Shares of Pop Mart International Group Ltd slumped nearly 9% on Sept 15, their steepest drop since April, after JPMorgan Chase & Co downgraded the toymaker to neutral, citing stretched valuations and limited growth catalysts.
Bloomberg reported that the stock fell to its lowest level in over a month, as the downgrade compounded worries about softening consumer demand.
Recent social media chatter has highlighted weak sales for Pop Mart’s latest launch, the SKULLPANDA series, denting confidence in the brand’s ability to sustain momentum.
“Valuation is priced for perfection and any small miss or negative media reports, such as falling resale prices or third-party licensing risks, could drive underperformance,” JPMorgan analysts led by Kevin Yin wrote in a note.
The selloff underscores broader investor caution toward discretionary consumption plays in China, where shifting consumer trends and weaker spending power have pressured growth prospects for lifestyle and entertainment brands.
