Short interest in Pop Mart has risen to 12.67% of shares outstanding, up from 11.3% in April, as the stock has seen a significant decline from its peak of 153 Hong Kong dollars ($19.5) last August. Although the shares have rebounded by 8% since hitting a year-to-date low in April, they remain the only stock among the 10 most-shorted in Hong Kong where short sellers are currently losing money.
Analysts express mixed views; while Citigroup's Lydia Ling maintains a buy rating with a target price of 263 Hong Kong dollars, citing long-term growth potential, Bernstein's Melinda Hu holds an underperform rating with a target of 181 Hong Kong dollars, pointing to signs of weakening demand and management's acknowledgment of slower growth.
The high utilization of shares for borrowing, at 92.4%, complicates new short positions, making it more expensive for short sellers to enter the market. This situation highlights the tension between differing investor perspectives on Pop Mart's future amid concerns over its growth sustainability and recent product launches