Pop Mart's Share Price Seems Resilient Despite Weakening Sales Momentum

0236 GMT - Pop Mart's share price remains more resilient than expected despite weakening sales momentum and disappointing 1H results, says Deutsche Bank's Sammi Xu in a note. The analyst attributes this resilience to fund flows from factors such as the endorsement of prominent investor Duan Yong Ping, conviction from southbound investors and potential share buybacks. While committed shareholders could cushion near-term declines, Xu believes the Labubu maker's performance will ultimately depend on whether Pop Mart can deliver in terms of earnings. "We think a continued deterioration in operating performance would eventually outweigh the benefits of supportive shareholder sentiment," the analyst adds. DB maintains its sell rating and 115.00 Hong Kong dollar target price. Shares fall 0.85% to HK$151.40.