economy
Short sellers keep betting against Pop Mart
Short sellers are doubling down on Pop Mart International even as a recent share price recovery turns their bearish bets on the Chinese toymaker increasingly risky.
TL;DR
- Short interest in Pop Mart International has increased to 12.67% of shares outstanding.
- The stock has recovered 8% since its April low, but is still significantly down from its peak.
- Pop Mart is the only stock among Hong Kong's 10 most-shorted where short sellers are currently losing money.
- Bears cite cooling overseas demand and potential waning interest in the Labubu toy line.
- Bulls highlight new product launches and attractive valuations.
- Citigroup maintains a buy rating but lowered its target price, citing overseas volatility.
- Bernstein retains an underperform rating, pointing to management's acknowledgment of 'less accumulation' in overseas markets.
- Pop Mart's management described the upcoming year as a 'pit stop year' for consolidation and sustainable growth.
- Nearly all shares available for borrowing are on loan (92.4% utilization), making new short bets difficult and expensive.