In a previous post, I said unpredictability is what Pop Mart investors must shoulder, but is there any number that can make investors slightly more comfortable?
Let’s try Labubu adjusted P/E and we need Labubu adjusted earnings.
Labubu (The Monsters IP from Pop Mart) revenue was over 14 billion rmb in 2025.
The other “good” IPs were about 3 billion rmb revenue.
We can assume there is 10 billion “extra” revenue that Labubu is earnings.
We can also assume Pop Mart’s marginal operating profit margin is 50%. Then the “extra” operating profit is ~5 billion rmb.
Subtract that from 2025 operating income will give you about 12bn rmb in Labubu adjusted operating profit.
With 25% tax rate, Labubu adjusted earnings is about 9bn rmb.
At 150 HKD per share, Pop Mart is at ~20x Labubu adjusted P/E.