hong Kong-listed shares, which opened at HK$198.70. Analysts interpret the move as a signal of management's confidence in the company's healthy balance sheet.
Pop Mart International Group announced on Monday, via an exchange filing, the repurchase of 1.4 million shares for a total of HK$251 million (US$32 million), with prices ranging from HK$177.70 to HK$181.20. This marks the company's first such buy-back in two years.
Investors welcomed the move, with the Hong Kong-listed shares opening at HK$198.70 and up 8.5 per cent to HK$196.10 at the noon break. However, the stock remains 42 per cent below last year’s peak.
“Pop Mart’s share buy-back signals management’s confidence and a healthy balance sheet,” said Wang Qi, chief investment officer at UOB Kay Hian’s private wealth management division in Hong Kong. With over 13 billion yuan (US$1.8 billion) in cash, the company has ample room for such initiatives to enhance shareholder returns, Wang added.
Pop Mart, known for Labubu and other trendy toys, has attracted endorsements from celebrities like Rihanna, Blackpink's Lisa, and Kim Kardashian. The Beijing-based firm is listed in Hong Kong.
