(Yicai) Aug. 22 -- Analysts are closely watching Pop Mart International Group’s ability to continue developing strong intellectual property, after the Chinese maker of the elf-like Labubu toy collectibles logged a 12-fold surge in first-half sales in the Americas.

Pop Mart’s store at the Westfield World Trade Center, the biggest shopping mall in Manhattan, New York, is attracting heavy foot traffic, Yicai learned during an on-site visit.

Inside the store, both Chinese and English are commonly heard, and some popular products are sold out. Prices in the US market start at USD19.90, with some items costing between USD35 and USD40. A customer told Yicai that popular items can be pre-ordered through Pop Mart’s North American mobile app and website, and that restocking is faster than in China. Orders over USD29.90 qualify for free shipping. Online sales account for 40 percent of Pop Mart’s revenue.

For analysts, the blind-box toy craze has opened a new field of study, offering insights into the evolving preferences of younger consumers. Raymond Ma, chief investment officer at Invesco China, said the next decade will be a golden era for China-made IP, and some of the key growth drivers are globalization and emotional resonance.

Pop Mart’s shares have surged in Hong Kong since the beginning of the year, nearly quadrupling its market valuation. However, analysts believe extending the lifecycle of its IPs and strengthening emotional connections with consumers will be key challenges as the company seeks to expand globally and sustain its valuation.

The firm has delivered impressive business results this year. From January to June, revenue jumped to CNY13.9 billion (USD1.9 billion), more than tripling from a year earlier, while adjusted net profit soared nearly fivefold to CNY4.7 billion (USD650 million). The Americas region stood out, generating nearly CNY2.3 billion in revenue, a rise of over 1,100 percent.

According to data from Morgan Stanley, Pop Mart’s gross profit margin increased to 70.3 percent in the first half, up from 64 percent. Overseas stores outperformed those in China, including Hong Kong, in both gross margins and same-store sales, supported by pricing strategies and economies of scale.

But how to predict future sales? Michelle Cheng, managing director at Goldman Sachs Asia, said an IP’s longevity determines the sustainability of its valuation. Historically, the life cycle of popular IPs has lasted two to three years. However, turning IPs into serialized content and maintaining fan engagement can extend their relevance. Japan’s Gundam robot anime series, for instance, has been around for more than five years.

Pop Mart’s 13 major artist IPs have each generated more than CNY100 million (USD13.9 million) in revenue. One of the most successful is the Monsters series, which includes the grinning Labubu plush toys, earning CNY4.8 billion.

Four leading IPs, including Molly -- a line of pouting girl figurines designed by Hong Kong-based artist Kenny Wong -- account for nearly 60 percent of Pop Mart’s revenue. Last year, Molly and the Monsters had sales of USD300 million and USD400 million, respectively. In comparison, Hello Kitty, one of the most successful character franchises in history, achieved USD1.8 billion in sales, underscoring Pop Mart’s potential for further growth.

Editor: Emmi Laine