Key Takeaways:
POP MART's new Twinkle Twinkle Farm Tales blind box series sold out instantly across online channels on launch night, with the hidden edition reselling at nearly 14 times the RMB129 retail price.
"I was unable to secure a purchase," Duan Yongping, a well-known investor, said on social media in response to netizens asking about the launch.
Reservations on the Dewu App exceeded 24,000 before the official launch, and inventory was depleted immediately after sales began. The hidden edition "Tearful Duckling" currently has a top bid of RMB1,799, surpassing the premium levels seen for this year's LABUBU THE MONSTERS Hair Salon Series during the same period. The sellout across multiple online channels within hours of the launch shows the strength of the Twinkle Twinkle IP.
The sellout comes as POP MART's stock fell 4.1% with short selling of $401.08 million, a 24.1% short-selling ratio. The drop followed the company's 1H26 results showing net profit of RMB5.04 billion, up 10.1% year over year but below expectations.
The instant sellout demonstrates continued consumer appetite for POP MART's collectible IPs even as earnings growth slows. The 14x premium on the hidden edition suggests the secondary market remains active for limited-edition figures, though the earnings miss points to margin pressure across the broader product lineup. The company's strategy of releasing limited-edition series with hidden variants has proven effective at driving urgency and repeat purchases among collectors.
The elevated short-selling ratio of 24.1% shows bearish positioning is building in the stock. Investors are weighing strong product demand against slower profit growth, with the company's expansion of its IP portfolio beyond LABUBU seen as a key driver for the second half. The Twinkle Twinkle franchise has become one of POP MART's fastest-growing character lines, following the breakout success of LABUBU, which drove much of the company's earlier growth. The company has been rolling out new series across its IP portfolio to sustain collector interest and expand its addressable market.
POP MART has been diversifying its character lineup to reduce reliance on any single IP. The company's ability to convert product demand into margin expansion will be the key question for investors as they assess whether the earnings slowdown is temporary or reflects a structural shift in the trendy toy market. The company faces competition from emerging toy brands and changing consumer preferences, making IP management and product innovation critical to maintaining its market position.
The stock's decline with elevated short selling shows investors are pricing in slower growth. The company's next earnings report will test whether the Twinkle Twinkle franchise can drive margin recovery and whether the sellout momentum translates into sustained profitability. Investors will also watch for the company's guidance on new product launches and international expansion plans, as well as any updates on its LABUBU franchise performance in overseas markets.
This article is for informational purposes only and does not constitute investment advice.
