Investment Rating - The report gives a "Buy" rating for the company with a target price of HKD 136.71 per share based on a 35x PE for 2025 [3] Core Views - The company is positioned as a leading player in the domestic character building block toy market, leveraging the popularity of its products, particularly the Ultraman series, leading to explosive revenue growth in 2023 and 2024 [1][10] - The company has a strong competitive advantage through differentiated product offerings, effective content marketing strategies, and a robust supply chain [2][43] - The growth strategy focuses on expanding its IP matrix and penetrating lower-tier markets, with significant revenue contributions from key IPs [2][62] Summary by Sections Investment Logic - The company has transitioned to focus on character building blocks, achieving revenues of HKD 8.77 billion and HKD 22.4 billion for 2023 and 2024, respectively, representing year-on-year growth of 169% and 156% [1][10] - The gross margin is expected to improve to 52.6% in 2024, with a net profit of HKD 5.85 billion, reflecting a net profit margin of 26.1% [1][13] Competitive Advantages - The company offers high cost-performance products with a complete pricing range from HKD 9.9 to HKD 399, excelling particularly in the sub-HKD 50 segment [2][48] - The product development cycle is rapid, with 30-90 new SKUs launched quarterly, catering to various age groups [2][46] Growth Potential - The company has a diverse IP matrix, with the top four IPs contributing over 90% of revenue in 2024, including Ultraman, Transformers, and self-owned IPs [2][24] - The company has expanded its distribution network to approximately 150,000 offline points, focusing on lower-tier markets [2][65] Financial Forecasts - The adjusted net profit is projected to grow to HKD 9.08 billion, HKD 12.69 billion, and HKD 16.67 billion for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 55%, 40%, and 31% [3][6] - The company’s P/E ratio is expected to decrease from 29.83 in 2023 to 16.25 in 2025, indicating a favorable valuation trend [6][3]

Investment Rating - The report gives a "Buy" rating for the company with a target price of HKD 136.71 per share based on a 35x PE for 2025 [4] Core Views - The company is positioned as a leading player in the domestic character building block toy market, leveraging the popularity of its products, particularly the Ultraman series, leading to explosive revenue growth in 2023 and 2024 [2][14] - The company has a strong market share of 30.3% in the Chinese character building block toy market as of 2023, ranking first [2][22] - The financial outlook is positive, with projected adjusted net profits of HKD 9.08 billion, HKD 12.69 billion, and HKD 16.67 billion for 2025, 2026, and 2027 respectively, indicating significant growth [4] Summary by Sections Investment Logic - The company has transformed to focus on character building blocks, resulting in revenue of HKD 8.77 billion and HKD 22.4 billion for 2023 and 2024, respectively, representing year-on-year growth of 169% and 156% [2][14] - The gross margin is expected to improve to 52.6% in 2024, with a significant reduction in sales expense ratio to 12.6% [2][18] - The company plans to raise HKD 17.9 billion through its IPO to enhance its IP matrix, build factories, and improve product design and development capabilities [2] Competitive Advantages - The company has a differentiated product positioning with a focus on high cost-performance, offering a wide range of products priced from HKD 9.9 to HKD 399 [3][54] - The product development strategy includes a rich SKU offering with rapid iteration, launching 30-90 new SKUs each quarter [3][52] - The company has established a strong offline distribution network, covering approximately 150,000 retail points, primarily targeting lower-tier markets [3][39] Growth Potential - The company is expanding its IP matrix, with significant contributions from major IPs like Ultraman, Transformers, and its own Hero Unlimited, which collectively account for over 90% of revenue in 2024 [3][29] - The company is actively developing its presence in lower-tier markets, which presents further growth opportunities [3][75] - The character building block toy market in China is expected to grow from HKD 58 billion in 2023 to HKD 325 billion by 2028, with a CAGR of 41.3% [24][26] Financial Forecast and Valuation - The company is projected to achieve adjusted net profits of HKD 9.08 billion, HKD 12.69 billion, and HKD 16.67 billion for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 55%, 40%, and 31% [4][8] - The report anticipates a diluted EPS of HKD 2.35 in 2024, increasing to HKD 6.69 by 2027 [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue growth of over 156% in 2024, reaching 2.24 billion RMB, primarily driven by the sales of building block toys [6] - The gross profit increased by 184% to 1.18 billion RMB, with the gross margin improving from 47.3% to 52.6% due to the growth in building block toy sales and economies of scale [6] - The company is focusing on expanding its overseas market and developing new IPs, with overseas revenue increasing by over 5 times [6] - The report highlights a balanced IP structure with significant growth in various IPs, reducing reliance on a single IP [6] - The adjusted net profit for 2025-2026 has been revised upwards to 10.8 billion RMB and 16.5 billion RMB, respectively, with a projected net profit of 20.9 billion RMB in 2027 [6] Financial Summary - Total revenue for 2023 was 876.69 million RMB, with projections of 2,240.93 million RMB for 2024, 3,922.35 million RMB for 2025, 5,732.48 million RMB for 2026, and 7,022.76 million RMB for 2027 [1][7] - The company reported a net loss of 401.05 million RMB in 2024, but the Non-GAAP net profit is expected to reach 584.59 million RMB in the same year [1][7] - The earnings per share (EPS) is projected to improve from -1.61 RMB in 2024 to 8.12 RMB in 2027 [1][7] - The price-to-earnings (P/E) ratio is expected to decrease from -64.91 in 2024 to 12.86 in 2027 [1][7]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue growth of 156% in 2024, reaching 2.24 billion RMB, driven primarily by the sales of building block toys [6] - The gross profit increased by 184% to 1.18 billion RMB, with the gross margin improving from 47.3% to 52.6% [6] - The company is expanding its overseas market presence, with overseas revenue growing by 517% to 640 million RMB, now accounting for 3% of total revenue [6] - The introduction of new IPs is expected to enhance revenue growth potential, with significant new IP announcements made in March [6] Financial Summary - Total revenue projections for 2025-2027 have been revised upwards, with adjusted net profits expected to reach 1.08 billion RMB in 2025 and 2.09 billion RMB in 2027 [6] - The company’s earnings per share (EPS) is projected to improve from -1.61 RMB in 2024 to 8.12 RMB in 2027 [7] - The price-to-earnings (P/E) ratio is expected to decrease from 64.91 in 2024 to 12.86 in 2027, indicating improved valuation over time [7]

Investment Rating - The report maintains a "Buy" rating for the company [1][10] Core Insights - The company's profitability has significantly improved, with adjusted net profit increasing by 702.1% year-on-year [4] - The company reported a revenue of 2.24 billion RMB for 2024, representing a year-on-year growth of 155.6% [3][4] - The company is expanding its product offerings across all age groups and is focusing on penetrating lower-tier markets [5] - The company has established a strong presence in overseas markets, with overseas sales revenue growing by 518.1% [7] Financial Performance - In 2024, the company's gross margin was 52.6%, an increase of 5.3 percentage points year-on-year [4] - The adjusted net profit margin reached 26.1%, up by 17.8 percentage points year-on-year [4] - The company expects revenues of 3.89 billion RMB in 2025, with a projected adjusted net profit of 972 million RMB [9] Product and Market Strategy - The company has launched 682 SKUs covering various age groups, with a focus on popular IPs such as Ultraman and Transformers [5] - The revenue from building block toys decreased by 62.9% year-on-year, indicating a shift in consumer preference towards role-playing toys [5] - The company has introduced a 9.9 RMB Transformers SKU to expand its price range and target lower-tier markets [5] Sales Channels - Online sales accounted for 6.95% of total revenue, while offline sales made up 93.04%, showing a strong reliance on traditional retail channels [6][7] - The company has seen a significant increase in revenue from distribution sales, which reached 20.63 billion RMB, up by 181.5% year-on-year [7] Future Projections - The company is projected to achieve a revenue of 5.17 billion RMB by 2026, with an adjusted net profit of 1.29 billion RMB [9][10] - The expected return on equity (ROE) is forecasted to be 101% in 2025, indicating strong profitability potential [10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][7][18] Core Views - The company is expected to experience rapid revenue growth in 2024, with a projected revenue of 2.24 billion HKD, representing a year-on-year increase of 155.6%. The adjusted net profit is forecasted to be 585 million HKD, reflecting a significant increase of 702.1% year-on-year [7] - The company is capitalizing on the high demand in the trendy toy industry, leveraging a diverse product portfolio and an expanding IP matrix to strengthen its market position and increase market share [7][8] - The company is expected to continue its high growth trajectory in revenue and profit due to the expansion of its domestic offline channels and overseas business [7] Revenue Breakdown - In 2024, the company's revenue from character building toys is projected to be 2.20 billion HKD, a growth of 186.2%. Revenue from building blocks is expected to be 40 million HKD, a decline of 62.9% [8] - The revenue from key IPs in 2024 includes 1.10 billion HKD from Ultraman, 450 million HKD from Transformers, 310 million HKD from Heroes Infinite, and 170 million HKD from Kamen Rider, with Ultraman's revenue share decreasing to 48.9% [8] - The company's offline sales revenue is expected to reach 2.08 billion HKD, a growth of 171.1%, while overseas revenue is projected to be 60 million HKD, a significant increase of 518.2% [8] Profitability - The company's gross margin for 2024 is projected to be 52.6%, an increase of 5.3 percentage points, driven by the rapid growth in sales of character building toys [9] - The company's expense ratios for sales, management, R&D, and finance are expected to be 12.6%, 20.8%, 8.6%, and 7.6% respectively, with management expenses increasing significantly due to stock incentive costs [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6] Core Views - The company is experiencing rapid revenue growth, with a projected revenue of 2.24 billion HKD for 2024, representing a year-on-year increase of 155.6%. The adjusted profit is expected to be 585 million HKD, showing a significant increase of 702.1% year-on-year [6] - The company is diversifying its product offerings and IP matrix, reducing reliance on core IPs while expanding its market share through effective channel strategies [7][6] - The company is expected to continue its high growth trajectory in revenue and profit due to its expansion in domestic offline channels and overseas markets [6] Revenue Breakdown - In 2024, the company's revenue from character building toys reached 2.20 billion HKD, a growth of 186.2%, while revenue from building blocks decreased by 62.9% [7] - The revenue from the company's key IPs in 2024 includes 1.10 billion HKD from Ultraman, 450 million HKD from Transformers, 310 million HKD from Heroes Infinite, and 170 million HKD from Kamen Rider, with Ultraman's revenue share decreasing to 48.9% [7] - The company's offline sales revenue was 2.08 billion HKD, up 171.1%, with overseas revenue reaching 60 million HKD, a significant increase of 518.2% [7] Profitability - The company's gross margin for 2024 is 52.6%, an increase of 5.3 percentage points, driven by the rapid growth in character building toy sales [8] - The company's expense ratios for sales, management, R&D, and financial expenses were 12.6%, 20.8%, 8.6%, and 7.6% respectively, with management expenses increasing significantly due to stock incentive costs [8] Financial Summary and Valuation Metrics - The projected financial metrics for the company from 2023 to 2027 include: - Revenue: 877 million HKD (2023), 2.24 billion HKD (2024), 3.98 billion HKD (2025), 5.64 billion HKD (2026), 7.15 billion HKD (2027) - Net Profit: -206 million HKD (2023), -401 million HKD (2024), 1.03 billion HKD (2025), 1.52 billion HKD (2026), 1.99 billion HKD (2027) - EPS: -0.8 HKD (2023), -1.6 HKD (2024), 4.1 HKD (2025), 6.1 HKD (2026), 8.0 HKD (2027) [10]

Core Viewpoint - The company, Bluko, has shown significant revenue growth in 2024, but signals of slowing growth in the second half of the year raise concerns about its future performance [3][4]. Revenue Performance - In 2024, Bluko's revenue is projected to be approximately 2.241 billion yuan, representing a year-on-year increase of 155.6% [3]. - Adjusted annual profit is expected to be around 585 million yuan, reflecting a year-on-year growth of 702.1% [3]. - Revenue growth is expected to slow down in the second half of 2024, with a projected year-on-year increase of 110.76% compared to 237.6% in the first half [4]. IP Contribution - The top three IPs contributing to revenue are Ultraman (1.096 billion yuan, 48.9%), Transformers (454 million yuan, 20.26%), and Heroes Unlimited (310 million yuan, 13.8%) [5]. - Revenue from key IPs like Ultraman and Heroes Unlimited is expected to decline in the second half of 2024, with Ultraman's revenue projected at 496 million yuan, a 17.3% decrease from the first half [5]. Market Context - The overall consumer market in China is experiencing low growth, with retail sales increasing by only 3.7% in the first half of 2024 [6]. - Bluko's products, primarily building toys, are less influenced by subsidy-driven consumption and rely more on product performance [6]. Growth Strategy - Bluko is expanding its IP portfolio significantly, increasing from about 27 IPs at the end of 2023 to approximately 50 by the end of 2024 [7]. - The company is focusing on enhancing its cost-effectiveness, with average product prices dropping from 89 yuan in 2021 to 19 yuan in the first half of 2024 [8]. International Expansion - Bluko's overseas business is in its early stages, with revenue from international markets reaching 64 million yuan in 2024, accounting for only 2.9% of total revenue [9]. - The company is establishing subsidiaries in countries like the UK, Indonesia, and Singapore, and is participating in international events to boost its presence [9].

IP驱动与渠道扩张，布鲁可的营收神话如何炼成？ 财报数据显示，布鲁可2024年营收22.41亿元的核心动力，同比增加155.6%，源于其"IP矩阵+线下渠 道"的战略组合拳。 营收狂飙155%，仍亏损4亿，揭秘"中国乐高"布鲁 可的冰火两重天 2024年，中国玩具市场在Z世代"谷子文化"浪潮中狂飙突进。其中，全球拼搭角色类玩具预计2024年市 场规模达404亿元，2023-2028年CAGR预计将达29%，是全球拼搭类玩具增速最快的细分市场。 在这片繁荣背景下，被誉为"中国版乐高"的布鲁可(00325.HK)交出上市首份成绩单：营收同比暴涨 155.6%至22.41亿元，毛利率突破52.6%，却在母公司股东应占亏损中扩至4.01亿元。 这家背靠50个全球顶级IP、拥有2亿注册用户的玩具巨头，正演绎着"高增长与亏损并存"的魔幻剧本。 从收入构成来看，拼搭角色类玩具的销售收入增长强劲，达到22.01亿元，其中奥特曼IP贡献超半壁江 山，成为营收增长的主要驱动力。 这一增长得益于公司成功的IP组合及销售网络的持续扩展。线下销售额达到20.85亿元，占总收入的 92.1%，凸显了线下渠道在公司销售体系中的重要地位。 ...

Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 2,240,929 thousand, representing a 155.6% increase compared to RMB 876,686 thousand in 2023[3] - Gross profit for the same period was RMB 1,178,806 thousand, up 184.1% from RMB 414,922 thousand in the previous year[3] - The adjusted annual profit (non-IFRS measure) was RMB 584,588 thousand, a significant increase of 702.1% from RMB 72,882 thousand in 2023[3] - The annual loss for the year was RMB 398,044 thousand, which is a 91.8% increase compared to RMB 207,481 thousand in 2023[4] - Basic and diluted loss per share improved to RMB (1.38) from RMB (2.69), reflecting a 94.9% reduction in loss per share[4] - The adjusted net profit margin (non-IFRS measure) was 26.1%, up from 17.8% in 2023, indicating improved profitability[3] - The company reported a pre-tax loss of RMB (295,682) thousand, which is a 55.8% increase from RMB (189,839) thousand in 2023[4] - Other income increased significantly to RMB 17,141 thousand in 2024 from RMB 5,987 thousand in 2023, primarily driven by government grants and bank interest income[32] - The group reported a pre-tax loss of RMB 401,047 thousand for 2024, worsening from a loss of RMB 206,100 thousand in 2023, reflecting increased operational costs[41] - Basic and diluted loss per share increased to RMB 2.69 in 2024 from RMB 1.38 in 2023, indicating a decline in profitability[41] - The company recognized a significant increase in employee benefits expenses, totaling RMB 656,331 thousand in 2024, compared to RMB 151,991 thousand in 2023, largely due to stock-based compensation[33] - The company recorded a fair value loss on convertible redeemable preferred shares of RMB 542.0 million in 2024, up from RMB 274.1 million in 2023[103] - Income tax expenses rose by 480.2% from RMB 17.6 million in 2023 to RMB 102.4 million in 2024, driven by increased current and deferred tax expenses[104] Revenue Breakdown - Offline sales contributed RMB 2,084,861 thousand in 2024, compared to RMB 769,071 thousand in 2023, marking an increase of about 171.5%[28] - Distributor sales amounted to RMB 2,062,865 thousand in 2024, up from RMB 732,700 thousand in 2023, reflecting a growth of approximately 181.5%[28] - Online sales reached RMB 155,675 thousand in 2024, compared to RMB 106,249 thousand in 2023, indicating an increase of around 46.5%[28] - Revenue from the building block character toys was RMB 2,201.1 million, accounting for 98.2% of total revenue, while large particle toys generated RMB 39.4 million, making up 1.8%[66] - The percentage of revenue from building block role-playing toys increased from 87.7% in 2023 to 98.2% in 2024, indicating a strong focus on this product line[87] - The company's overseas sales revenue grew by 518.2% from RMB 10.4 million in 2023 to RMB 64.2 million in 2024, mainly due to increased overseas sales of building block role-playing toys[91] Expenses and Liabilities - Research and development expenses increased to RMB 192,467 thousand, compared to RMB 94,657 thousand in the previous year[4] - Total sales and distribution expenses rose to RMB 283,122 thousand, compared to RMB 189,280 thousand in the previous year[4] - Sales and distribution expenses rose by 49.6% from RMB 189.3 million in 2023 to RMB 283.1 million in 2024, with marketing and promotional expenses increasing by RMB 38.0 million[96] - Administrative expenses surged by 844.6% from RMB 49.2 million in 2023 to RMB 465.0 million in 2024, representing 20.8% of total revenue[98] - The company incurred total tax expenses of RMB 102,362 thousand in 2024, a significant increase from RMB 17,642 thousand in 2023, driven by deferred tax liabilities[39] - Trade payables rose to RMB 360,069 thousand in 2024 from RMB 198,871 thousand in 2023, indicating higher operational liabilities[44] - Trade payables and notes payable increased significantly to RMB 566.7 million in 2024 from RMB 259.7 million in 2023, representing a 118.5% increase[45] - The company’s total liabilities increased to RMB 839.02 million in 2024 from RMB 436.13 million in 2023, representing a 92.5% increase[45] Assets and Cash Flow - Non-current assets increased to RMB 390,551,000 from RMB 330,400,000, representing a growth of 18.2% year-over-year[9] - Current assets rose significantly to RMB 1,215,440,000, up from RMB 682,256,000, marking an increase of 78.1%[9] - Cash and cash equivalents rose to RMB 719.96 million in 2024, up from RMB 360.84 million in 2023, marking a 99.4% increase[54] - The total cash and cash equivalents, including pledged deposits, amounted to RMB 753.1 million as of the end of the reporting period, compared to RMB 368.9 million in 2023[56] Corporate Developments - The company was incorporated in the Cayman Islands and primarily engages in the design, development, and sale of toys[12] - The company listed on the Hong Kong Stock Exchange on January 10, 2025[13] - The company has established a specialized R&D team consisting of 472 employees, focusing on toys, consumer products, and pop culture[64] - The company has a patent portfolio of 514 domestic patents, 75 domestic invention patents, and 24 overseas patents[64] - The company has two self-developed IPs, "Transforming Bruc" and "Heroes Unlimited," and approximately 50 licensed IPs, increasing from about 27 IPs as of December 31, 2023[69] - The company plans to enhance product design and R&D capabilities with a net amount of HKD 447.70 million, representing 25% of the total funds raised, expected by June 30, 2028[123] - The company aims to enrich its IP matrix with an investment of HKD 358.00 million, representing 20% of the total funds raised[123] Market and Sales Strategy - The company plans to invest further in sales and marketing, particularly in content-driven marketing activities, to boost brand awareness in both domestic and international markets[82] - The company has established a multi-channel sales network, with offline sales revenue increasing significantly from RMB 769.1 million in 2023 to RMB 2,084.9 million in 2024[90] - The company participated in various toy exhibitions, showcasing new product innovations, including the Sesame Street series at the Singapore Comic Con[76] - The company maintains a comprehensive quality control system that adheres to domestic and global quality standards, including GB6675-2014, ASTM F963, and EN71[79] Shareholder Information - The company did not declare or pay any dividends for the years ending December 31, 2024, and December 31, 2023[57] - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2024[120] - The annual general meeting of shareholders is scheduled for June 6, 2025, with share transfer registration suspended from June 3 to June 6, 2025[125]