Investment Rating - The investment rating for the industry is "Outperform the Market" (maintained) [1] Core Insights - The report highlights that LEGO Group achieved record highs in revenue and operating profit for 2024, with revenue increasing by 13% to 74.3 billion Danish Kroner (approximately 78.6 billion RMB) and operating profit rising by 10% to 18.7 billion Danish Kroner (approximately 19.7 billion RMB) [2][4] - The growth is attributed to product innovation, with 840 product series launched in 2024, of which 46% were new products, and a continued global expansion strategy [2][4] - The report emphasizes the importance of cultural adaptability and ecological operation depth for companies in the industry, suggesting that those who can quickly respond to consumer demand changes and integrate locally will thrive [3][10] Summary by Sections Revenue and Profit Growth - LEGO's revenue and operating profit reached historical highs in 2024, with a compound annual growth rate (CAGR) of 14.22% for revenue and 8.61% for net profit from 2020 to 2024 [4][6] Product Innovation - Key product innovations include the LEGO Plant series, which has gained popularity as a gift option, and the launch of physical sets based on the popular game LEGO Fortnite, which attracted over 87 million players since its release [5][6] Global Supply Chain Expansion - The report notes significant expansions in production capacity, including a 60% increase in Hungary and a 27% increase in China, alongside the establishment of regional distribution centers to enhance supply chain flexibility [6][7] Retail Experience Innovation - In 2024, LEGO opened 74 new brand stores and hosted over 1,400 free creative workshops across 15 countries, while also closing 76 underperforming stores, resulting in a total of 1,069 stores by year-end [7]

Investment Rating - The investment rating for the industry is "Outperform the Market" (maintained) [1] Core Insights - The report highlights that LEGO Group achieved record highs in revenue and operating profit for 2024, with revenue increasing by 13% to 74.3 billion Danish Kroner (approximately 78.6 billion RMB) and operating profit rising by 10% to 18.7 billion Danish Kroner (approximately 19.7 billion RMB) [2][4] - The growth is attributed to product innovation, with 840 product series launched in 2024, of which 46% were new products, and a continued global expansion strategy [2][4] - The report suggests that LEGO's long-term strategy will focus on product innovation and IP collaborations, including upcoming releases such as F1 racing and NIKE-themed sets [2][4] Summary by Sections Product Innovation - LEGO's core IP continues to innovate, integrating self-developed and entertainment IP, such as LEGO Technic and LEGO Star Wars [5] - The LEGO plant series was expanded in 2024, appealing to new builders and gaining popularity as gifts [5] - The company capitalized on the popularity of the game LEGO Fortnite by launching physical sets, attracting over 87 million players since its release [5] Global Supply Chain Expansion - LEGO expanded and upgraded its production capacity, with Hungary's new molding and packaging facility increasing space by 60%, and new modules in Mexico and China adding 4.2 million square meters and 5.1 million square meters of space, respectively [6] - The establishment of regional distribution centers has enhanced supply chain flexibility, with significant revenue growth in key markets: 15.66% in the Americas and 12.76% in Europe, the Middle East, and Africa [6] Retail Experience Innovation - In 2024, LEGO opened 74 new brand stores and hosted over 1,400 free creative workshops across 15 countries to enhance shopping experiences [7] - The company also closed 76 underperforming stores, resulting in a total of 1,069 stores by the end of the year, a slight decrease from 2023 [7] Investment Recommendations - The report recommends focusing on leading companies in the domestic IP toy industry, such as Pop Mart, Blokus, and Miniso, which are expected to benefit from product innovation and global expansion opportunities [10]