Deutsche Bank: Second-quarter revenue growth for Pop Mart may slow down due to Labubu fatigue.

Sammi Xu of Deutsche Bank says in a report that due to weak overseas markets and aesthetic fatigue towards its key intellectual property Labubu, Pop Mart's revenue in the second quarter may experience significant slowing. The analyst suggests that the Chinese toy manufacturer may only see a year-on-year revenue growth of 1.6% in the second quarter, compared to 75%-80% growth in the first quarter, indicating a 16.3% decrease quarter-on-quarter. Xu adds that the launch of new products and expansion of overseas stores may not be enough to offset the impact of higher base figures and cooling demand. The analyst predicts that as sales momentum weakens, the situation in the third and fourth quarters will deteriorate further, as the intellectual property cycle may have already peaked. Deutsche Bank maintains its sell rating and target price of 140.00 Hong Kong dollars.