Labubu scalper price cut in half, who will be the final buyer of Pop Mart?

The hot Labubu is restocking, and the scalper price is going to fall!

On the afternoon of June 18, the official mall app of Pop Mart repeatedly popped up restock notifications for related products. After the restocking, the price of Labubu3.0 in the second-hand market also fell.

Pop Mart’s stock price also calmed down. As of 17:00 on June 19, Pop Mart fell more than 5% that day.

Scalper recycling price cut in half

In April this year, the third-generation vinyl plush product “High Energy Ahead” series of IP LABUBU under Pop Mart was launched globally, causing a buying frenzy among global consumers, and long queues appeared in Pop Mart stores in various cities. But behind the popularity of IP, “scalpers” and counterfeit problems are also emerging in an endless stream, affecting the consumer experience.

On the second-hand trading platform, the original price of LABUBU 3.0 ethylene-glued pendants was 99 yuan each. Depending on the style, the price of six regular models was raised to 220 yuan to 404 yuan per piece, and the price of hidden models was as high as 2,189 yuan per piece.

In order to avoid affecting the shopping experience of ordinary consumers, on the afternoon of June 18, the official mall applet of Pop Mart repeatedly popped up restocking notices for related products.

After the restocking, the second-hand transaction price began to decline. According to data from a certain trendy second-hand trading software, the price of Labubu 3.0 blind boxes generally fell by about 50%, and the recycling price of the whole box (including 6 blind boxes) dropped sharply from 1,500 to 2,800 yuan before the restocking to 650 to 800 yuan. The price of some hidden models such as “Self” fell from 4,607 yuan to 2,851 yuan, a drop of more than 38%.

Among the scalpers, the price of the Labubu 3.0 series also dropped. Everyone generally bid between 650 yuan and 800 yuan for one end (6 blind boxes). There were also sellers who offered 1,200 yuan for the pre-sale that they had grabbed, but no one responded. Someone in the group said, “It has collapsed. It can be bought at 700 yuan to 800 yuan.” The market showed panic selling.

In response, many netizens commented, “Seeing scalpers lose money is happier than me making money.”

Labubu scalper prices are cut in half, who will be the last buyer of Pop Mart?

The price of labubu 3.0 scalpers has fallen, picture: The Paper
The stock price of Pop Mart has also calmed down. As of 17:00 on June 19, Pop Mart fell more than 5% that day. For a long time before that, Pop Mart’s stock price had been soaring. From March to mid-June this year, Pop Mart’s stock price rose by 100%. From the beginning of 2024 to the present, Pop Mart’s stock price has risen 12 times.
Who will be the last buyer after the stock price soars?

As the core IP of Pop Mart, the popularity of Labubu has further soared Pop Mart’s stock price. Compared with the beginning of 2024, Pop Mart’s stock price has risen 12 times!

Pop Mart’s stock price is soaring, but major shareholders are reducing their holdings.

According to data, Pop Mart’s major shareholder GWF Holding Limited reduced its holdings of 10.85 million shares at an average price of HK$71.98 per share on October 24, 2024, involving a capital of approximately HK$781 million. On the same day, Pop Mart Hehuo Holding Limited reduced its holdings by 10.85 million shares, involving a capital of approximately HK$781 million.

The announcement shows that GWF Holding is wholly owned by UBS Trustees (B.V.I.) Ltd., and Pop Mart Hehuo Holding Limited is 40.96% owned by Wang Ning. The ultimate beneficiary of UBS Trustees (B.V.I.) Limited is Wang Ning, the founder of Pop Mart.

According to the calculation of the ultimate beneficiary, through the above two companies, Wang Ning completed the reduction of 21.7 million shares, involving funds of about HK$1.562 billion (about RMB 1.432 billion).

Wang Ning is not the only one who reduced his holdings. According to the data, the company’s chief operating officer, Sid, also reduced his holdings by 2.1 million shares alone, completing a cash out of HK$151 million (about RMB 139 million).

Wen Deyi, president of Pop Mart’s overseas business, also disclosed that he reduced his holdings by 125,000 shares and completed a cash out of HK$8.9975 million (about RMB 8.2541 million).

After the third quarter report last year, the joint reduction scale of Pop Mart executives was 23.925 million shares, and the cash out amount was about HK$1.7 billion (about RMB 1.559 billion).

The latest news is that it is reported that “major shareholders have sold Pop Mart shares through block transactions many times”, totaling about 11.91 million shares, accounting for about 0.9% of Pop Mart’s total share capital, involving funds of about HK$2.2 billion. The topic of “Pop Mart shares were liquidated at high positions by founding shareholders” once became a hot search on Weibo.

Coincidentally, Fengqiao Capital soon posted a message saying, “Since Fengqiao’s RMB Phase I Fund is about to expire, Fengqiao Capital has concentratedly cleared all Pop Mart shares purchased before listing through block transactions in three times in the past week. From now on, the fund will no longer hold any Pop Mart shares.”

Fengqiao Capital is one of Pop Mart’s investment institutions before its listing on the Hong Kong stock market in 2020. Data shows that Fengqiao Capital has recently cashed out more than 2.1 billion yuan. Earlier, Fengqiao Capital’s founding partner Tu Zheng reduced his holdings in Pop Mart many times.

The drumbeat of this capital game has already sounded, and the only suspense is: who will be the final buyer?

A research report by Guangdong Securities believes that although Pop Mart has certain value support due to its high-quality IP, strong brand influence and expanding market share, its overvaluation may still put it at risk of a correction.