FAST NEWS: Pop Mart profit surges on overseas expansion

The Latest: “Blind box” collectible toy seller Pop Mart International Group Ltd. (9992.HK) said on Thursday it expects to report its revenue rose 55% or more in the first half of the year, while its profit surged 90% or more.

Looking Up: The big gains were the result of the company’s rapid growth in Hong Kong, Macau, Taiwan and other overseas markets, combined with greater efficiencies in its operations.

Take Note: The estimated profit doesn’t factor in gains or losses from changes in the fair value of financial instruments that have yet to be calculated, and thus the final profit in the company’s interim results may differ.

Digging Deeper: Founded in Beijing in 2010 as a trendy grocery store, Pop Mart gradually transformed into a “blind box” collectible toy seller in 2015 after acting as an agent for the Japanese character doll Sonny Angel. The company listed on the Hong Kong Stock Exchange in November 2020 in an IPO that raised about HK$5 billion ($640 million). It began expanding overseas as its growth in China slowed, including its acquisition of British toy retailer Mogic Ltd.

Market Reaction: Pop Mart shares jumped to a new 52-week high on Friday, closing up 11.3% at HK$41.90 by the midday break.

Translation by A. Au

To subscribe to Bamboo Works weekly free newsletter, click here