HTSC·2025-10-22 07:09Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 410.00, up from a previous target of HKD 396.00 [2][10]. Core Insights - The company reported a significant revenue growth of 245-250% year-on-year for Q3, accelerating from 204% in H1, driven by strong demand for plush toys and successful new IP launches [6][10]. - The company is expected to continue its robust growth into Q4, supported by a rich pipeline of new products and a diversified strategy for IP and regional expansion [9][10]. Financial Performance - Revenue projections for the upcoming years show substantial growth, with expected revenues of RMB 39,883 million in 2025, representing a 205.90% increase from 2024 [5]. - Adjusted net profit is forecasted to reach RMB 13,529 million in 2025, reflecting a 297.55% increase from 2024 [5]. Market Dynamics - The company is experiencing strong sales across various channels, with online sales expected to grow by 300-305% in Q3, indicating a significant increase in online penetration [7]. - The company is expanding its presence in North America and the Asia-Pacific region, with revenue growth rates of 170-175% and 1265-1270% respectively for Q3 [8]. Product and IP Strategy - The successful launch of new plush products, such as Labubu and SP plush series, has broadened the company's market appeal and driven sales growth [7]. - The company is focusing on creating a sustainable ecosystem for its IPs, with plans for collaborations with top global brands and diversification into other business areas like desserts and accessories [9].