Chinese toymaker Pop Mart said it expects net profit for the six months ended 30 June to surge at least 350% from a year earlier, with revenue set to rise about 200% to roughly RMB 13.7 billion (US$1.9 billion). A stock-exchange filing attributes the jump to the runaway success of Labubu, the company’s toothy, pointy-eared collectible doll. Retailing for about US$30 in “blind boxes,” Labubu has become a status symbol after endorsements from celebrities including Rihanna and BlackPink’s Lisa. Overseas markets accounted for almost 40% of Pop Mart’s sales last year, and limited editions have fetched up to US$150,000 at auction. JPMorgan estimates the latest guidance lifts the first-half net margin to around 32%. The bullish outlook failed to buoy the stock: Pop Mart’s Hong Kong-listed shares fell more than 6% on Wednesday, though they remain up about 600% over the past 12 months. Morningstar warned valuations look stretched, while Nomura raised its price target, saying store openings abroad and new character launches should underpin growth. Soaring demand has spawned production shortages, scalping and counterfeits. Regulators in Yiwu and Shanghai have seized tens of thousands of fake dolls, and Pop Mart has moved to trademark “Lafufu,” a spoof name used for knock-offs. The firm also faces potential tightening of China’s rules on mystery-box sales, a marketing tactic critics say encourages compulsive buying.