Core Viewpoint - Huaxi Securities initiates coverage on Blukoo (00325) with a "Buy" rating, highlighting the company's rapid market capture through pricing strategy and frequent product launches, alongside long-term growth potential from IP development and overseas market expansion [1] Company Overview - Blukoo is the largest building block character toy manufacturer in China, achieving explosive growth through product transformation and channel expansion [2] - In 2023, Blukoo's GMV reached approximately 1.8 billion yuan, capturing 30.3% of the Chinese building block character toy market and 7.4% of the overall building block toy market [2] - The company is projected to have a revenue CAGR of 89% from 2021 to 2024, with expected revenue of 2.24 billion yuan in 2024 and a gross margin of 52.9% [2] - The core revenue driver is building block character toys, which account for 98.2% of total revenue, with major IPs like Ultraman, Transformers, and Hero Infinite contributing over 90% of gross profit [2] Industry Opportunities - The Chinese building block character toy market is expected to grow at a CAGR of 41.3% from 2023 to 2028, with the market size projected to exceed 32.5 billion yuan by 2028 [2] - The share of building block character toys within the overall character toy market in China is anticipated to increase from 14.3% in 2023 to 35.6% in 2028 [2] Competitive Landscape - The domestic building block character toy market is highly concentrated, with the top five companies holding a combined market share of 77% in 2023, while Blukoo leads with a 30.3% share [3] - Globally, the market is dominated by Bandai (39.5%) and LEGO (35.9%), presenting challenges for local companies to overcome technical and IP barriers [3] Competitive Advantages - Blukoo's success with the Ultraman IP demonstrates its ability to replicate core advantages across other IPs [4] - The company's growth strategy is supported by a combination of high cost-performance, deep IP operations, technical patents, channel penetration, and user co-creation [4] - Blukoo has established an IP matrix with over 50 popular licensed IPs and its own IP "Hero Infinite," achieving broad age group coverage [4] - The company boasts over 500 patents that support a standardized parts system, reducing new product development cycles to 6-7 months, compared to the industry average of 10-12 months [4] - The distribution network includes 511 dealers covering second-tier cities and over 80% of third-tier and below cities, with offline revenue expected to account for 92% in 2024 [4] Financial Projections - Revenue projections for 2025-2027 are 3.907 billion, 5.606 billion, and 7.403 billion yuan, representing year-on-year growth rates of 74%, 43%, and 32% respectively [5] - Net profit attributable to the parent company is expected to be 963 million, 1.468 billion, and 1.986 billion yuan for the same years, with growth rates of 340%, 52%, and 35% respectively [5] - EPS estimates for 2025-2027 are 3.87, 5.89, and 7.97 yuan, with corresponding PE ratios of 39.2, 25.7, and 19.0 based on the latest stock price [5]

Investment Rating - The report assigns a "Buy" rating to the company [4][7]. Core Insights - The company, Bluku, is the leading player in China's building block character toy market, achieving explosive growth through product transformation and channel expansion, with a GMV of approximately 1.8 billion CNY in 2023, capturing 30.3% of the building block character toy market share [1][2][13]. - The building block character toy market in China is expected to grow at a CAGR of 41.3% from 2023 to 2028, with the market size projected to exceed 32.5 billion CNY by 2028 [2]. - The company's success is driven by a robust IP matrix, including over 50 popular licensed IPs and proprietary IPs, alongside a strong focus on cost-effective product development and deep channel penetration [3][4]. Summary by Sections Company Overview - Bluku is recognized as China's largest building block character toy manufacturer, with a revenue structure heavily reliant on building block character toys, which accounted for 98.2% of revenue in 2024 [1][17]. - The company has seen rapid revenue growth, with a CAGR of 89% from 2021 to 2024, driven by the expansion of its distribution channels and the popularity of its IPs [30]. Market Analysis - The building block character toy market is highly concentrated, with the top five companies holding a combined market share of 77% in 2023, and Bluku leading with a 30.3% share [2]. - The global building block toy market is dominated by companies like Bandai and LEGO, indicating a competitive landscape that local companies must navigate [2]. Growth Strategy - Bluku's growth strategy includes leveraging its IP portfolio, which features successful franchises like Ultraman and Transformers, and enhancing its product offerings through technological innovation and user engagement [3][4]. - The company has established a comprehensive distribution network, with 511 distributors covering major cities and over 80% of lower-tier cities, resulting in a significant increase in offline sales [3][23]. Financial Projections - Revenue forecasts for Bluku indicate substantial growth, with expected revenues of 3.91 billion CNY in 2025, 5.61 billion CNY in 2026, and 7.40 billion CNY in 2027, reflecting year-on-year growth rates of 74%, 43%, and 32% respectively [4][9]. - The company's net profit is projected to turn positive by 2024, driven by its focus on high-margin building block character toys and effective cost management strategies [51].

Group 1 - The Hong Kong stock market for newly listed companies continues to decline, with notable drops in several stocks [1] - Blucco (00325.HK) fell over 6%, indicating significant market pressure [1] - Other companies such as Maogeping (01318.HK), Guming (01364.HK), and Mixue Group (02097.HK) also experienced declines of over 4%, over 3%, and nearly 2% respectively [1]

Group 1 - The stocks of Bruker (00325.HK), Mao Geping (01318.HK), and Gu Ming (01364.HK) have experienced declines of 5.34%, 3.28%, and 2.95% respectively [1]

港股次新股持续回落，布鲁可跌5.34%、毛戈平跌3.28%、古茗跌2.95%。 ...

Core Insights - The Chinese toy brand Blokus made its debut at the influential Latin American pop culture event "CCXPMéxico2025," showcasing its products to a global audience of anime, gaming, film, and toy enthusiasts [1] - Blokus is recognized as a leading brand in the building block toy category in China, featuring well-known global IPs such as Neon Genesis Evangelion, Hatsune Miku, Marvel, Saint Seiya, Transformers, Ultraman, Naruto, and Heroes Infinite [1] - The participation in "CCXPMéxico2025" marks a significant milestone in Blokus's globalization strategy, following its previous expansions into Chile, Peru, Panama, and Brazil [1] Product and Market Strategy - Blokus focused on products aimed at fans aged 16 and above, aligning with the main audience of the event [1] - The company has established a unique innovation and research system, holding over 500 patents, which supports its diverse product offerings [1] - Blokus has developed six classic series, including Hero5, Hero8, Hero10, Champion, Legend, and Fantastic, with a total of over 600 SKUs, characterized by high IP fidelity, ease of assembly, strong playability, and affordability [1] Global Expansion - Under the "all demographics, all price points, globalization" strategy, Blokus has achieved breakthroughs in multiple global markets, including Southeast Asia, Europe, North America, and Latin America [2] - The company aims to deepen its presence in the Latin American market by providing high-quality products and unique brand culture, enhancing the building experience for global players [2]

Group 1 - The core viewpoint of the article highlights that the stock of Blu-ray (00325.HK) has increased by over 4% following the company's recent launch of several well-known IPs in Latin America [1] Group 2 - The company has successfully expanded its market presence by introducing multiple popular intellectual properties (IPs) to the Latin American region [1]

Group 1: Stock Movements in Hong Kong Market - Youqu Holdings (02177) surged over 24% as it actively expands into the health sector with the launch of the Canadian anti-aging health food brand Vanpearl containing ergothioneine [1] - Longfly Fiber Optics (06869) rose nearly 10% following the commencement of mass production at its advanced Wuhan base, successfully producing its first 6-inch silicon carbide wafer [1] - SF Holding (06936) increased over 5% with a reported 19.1% year-on-year growth in express delivery volume in April 2025, reaching 16.32 billion parcels [1] Group 2: Notable Developments in Other Companies - Alibaba Pictures (01060) gained over 4% after announcing a name change to Damai Entertainment, indicating a focus on offline performances and IP derivatives [2] - Innovent Biologics (01801) rose over 4% after presenting promising results for its innovative drug IBI343 for treating advanced pancreatic cancer at the 2025 ASCO annual meeting [2] - Ideal Auto (02015) saw a rise of over 6% with May deliveries reaching 40,856 units, marking a 16.7% year-on-year increase [4] Group 3: U.S. Market Highlights - Ferguson (FERG.US) increased by 2.9% with Q3 sales of $7.621 billion, a 4.3% year-on-year growth, exceeding market expectations [5] - Credo Technology (CRDO.US) surged over 14% with Q4 revenue of $170.3 million, a 179.7% year-on-year increase [6] - Nvidia (NVDA.US) rose by 2.8% as UBS projected significant revenue from a new AI data center project in Texas [6]

Group 1 - The core viewpoint of the article highlights a significant surge in the stock prices of Hong Kong's consumer-related newly listed companies, with notable increases in specific companies [1] Group 2 - Companies such as Gu Ming and Mao Ge Ping saw their stock prices rise over 6%, while Blu-ray and Mi Xue Group experienced increases exceeding 4% [1] - The stock prices of these companies reached historical highs, indicating strong market performance and investor interest [1]

Core Insights - The article discusses the growth and strategic positioning of the company "Blokus," which is leveraging the legacy of LEGO to establish a strong market presence through innovative product offerings and IP collaborations [1][2]. Group 1: Market Positioning and Strategy - Blokus has successfully utilized the Ultraman IP to elevate its business, achieving a revenue of 1.096 billion yuan from Ultraman products in 2024, alongside 454 million yuan from Transformers [1]. - The company has signed contracts with 50 IPs, aiming to cover mainstream global IPs, and has developed a product portfolio of 682 SKUs, targeting various age groups [1]. - The "good but not expensive" product strategy differentiates Blokus in the market, focusing on a "three-full strategy" (full demographics, full price range, globalization) [1]. Group 2: Product Development and Sales Performance - Blokus's sales of role-playing toys are projected to increase from 36.5 million units in 2023 to 135 million units in 2024, with a strong pipeline of new products expected post-2026 [2]. - The company launched the second batch of the Noah Ultraman building blocks, selling 40,000 units at a price of 169 yuan, indicating strong demand for new products [2]. - In 2025, Blokus plans to introduce 800 new SKUs, focusing on role-playing toys and expanding its offerings for female consumers, which is expected to drive continued growth [2]. Group 3: Financial Projections - Revenue forecasts for Blokus are 3.96 billion yuan in 2025, 5.59 billion yuan in 2026, and 7.28 billion yuan in 2027, with net profits of 1.101 billion yuan, 1.508 billion yuan, and 2.041 billion yuan respectively [2]. - The earnings per share (EPS) are projected to be 4.42 yuan, 6.05 yuan, and 8.19 yuan for the years 2025, 2026, and 2027, with corresponding price-to-earnings (PE) ratios of 28.34, 20.69, and 15.28 [2]. - The global and Chinese role-playing toy market is expected to reach 540.7 billion yuan and 91.1 billion yuan by 2028, indicating significant growth potential for Blokus as a leading player in the building block sector [2].