Summary of Key Points
The "New Consumer Four Sisters" – Lao Pu Huang Jin (Old Shop Gold), Mi Xue Group, Mao Ge Ping, and Pa Po Ma Te – which were highly favored by the Hong Kong stock market last year – have all experienced declines in their stock prices and valuations this year. From January to July 2026, their stock prices have dropped by up to 46%, and their price-earnings ratios have plummeted from several dozen times (such as Lao Pu Huang Jin's 140 times) to just 10-21 times. The reasons for this are as follows: First, the growth rates of their earnings have returned to a more normal level after the explosive growth seen last year; the "temporary dividends" that supported their high valuations (such as rising gold prices and popular IP products) have faded. Additionally, global funds have shifted towards the AI sector, and the market has moved from focusing on hype to evaluating actual performance, demanding that these companies prove their long-term growth potential with tangible financial data.
1. Stock Prices from Double-Digits Increases to Dramatic Drops: The Four Sisters Have Co-Experienced a Cooling Down This Year
Last year, the stock prices of these four companies soared: Lao Pu Huang Jin increased by 25 times after its listing, Pa Po Ma Te rose by 110% for the entire year, and Mi Xue Group saw a rapid rise shortly after its listing. However, this year the situation has completely changed:
- Lao Pu Huang Jin: Its stock price has dropped by more than 70%, with a decrease of 46% from January to July, and its price-earnings ratio has fallen from 140 times to 10.7 times.
- Mi Xue Group: Its stock price has decreased by 44.7%, with a price-earnings ratio dropping from 45 times to 13.2 times.
- Mao Ge Ping: Its stock price has dropped by 27%, and its price-earnings ratio has fallen from 60 times to 21.6 times.
- Pa Po Ma Te: Its stock price has decreased by 11.8%, and its price-earnings ratio has dropped from 105 times to 15.3 times.
In simple terms, last year the market was willing to pay $140 for every $1 in profit generated by Lao Pu Huang Jin (a price-earnings ratio of 140), but now it is only willing to pay $10 ($10.7) – meaning people no longer consider it as valuable as before.
2. Why Were Their Prices So High Last Year? Three Factors That Contributed to the High Valuations
The market assigned high prices to these companies last year for three main reasons:
1. Earnings Growth: In 2025, Lao Pu Huang Jin's revenue increased by 221% and its profits by 230%, while Pa Po Ma Te's profits grew by 308% – impressive growth rates.
2. Temporary Dividends: Lao Pu Huang Jin benefited from rising gold prices, Pa Po Ma Te gained popularity due to its hit product LABUBU worldwide, and Mi Xue benefited from the excitement surrounding its listing and rapid expansion of stores.
3. Long-Term Potential: The market envisioned these companies becoming major players in their respective industries: Lao Pu Huang Jin as a Chinese luxury brand, Pa Po Ma Te as a global trendsetter, and Mao Ge Ping as a high-end domestic beauty brand.
These factors combined led to high valuations, as investors were willing to invest in their potential for future growth.
3. Why Have Their Prices Dropped This Year? The Supporting Factors Have Changed, and Funds Have Moved On
This year, these factors no longer support their high valuations:
- Slowing Growth Rates: For example, Pa Po Ma Te's revenue is expected to grow by only 21% in 2026 (compared to 184% last year), indicating a slowdown in growth.
- Disappearance of Temporary Dividends: Gold prices have fluctuated, the popularity of LABUBU has faded, and the novelty of their listings has worn off.
- Fund Diversification: Global funds have shifted towards the AI sector, causing the Hong Kong consumer sector as a whole to decline by 19%. Additionally, with many new stocks and restricted shares being released this year, investors have spread their investments across other companies.
The market is now more pragmatic: "Hype alone isn't enough; real profitability is what matters."
4. Each Company Faces Unique Challenges: Where Do the Market Disagreements Lie?
Each company is facing different questions from investors, and analysts are divided into two camps:
- Pa Po Ma Te: Can it continue to rely on hit products or can it develop new IP brands that become globally successful?
- Cautious view: Concerns about LABUBU's fading popularity and slow overseas expansion.
- Optimistic view: Belief in its ability to globalize and create new IP brands.
- Lao Pu Huang Jin: Is it just an ordinary gold company or can it truly become a Chinese luxury brand?
- Cautious view: Falling gold prices could lead to price cuts, which may damage the brand; not cutting prices could result in a loss of customers.
- Optimistic view: Its high-end design and target customer base (high net worth individuals) are potential strengths.
- Mi Xue Group: Can it still make money from each store despite opening more stores? Can it profit overseas?
- Cautious view: Concerns about declining efficiency at individual stores and initial difficulties in overseas operations.
- Optimistic view: Belief in its supply chain and advantages in lower-tier markets.
- Mao Ge Ping: Can the space for high-end domestic beauty products continue to grow?
- Its highest price-earnings ratio among the four companies indicates market interest in high-end domestic brands, but new products and brand strength need to be continuously demonstrated.
5. Adjustment Is Not a Bad Thing: The Future Depends on Whether the "Stories" Can Come True
This round of adjustment does not mean these companies have failed; it's the market re-evaluating their potential by distinguishing between temporary successes and long-term capabilities. The key for the future is for them to prove:
- That Pa Po Ma Te can continue to create successful IP products and generate profits overseas.
- That Lao Pu Huang Jin can maintain its brand strength despite fluctuations in gold prices.
- That Mi Xue can improve store efficiency and profitability overseas.
- That Mao Ge Ping can sustain its position as a high-end domestic beauty brand.
If these "stories" prove valid, their stock prices may recover; otherwise, their valuations could continue to adjust. In other words, the market is now asking for concrete results rather than just promises about the future.
This adjustment marks a transition for the new consumer industry from rapid growth to more focused development. Leading companies that can transform temporary advantages into long-term strengths have the opportunity to regain market recognition.