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The Beijing-based company has stepped up efforts to support its share price through market purchases. Pop Mart bought back 700,000 shares on Thursday at prices ranging from HK$140.90 to HK$142.30, for a total of HK$99.2 million (US$12.6 million), according to a filing with the Hong Kong stock exchange.
The latest moves extended the company’s buy-backs to six consecutive days from March 26. Over that period, Pop Mart repurchased a total of 9.32 million shares for about HK$1.4 billion, even as the stock fell 16 per cent. So far this year, the company has conducted eight rounds of buy-backs, acquiring 11.22 million shares worth about HK$1.74 billion.
The stock closed 2.4 per cent lower at HK$141.80 on Thursday, marking a nearly 48 per cent plunge since its recent peak of HK$269.80 on February 10, wiping out nearly HK$101 billion in market capitalisation.
The flurry of repurchases followed a sharp sell-off on March 25, when the company’s shares tumbled nearly 23 per cent after the release of its latest results. Pop Mart reported a 285 per cent growth in net profit and forecast no less than 20 per cent expansion this year, driven by continued investment in its flagship Labubu franchise and new product launches.
While analysts had initially said the earnings were broadly in line with expectations, sentiment shifted quickly, with several brokerages including Morgan Stanley lowering their target prices and adopting a more cautious stance on the stock.
