Pop Mart, the Chinese toy company behind the viral “ugly-cute” Labubu figurine, says it is on track to smash revenue expectations this year, with sales potentially exceeding $4 billion.

Chief executive Wang Ning told analysts this week that the company’s original target of 20 billion yuan ($2.78 billion) in revenue for 2025 is already within reach — and that 30 billion yuan ($4.18 billion) “should also be quite easy.” The upbeat forecast came on the back of record half-year results, which saw net profit jump nearly 400% as demand surged overseas.

Founded in 2010, Pop Mart has built its brand around collectible toys sold in “blind boxes” — sealed packaging that conceals which figurine customers are buying. The format has been compared to trading cards and loot boxes in gaming, tapping into the psychology of scarcity and surprise.

At the centre of its current boom is Labubu, a snaggle-toothed character from designer Kasing Lung’s “The Monsters” series. Once a cult favourite in Asia, Labubu has gone mainstream thanks to celebrity fans like Rihanna and David Beckham, who have been photographed carrying the figures as handbag charms. Demand has become so frenzied that auctions in Beijing have seen Labubu toys sell for thousands of dollars.

Pop Mart is now preparing to broaden Labubu’s appeal with a miniature version designed as a phone accessory, set to launch this week. In the first half of 2025 alone, “The Monsters” series generated 4.81 billion yuan ($670 million), representing more than a third of total revenue. Other top-selling lines include Molly and Crybaby, each of which cleared the billion-yuan mark.

Geographically, Pop Mart is betting big on overseas growth. Sales in North America and Asia-Pacific are expected to match China’s 2024 levels this year, according to Wang. The company already operates around 40 stores in the US and plans to open 10 more by year’s end, followed by a phase of “relatively rapid” expansion. Management is also eyeing new markets in the Middle East, Central Europe, and Latin America.

Investors have responded with enthusiasm. Pop Mart’s Hong Kong-listed shares are up more than 230% year-to-date, briefly giving the company a higher market value than legacy giants such as Mattel, maker of Barbie, and Sanrio, parent of Hello Kitty.

Still, not everyone is convinced. Morningstar analyst Jeff Zhang cautioned that shares “likely remain overpriced as investors are overlooking the high business risk in the long run,” even as he acknowledged the potential for more launches and restocks to drive near-term earnings.

Looking ahead, Pop Mart’s ambitions extend beyond toys. Executives have floated plans to expand into entertainment, envisioning animated films and even theme parks featuring the company’s characters — a bid to build a Disney-style cultural empire. While those projects may take years to materialise, the immediate priority is clear: keep Labubu and its fellow characters flying off the shelves.