Group 1 - 52TOYS officially submitted its prospectus to the Hong Kong Stock Exchange on May 22, indicating plans for a main board listing [1] - The company is the latest IP toy firm to seek a public listing in Hong Kong, following the market popularity of Bubble Mart and Blok [1] - Citigroup and Huatai International are serving as joint sponsors for the listing [1]

Group 1 - The core point of the news is that Blokko will be included in the Hang Seng Index, effective June 9, 2025, which is expected to enhance the company's liquidity and increase capital participation [1] - The Hang Seng Index series quarterly review results announced on May 16, 2025, indicate that the number of constituent stocks will increase from 502 to 505, with Blokko (00325), Guming (01364), and Mixue Group (02097) being added [1] - The recent performance of the card game and Pop Mart (Hong Kong Stock Connect) has shown strong growth, further enhancing the trading sentiment and valuation of the trendy toy sector [1] Group 2 - The third BFC Creative Competition has seen nearly 15,000 entries since its launch on April 1, 2025, with a threefold increase in the quality of entries compared to the first season, indicating high engagement from players [2] - Blokko plans to hold nearly 20,000 offline BFC Creative Competitions in 150 cities across the country by 2025, with a tiered layout strategy for events in first, second, and third-tier cities [2] - The BFC events serve as a platform for creativity and user-brand co-creation, fostering a unique BFC community that connects global players and drives brand growth [2] Group 3 - Continuous product innovation is expected to drive consumer demand, enhance consumer stickiness, and strengthen interactions with distributors and players [3] - The company's ability to leverage classic IPs like Ultraman in the building block market is anticipated to expand market size and reach a broader audience [3] - Revenue forecasts for the company are projected at 3.8 billion RMB, 5.3 billion RMB, and 7 billion RMB for 2025-2027, with net profits of 960 million RMB, 1.48 billion RMB, and 2.08 billion RMB respectively [3]

Core Viewpoint - The company reported impressive financial results for 2024, with revenue reaching RMB 2.241 billion, a year-on-year increase of 155.6%, and a net profit of RMB -0.401 billion, up 94.59% year-on-year [1] Financial Performance - The company achieved a revenue of RMB 2.241 billion in 2024, reflecting a 155.6% increase compared to the previous year [2] - The net profit for 2024 was RMB -0.401 billion, which is a 94.59% increase year-on-year [1] Product and IP Focus - The company shifted its focus to character-building toys, with revenue from this segment reaching RMB 2.201 billion, a year-on-year increase of 186.22%, accounting for 98.2% of total revenue [2] - The four major IPs, Ultraman, Transformers, Hero Infinite, and Kamen Rider, contributed significantly to sales, with Ultraman generating RMB 1.096 billion (48.9% of total revenue) and showing a year-on-year growth of 96.83% [3] Sales Channels and Market Expansion - Offline sales through distributors accounted for the majority of revenue, with RMB 2.063 billion from offline channels, a 181.54% increase year-on-year, representing 93% of total revenue [3] - The domestic market saw revenue of RMB 2.177 billion, a 151.27% increase, while overseas revenue reached RMB 0.064 billion, a remarkable 518.16% increase year-on-year [3] Strategic Initiatives - The company introduced the concept of a "product ecosystem" at the global partner conference, emphasizing user needs and innovation in product development [4] - Plans for future growth include expanding product offerings to target female and adult consumers, deepening market penetration in lower-tier cities, and enhancing overseas market presence [4][5] Future Projections - Revenue projections for 2025-2027 are RMB 4 billion, RMB 6 billion, and RMB 7.8 billion, with year-on-year growth rates of 79%, 50%, and 30% respectively [5] - Expected net profits for the same period are RMB 0.95 billion, RMB 1.55 billion, and RMB 2.18 billion, with significant year-on-year growth rates [5]

Group 1 - The stock price of Bluko (00325.HK) closed at HKD 160.000 on May 20, reflecting a 3.63% increase from the previous trading day, with an intraday high of HKD 161.600, marking a nearly one-year high [1] - On the same day, the net capital flow for Bluko was negative, with inflows of HKD 82.65129 million and outflows of HKD 90.12549 million, resulting in a net outflow of HKD 7.4742 million [1] Group 2 - Bluko Group Limited is a leader in the Chinese building block character toy market, leveraging over 500 patents and partnerships with approximately 50 well-known IPs to provide affordable and diverse building block character toys [2] - The company achieved a GMV of approximately RMB 1.8 billion in 2023, with a growth rate exceeding 170% compared to the previous year [2] - In 2023, Bluko held a market share of 30.3% in the Chinese building block character toy segment and 7.4% in the overall building block toy market, with the total market size for building block character toys in China being RMB 5.8 billion [2]

Group 1 - CICC expects companies like Mixue Group (02097) and Bruker (00325) to be included in the Hong Kong Stock Connect list following the recent adjustments to the Hang Seng Index [1] - Horizon Robotics, listed in October last year, has met the requirements for inclusion in the Hong Kong Stock Connect after being added to the Hang Seng Index in February [1] - CICC estimates that passive fund inflows for companies like ZTO Express and NetEase will be significant, with expected inflows of $128 million and $218 million respectively [1] Group 2 - The Nasdaq Golden Dragon China Index fell by 0.17%, while major US indices showed slight gains, with the Dow Jones up 0.32% [2] - Notable gains were seen in the pharmaceutical and precious metals sectors, with Novavax rising over 15% [2] - The Hang Seng Index ADR increased by 0.52%, indicating a positive sentiment in the Hong Kong market [2] Group 3 - The World Health Organization's Director-General emphasized the need for global cooperation to address unprecedented public health challenges during the 78th World Health Assembly [3] - The WHO faces a budget shortfall of $1.7 billion over the next two years, which poses a significant challenge to its global health mission [3] Group 4 - Huawei's HarmonyOS-powered personal computers were officially launched, marking a significant breakthrough for domestic operating systems in the PC sector [4] - The HarmonyOS computers support over 1,100 external device connections and have adapted over 1,000 applications [4] Group 5 - Shandong Xinhua Pharmaceutical received approval for the listing of Eicosapentaenoic Acid Ethyl Ester, marking a significant milestone in its product development [5] - The approval was granted by the National Medical Products Administration after the company submitted its application in June 2023 [5] Group 6 - Huaxing Capital announced the successful listing of its portfolio company, Weigao Blood Purification Products, on the Shanghai Stock Exchange [6] - Tian Cai Holdings is negotiating to provide instant delivery systems for major online supermarkets, enhancing its service offerings [6] Group 7 - BYD established its European headquarters in Hungary, reinforcing its commitment to long-term development in Europe [7] - The establishment of the headquarters signifies deep integration with the local automotive industry [7] Group 8 - New China Life Insurance was approved to participate in the third batch of long-term investment reform trials, aiming to enhance capital market development [8] - The company plans to establish the third phase of the Honghu Fund to facilitate long-term investments [8] Group 9 - Jianbei Miao Miao expects a significant increase of at least 50% in its annual net profit attributable to shareholders for the fiscal year ending March 31, 2025 [9] Group 10 - Leap Motor reported a revenue of 10.02 billion yuan for Q1 2025, representing a year-on-year growth of 187.1% [10] - The growth was driven by a 162.1% increase in sales volume and a 4.9% increase in revenue per vehicle [10] Group 11 - Alibaba Health reported a 13.2% increase in revenue to 30.598 billion yuan for the fiscal year ending March 31, 2025, with adjusted net profit rising by 35.6% [11] - The company achieved a profit attributable to shareholders of 1.432 billion yuan, marking a 62.14% increase [11] Group 12 - Alibaba Pictures reported a 33% increase in revenue to 6.702 billion yuan for the fiscal year ending March 31, 2025, with a net profit attributable to shareholders of 364 million yuan [12] Group 13 - Trip.com Group reported a net operating revenue of 13.8 billion yuan for Q1 2025, reflecting a 16% year-on-year increase [13] - The net profit attributable to shareholders remained stable at 4.3 billion yuan compared to the previous year [13] Group 14 - CSPC Pharmaceutical received FDA fast track designation for its CPO301 drug, aimed at treating advanced non-small cell lung cancer [14] - The drug has also been approved for clinical trials in China [14]

Key Insights - The report highlights the overall upward trend in various industries, including oil and petrochemicals, building materials, electronics, textiles, automotive, non-bank financials, and environmental protection, while sectors like electric equipment, machinery, food and beverage, pharmaceuticals, home appliances, banking, real estate, public utilities, and retail are experiencing a downward trend [2][3][5] Industry Overview - The semiconductor photomask market is dominated by US and Japanese companies, with a strong demand for domestic alternatives due to low domestic production rates [3] - The global photomask market reached USD 5.2 billion by 2022, showing consistent growth from 2012 to 2020 [3] - The CDMO sector is projected to generate revenue of CNY 83.191 billion in 2024, a decrease of 2.92% year-on-year, while the first quarter of 2025 shows a recovery with a revenue increase of 11.35% year-on-year [5] - The CRO sector is expected to face challenges in 2024 due to high base effects, but a significant recovery is anticipated in Q1 2025, with a net profit increase of 104.57% year-on-year [5] Company Performance - The report indicates that the company achieved a revenue of CNY 67.46 billion in 2024, reflecting a year-on-year growth of 13.24%, with a net profit of CNY 9.40 billion, up 2.86% year-on-year [11] - In Q1 2025, the company reported a revenue of CNY 16.66 billion, a slight increase of 1.41% year-on-year, and a net profit of CNY 2.57 billion, which is a 10.94% increase year-on-year [11] - The company has successfully launched its 500,000th five-in-one electric drive shell, enhancing its production capacity for products over 3000T [11] - The company is expected to achieve net profits of CNY 12.63 billion, 15.22 billion, and 17.99 billion from 2025 to 2027, with corresponding P/E ratios of 13.0, 10.8, and 9.1 [11] Market Trends - The report notes a significant increase in the demand for AI and robotics, with companies in these sectors expected to see a recovery in their stock prices following recent adjustments [10] - The report emphasizes the importance of domestic companies enhancing their R&D capabilities through acquisitions and talent acquisition to catch up with foreign competitors in the photomask industry [3] - The report also highlights the increasing importance of the AI industry, with Meta's Q1 2025 revenue reaching USD 42.3 billion, a 16% year-on-year increase, and a significant rise in AI-related advertising effectiveness [20]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][12]. Core Insights - The company reported impressive performance with a revenue of RMB 2.241 billion in 2024, representing a year-on-year increase of 155.6%, while the net profit attributable to the parent company was a loss of RMB 401 million, but this still marked a 94.59% improvement year-on-year [5][12]. - The company is focusing on building a "product ecosystem" and aims for global development over the next decade, with a strong emphasis on user needs and product innovation [10][12]. Company Overview - The latest closing price is HKD 145.00, with a total market capitalization of HKD 36.141 billion. The company has a total share capital of 249 million shares and an asset-liability ratio of 199.66% [4][5]. - The company has established partnerships with 50 globally recognized IPs and has a diverse product portfolio with over 600 SKUs [6][7]. Financial Performance - In 2024, the company achieved a revenue of RMB 2.241 billion, with a significant focus on character-building toys, which generated RMB 2.201 billion, accounting for 98.2% of total revenue [7][9]. - The company’s four major IPs, including Ultraman and Transformers, contributed significantly to revenue, with Ultraman alone generating RMB 1.096 billion, representing 48.9% of total revenue [7][9]. Sales Channels and Market Expansion - The majority of revenue growth came from offline distributors, which accounted for RMB 2.063 billion in sales, a year-on-year increase of 181.54% [9][11]. - The company is experiencing rapid growth in overseas markets, with a revenue increase of 518.16% year-on-year, indicating substantial growth potential [9][11]. Future Growth Prospects - The company plans to expand its product offerings to cater to adult consumers and women, aiming to capture a broader market segment [11]. - The company is also focusing on deepening its market penetration in lower-tier cities and enhancing its overseas operations, with expectations of significant growth in international markets [11][12]. - Revenue projections for 2025-2027 are estimated at RMB 4 billion, RMB 6 billion, and RMB 7.765 billion, with corresponding net profits of RMB 946 million, RMB 1.551 billion, and RMB 2.180 billion [12][14].

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Insights - The company is set to be included in the Hang Seng Index, effective June 9, 2025, which is expected to enhance liquidity and increase capital participation [1] - The BFC Creative Competition has expanded to nearly 120 cities across China, with around 8,000 events held, indicating strong community engagement and brand interaction [2] - The company plans to host approximately 20,000 BFC Creative Competitions in 2025, with a tiered approach to events in major and smaller cities [2] - The introduction of new products based on popular IPs such as Naruto and Ultraman is expected to drive consumer demand and enhance brand loyalty [3] - Revenue forecasts for 2025-2027 are projected at 3.8 billion RMB, 5.3 billion RMB, and 7 billion RMB respectively, with net profits of 960 million RMB, 1.48 billion RMB, and 2.08 billion RMB [4] Summary by Sections Company Inclusion in Index - The company will be added to the Hang Seng Index, which is anticipated to improve liquidity and trading sentiment in the toy sector [1] BFC Creative Competition - The BFC Creative Competition has gained significant traction, with a notable increase in participant engagement and the number of events planned for the future [2] Product Development - Continuous introduction of new products leveraging popular IPs is expected to enhance market presence and consumer interaction [3] Financial Projections - The report maintains revenue and profit forecasts for the upcoming years, indicating a positive growth trajectory for the company [4]

Group 1 - The Hang Seng Composite Index will include companies Bruker (00325.HK), Gu Ming (01364.HK), and Mixue Ice City (02097.HK) [1]

Market Overview - The market is experiencing fluctuations, with Hong Kong stocks closing down 0.79% amid a trade war easing [1] - The Middle East is a focal point for capital, with significant investment commitments from Saudi Arabia and Qatar, including a $600 billion investment from Saudi Arabia and a $1.2 trillion economic exchange agreement with Qatar [1] - There is skepticism regarding the actual economic capacity of Gulf countries to fulfill these commitments, given their GDP figures [1] Technology Sector - The U.S. Department of Commerce has stated that using Huawei's Ascend chips globally violates export controls, indicating ongoing tensions in the tech sector [2] - China's economic indicators show a decline in short-term loans and a decrease in both short-term and long-term household loans, suggesting reduced consumer spending [2] - The overall tech sector, including companies like SMIC and Hua Hong, is expected to face pressure due to these geopolitical tensions [2] IPO Market - The IPO market in Hong Kong is under pressure, with CATL's public offering attracting over $50 billion in institutional orders, indicating strong demand [3] - There are multiple companies, including Chinese enterprises, applying for IPOs in Hong Kong, reflecting ongoing interest in the market despite broader economic challenges [3] Shipping and Port Sector - The shipping and port sectors are seeing strength, with companies like China Merchants Port announcing new leasing agreements to enhance financing [4] - China Merchants Port's stock rose nearly 4%, alongside gains in other shipping companies, indicating positive market sentiment in this sector [4] Tencent Holdings - Tencent reported better-than-expected Q1 results, with revenue of 180.22 billion RMB, a 13% year-on-year increase, and a net profit of 47.82 billion RMB, up 14% [5] - The company is adjusting its organizational structure to enhance its e-commerce capabilities, which aligns with its strategic goals [5] Urban Development - The Chinese government has issued guidelines to promote urban renewal, focusing on sustainable development and infrastructure improvement [6] - Key companies in this sector include Vanke, Yuexiu Property, and China Resources Land, which are expected to benefit from these initiatives [6] Company Spotlight: Blokko - Blokko is experiencing significant growth, with projected revenue of 2.241 billion RMB in 2024, a 155.6% increase, driven by its successful transition into the building block toy market [7] - The company has a diverse IP portfolio, including partnerships with major franchises like Ultraman, contributing to its revenue growth [7][8] - Blokko's distribution strategy includes a strong presence in first and second-tier cities, with plans to expand its product offerings further [8]