Pop Mart Shares Plummet Amid Disappointing Earnings Report

Pop Mart International Group's shares experienced a significant decline following the release of its earnings report on Wednesday. According to Ming Pao, the company's stock fell by 22% at midday and continued to drop by over 10% on Thursday, closing at HKD 150.7. The trading volume exceeded HKD 153 billion, making it the most actively traded stock on the Hong Kong Stock Exchange. Several major investment banks have issued reports indicating that Pop Mart's earnings guidance fell short of expectations. The company is facing short-term pressures due to slowed overseas growth and a high base effect. Consequently, these banks have lowered their target prices for the stock. Notably, Bank of America Securities and Jefferies have both slashed their target prices by over 40%. Additionally, Deutsche Bank has downgraded its rating to 'sell' with a target price of HKD 157, the most bearish among the major banks.