COL(300364) Xinda Securities·2024-12-02 08:35Investment Rating - The investment rating for the company is "Buy" based on its strong performance in the overseas short drama market and the development of IP derivatives [2]. Core Viewpoints - The report highlights the successful launch of the short drama application UniReel by the company's Japanese subsidiary, COL JAPAN, which enhances the company's competitive edge in the overseas short drama market [2]. - The company has established a matrix development in overseas short dramas, with significant revenue growth reported: $63.43 million in Q3 2024, a 52% quarter-on-quarter increase and a 327% year-on-year increase [2]. - The company is actively developing various IP derivatives, with a focus on the "National Valley," "Japanese Valley," and "American Valley" product matrices, which are expected to further enhance profitability [2]. Summary by Relevant Sections Overseas Short Drama Development - The company has launched multiple successful short drama applications, including ReelShort and Sereal+, with significant revenue and download growth reported [2]. - The launch of UniReel in Japan is expected to strengthen the company's market position in overseas short dramas [2]. Domestic Short Drama Initiatives - The company established a boutique short drama department in July 2024 and has released over 450 short drama works on various platforms [2]. - The short dramas are characterized by short episode lengths, catering to the growing demand for quick consumption content [2]. IP Derivative Development - The company has launched a brand focused on IP derivative development, "Dimension Exploration," and has secured exclusive rights to several popular IPs [2]. - The sales of IP-related products, particularly those related to the self-owned IP "Little Black," are performing well, indicating a strong market presence [2]. Investment Recommendations - The report suggests that the company's dual focus on "Short Dramas + IP" will continue to drive growth and recommends ongoing attention to the company's strategic developments [2].