Pop Mart's Twinkle Twinkle IP Unlikely to Offset Tough 3Q Base

0245 GMT - Pop Mart's product launch under its Twinkle Twinkle intellectual property isn't likely to offset a high base, says Deutsche Bank's Sammi Xu in a note. The Chinese doll maker's online August sales declined 40% from a year earlier, deepening from a 21% decline in July, the analyst says, citing Moojing e-commerce data. Pop Mart's key product launch in 3Q was from the Twinkle Twinkle IP, which was its fastest-growing in 1H. However, this IP is unlikely to fully offset the high base effect from the launches of Labubu 3.0 and Mini Labubu in the same period last year, Xu says. The persistent weakness in sales "suggests domestic demand remains under pressure, with no clear signs of stabilization and limited evidence that recent product launches are sufficient to reverse the trend," the analyst says.