Hong Kong’s high-flying consumer stocks pulled back on June 5, with Laopu Gold dropping nearly 10% and Mixue Group falling over 7%, while Pop Mart showed relative resilience. The decline reflects profit-taking after significant gains, as Laopu and Mixue had surged 80% and 65% year-to-date before the correction. Analysts view the sell-off as a valuation reset rather than a fundamental shift, with long-term growth prospects for the sector remaining intact.
The market is becoming more discerning, favoring companies with strong earnings visibility. Pop Mart’s innovative product pipeline continues to support its premium valuation, while Mixue and Laopu face greater scrutiny due to their stretched multiples. Everbright Securities notes that while Mixue’s expansion remains rapid, its consumer-sector valuation requires caution, whereas Pop Mart’s proven profit growth justifies its higher pricing.
Despite short-term volatility, structural tailwinds—including Gen Z’s preference for branded experiences and Mixue’s aggressive overseas expansion—support the sector’s outlook. Investors may use the pullback to selectively add exposure to companies with sustainable growth drivers, particularly those trading at reasonable valuations relative to earnings potential. The correction underscores the importance of differentiation in a maturing market.
Related topics：
