Core Viewpoint - The announcement by Superstar Legend (06683.HK) regarding its acquisition of up to 7% of the issued share capital of the South Korean talent agency Galaxy has significantly boosted market enthusiasm, leading to a notable increase in the company's stock price and market capitalization [1][2]. Company Summary - Superstar Legend has invested $8 million to acquire a 16% stake in the industry fund that holds the shares of Galaxy, with the first delivery of shares successfully completed [1]. - Galaxy, established in August 2019, is a comprehensive entertainment company in South Korea, involved in traditional talent management as well as innovative fields like metaverse virtual image creation and content production for variety shows [1][2]. - The strategic partnership with Galaxy is expected to bring various synergistic benefits, including collaboration on exhibitions, concerts, and the development of artist IP and related products [2]. Financial Performance - For the first half of the fiscal year ending June 30, 2025, Superstar Legend reported revenue of 355 million yuan, a 33% increase from 267 million yuan in the same period last year, although net profit fell by 58.9% to 10.27 million yuan [2]. - Revenue from IP creation and operation decreased by 8.9% to 144 million yuan compared to the previous year [2]. Market Reaction - The stock price of Superstar Legend surged by 14.3% following the announcement, with a peak increase of 12.7% during trading, bringing the share price to 9.85 HKD and the market capitalization to 8.8 billion HKD [1][4]. - Previous market reactions to the company's announcements, such as Jay Chou's entry into Douyin and the launch of the "Superstar Dog," have also resulted in significant stock price increases, indicating strong market sensitivity to the company's developments [3]. Industry Context - The Chinese IP industry has reached a scale of hundreds of billions, with product licensing being a major model, capable of leveraging over 25 times the gross merchandise value (GMV) from unit licensing fees [3]. - Compared to developed countries like the US and Japan, China's IP licensing industry still has considerable growth potential, particularly for celebrity IPs like those associated with Jay Chou, which have strong commercial viability and fan bases [3].