Shares of Hong Kong’s most-hyped consumer stocks, Laopu Gold (6181), Mixue (2097) and Pop Mart (9992), slumped on Thursday, as investors took profits following a record-setting rally.
Together known as Hong Kong-listed “New Consumption Three Sisters,” the companies have each seen their valuations grow by over 100 percent this year, and their combined market capitalization exceeded HK$730 billion as of Wednesday’s close.
Beijing-based luxury jeweller Laopu Gold briefly surpassed HK$1,000 on Thursday, pushing its year-to-date gains to over 300 percent. However, the stock reversed sharply to close at HK$904, down 9.05 percent on the day.
Fashionable toy Labubu maker Pop Mart once hit a new high, as it will be included in the FTSE China 50 Index, which tracks the 50 largest and most liquid Chinese companies listed in Hong Kong. But the gains were wiped out, and the stock dropped more than 3 percent before ending 1.22 percent lower at HK$243 apiece.
Mixue, China’s largest bubble tea chain, has more than doubled in value since its March 3 debut on the city's stock exchange. It opened at a record high of HK$618 on Thursday, but fell sharply during the session to close at HK$568, down 7.72 percent from the previous close.
Despite strong market interest in these stocks, analysts hold diverging views on their outlooks.
Kenny Ng Lai-yin, securities strategist at Everbright Securities International, sees Pop Mart as the most promising among the three over the medium to long term.
"Its fundamentals remain relatively solid, given the company’s strong historical growth and positive consumer reception to its new products," Ng said.
After some adjustment, the stock may still have room to perform, Ng said, recommending entry if it pulls back below HK$200.
Laopu Gold, dubbed the 'Hermès of Gold' by Chinese consumers, has a market capitalization of HK$157.83 billion despite operating just 36 stores across China — eclipsing Chow Tai Fook’s (1929) HK$118.25 billion valuation, even though the local jewelry giant runs more than 7,000 outlets.
Investment bank SPDB International said its valuation could see further upside if the company succeeds in solidifying its positioning as a luxury brand.
As for Mixue, Ng said its valuation looks stretched, noting that despite its unique business model, it remains fundamentally part of the broader consumer sector.
Similarly citing valuation concerns, BofA Securities downgraded Mixue’s stock from "Neutral" to "Underperform."
MELODY CHEN
