By Sherry Qin
Chinese retail brand Miniso plans to spin off its pop-culture collectibles unit and separately list it in Hong Kong, seeking to replicate the success of Labubu maker Pop Mart.
Guangzhou-based Miniso has submitted a listing application for its unit Top Toy to the Hong Kong stock exchange, with UBS, JPMorgan and Citic Securities as joint sponsors, the company said in a late Friday filing. Top Toy will remain a Miniso subsidiary after the spinoff.
The company hopes the spinoff will better reflect the value of Top Toy as a dedicated pop-culture toy brand. It is also betting that the move will appeal to investors predicting high-growth opportunities in the pop-culture toy business.
As a specialized toy brand, Top Toy enjoys higher average selling prices compared with Miniso, which sells lifestyle products ranging from home decor and home electronics to stationery and gifts, Jefferies analysts wrote in a recent note.
Both brands are independently developing self-owned intellectual properties, and management expects open market competition between the two to help optimize the group's overall competitiveness and pricing power, the analysts said after meeting with Miniso executives and visiting stores.
Top Toy's planned listing comes hot on the heels of the global frenzy over Labubu dolls made by Pop Mart International. The ugly-cute monsters are part of the roster of collectibles it sells in so-called blind boxes that make each purchase a surprise for buyers.
Celebrities including K-pop star Lisa of Blackpink and Rihanna have been spotted carrying Labubus, sparking a worldwide craze for the collectibles.
The doll's popularity is showing no signs of abating, at least for now. Pop Mart's shares have nearly tripled this year following a more than fourfold increase in 2024. The Chinese toy maker expects annual revenue to more than double this year, after its top line tripled in the first half.
For Miniso, the hope is that it can cash in on the trend of Chinese consumers placing greater value on products and services that cater to their personal interests and emotional well-being. Amid global uncertainty and economic woes in China, consumers are making feel-good purchases, snapping up Labubus and bubble teas instead of saving for big-ticket purchases like houses or home appliances.
Hong Kong-listed shares of Miniso were 3.2% higher at midday on Monday.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
September 29, 2025 00:40 ET (04:40 GMT)
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