Xin Lang Cai Jing·2025-05-27 16:52Core Viewpoint - The company Lezi Tiancheng is seeking to go public on the Hong Kong Stock Exchange, with its main brand 52TOYS being a leading player in the Chinese IP toy market, which is rapidly growing due to the "Guzi Economy" trend [1][3]. Market Position - According to the prospectus, 52TOYS is the third-largest IP toy company in China by GMV, with a projected GMV of 0.93 billion RMB for 2024, which is significantly lower than the leading companies, Pop Mart and Blok, whose GMVs are 8.72 billion RMB and 4.30 billion RMB respectively [2][3]. - The overall Chinese IP toy market is expected to grow from 48.6 billion RMB in 2020 to 75.6 billion RMB in 2024, with 52TOYS currently holding a market share of 1.2% [3][4]. Financial Performance - 52TOYS's revenue from 2022 to 2024 is projected to be 463 million RMB, 482 million RMB, and 630 million RMB respectively, which is less than 5% of Pop Mart's revenue in 2024 [3][4]. - The adjusted net profit for 52TOYS is expected to be -57 million RMB in 2022, 19 million RMB in 2023, and 32 million RMB in 2024, indicating a struggle to achieve significant profitability [4][5]. Profitability and Cost Structure - The gross margin for 52TOYS is relatively low, at 28.9% in 2022, 40.5% in 2023, and 39.9% in 2024, compared to competitors like Pop Mart and Blok, which have gross margins of 66.8% and 52.6% respectively [5][6]. - A significant portion of 52TOYS's revenue comes from licensed IP, which accounted for 50.2% in 2022 and is expected to rise to 64.5% by 2024, leading to high IP licensing costs [5][6]. Investment and Future Prospects - Despite its current performance, the company has attracted significant investment, including a recent 144 million RMB investment from Wanda Film and China Ruyi, indicating confidence in its future growth potential [7][9]. - The company plans to expand its self-operated stores in China and overseas, aiming to reduce reliance on distributors and improve profit margins [14][15]. International Expansion - 52TOYS has been expanding its international presence, with overseas revenue growing from 35.4 million RMB in 2022 to 147.4 million RMB in 2024, representing a growth rate of 149.15% year-on-year [15][16]. - The company aims to leverage partnerships with major film and gaming IPs to enhance its product offerings and market reach [12][14].