Ge Long Hui·2025-11-19 21:23Company Overview - The company participated in the CICC annual strategy meeting, discussing overseas markets, IP sustainability, and supply chain rhythm, reaffirming confidence in its business model and long-term growth potential, highlighting bottom-fishing opportunities [1] Market Growth - The North American market has shown consistent performance since 2025, with the company establishing a comprehensive channel system. Q3 pre-sales have increased online sales, while offline channels remain crucial for IP expression and experience delivery. Supply chain and logistics adjustments present challenges, but seasonal performance is expected to improve with more quality stores and local experience accumulation [1] IP Commercialization - The decline in secondary market prices does not necessarily indicate a peak in IP popularity. The price fluctuations are influenced by the release schedule, with current supply levels exceeding secondary market transaction volumes. The increased availability of popular products enhances consumer experience and indicates broader customer reach for core IPs, supporting future growth [2] IP Lifecycle Management - The recent drop in search interest for popular IPs raises concerns about their lifecycle. However, the lifecycle is driven by product and content, and evaluating it solely on search trends is overly simplistic. Continuous product releases, innovation, and collaborations provide ample growth opportunities, with the company's operational capabilities expected to drive further scale. Secondary IPs are also showing rapid growth, confirming the company's platform advantages [2] Profit Forecast and Valuation - The company has adjusted its net profit forecasts for 2025 and 2026 upwards by 3.3% and 4.6% to 137 billion and 177 billion respectively. The current stock price corresponds to 20x and 15x adjusted P/E for 2025 and 2026. The company maintains an outperform rating and a target price of 370 HKD, implying a 71% upside potential based on 33x and 26x adjusted P/E for 2025 and 2026 [3]