Rabubu vs. Hello Kitty: Which Stock Looks Better Now? [Weekend Money]

The share price gap between Pop Mart, a character intellectual property (IP) company backed by the Rabubu brand, and Sanrio, which owns Hello Kitty, has been widening since the beginning of this year. Analysts say that the different stages of growth are driving the divergence in their stock prices.

Lisa (left), member of the girl group BLACKPINK, holding a Rabubu doll, and Jisoo (right) holding a Hello Kitty doll. SNS.

According to KB Securities, Pop Mart, which is listed on the Hong Kong Stock Exchange, has risen 37% year-to-date. In contrast, Sanrio, which is listed on the Japanese stock market, has fallen 3.4% over the same period. The point at which the share price gap began to widen was January 19, when Pop Mart announced a share buyback. The buyback was interpreted as management’s show of confidence in the company’s growth, and subsequent hits from new products and the announcement of plans to expand into Europe led investors to gain conviction in Pop Mart’s growth sustainability, driving the stock higher. Sanrio, on the other hand, has been weak due to a lack of additional catalysts.

Kim Seungmin, an analyst at KB Securities, said, "We believe the share price gap between the two companies stems from the difference in their growth stages," adding, "To assess the sustainability of Pop Mart’s growth, it is necessary to look back at Sanrio’s past growth trajectory, as it has experience with a similar pattern of overseas expansion."

Yonhap News Agency

Sanrio’s flagship character Hello Kitty is a long-running IP now in its 52nd year, and it has gone through numerous trials and errors. Sanrio’s overseas sales ratio surged to 30-40% in the early 2010s, but after 2013 the company experienced growth stagnation due to its heavy reliance on the single IP Hello Kitty and the emergence of competing content such as Frozen. Pop Mart has also seen its overseas sales ratio enter the 30-40% range starting in 2024, showing a growth trajectory similar to Sanrio’s past. Kim noted, "Pop Mart is differentiated in that it is preemptively guarding against the missteps Sanrio made in the past," adding, "Its strict IP management centered on directly operated stores, as well as its solid IP portfolio that includes Rabubu, Molly, Twinkle Twinkle, and Skullpanda, attest to this. If Pop Mart goes on to secure emotional bonds with consumers through investments in storytelling, such as animation, the lifespan of its IPs is likely to become even longer."

On February 9, Pop Mart announced that out of 400 million products sold in 2025, Rabubu accounted for 100 million units, or 25%. The company also stated that it would use the United Kingdom as a base to accelerate its full-scale expansion into Europe. Kim said, "This indicates that the company has built a healthy revenue structure that is not overly dependent on any single IP," and added, "Due to the high base in 2025, Pop Mart’s growth rate in 2026 may relatively slow, but overall top-line growth should continue, supported by expanding overseas sales and the success of new IPs." He went on to say, "If we apply the average 12-month forward price-to-earnings ratio (PER) of 20.5 times that Sanrio recorded during 2010-2013, when its overseas sales ratio was high, Pop Mart’s share price comes out to 301 Hong Kong dollars, implying 16% upside from the current level. Although short-term volatility may increase around the earnings announcement, given the clear direction of global top-line growth, a strategy of increasing positions on pullbacks remains valid."