Duan Yongping, often hailed as the 'Warren Buffett of China' and the architect of the BBK electronics empire, has made a decisive move into the collectible toy market. Through a series of social media disclosures, Duan revealed he has begun building a position in Pop Mart (09992.HK) using a 'selling puts' strategy. This tactical maneuver allows him to collect premiums while standing ready to acquire shares at a discount if the price dips below his strike price, reflecting a sophisticated entry into a sector he once publicly dismissed.
Only months ago, Duan’s stance on Pop Mart was one of profound skepticism. He compared the 'blind box' craze to transient fads like hula hoops or digital pets, questioning the sustainability of its business model. However, a deep dive into the company’s 2025 financial performance and a field visit to its London Westfield store sparked a radical change of heart. Seeing that local non-Chinese customers accounted for 90% of the London store’s traffic convinced Duan that Pop Mart is no longer just a domestic trend but a pioneer of Chinese cultural internationalization.
The investment comes at a time of significant market volatility for the toy maker. Despite a stellar 2025 fiscal year—where revenue surged 184% to 37.1 billion RMB and net profit ballooned by 284%—the stock suffered a massive sell-off. The market panicked over conservative 2026 growth guidance of 20%, which seemed lackluster compared to the previous year’s triple-digit explosion. This divergence between blockbuster earnings and a collapsing share price created what value investors call the 'margin of safety.'
Duan’s entry serves as a masterclass in his '懂了才投' (invest only when you understand) philosophy. By analyzing the intellectual property (IP) moats—such as the LABUBU series which alone generated 14 billion RMB—and the brand’s ability to transcend cultural barriers, he determined that the long-term value outweighs short-term growth deceleration. While institutional funds were trimming their holdings in late 2025, Duan saw a 'right price' window, noting that Pop Mart’s valuation had fallen well below global peers like Disney and Bandai Namco.