Investment Rating - The report maintains a "stronger than the market" rating for the industry [6][12]. Core Insights - The report highlights TOP TOY as the largest and fastest-growing collectible toy brand in China, achieving a revenue of RMB 1.9 billion in 2024, with a year-on-year growth rate of 30.7% and a gross margin of 32.7% [3][13]. - The Chinese collectible toy market is experiencing rapid growth, with a projected market size increase from RMB 207 billion in 2019 to RMB 587 billion in 2024, representing a compound annual growth rate (CAGR) of 23.2% [4][45]. - The report emphasizes the importance of a diversified product matrix and a multi-layered IP ecosystem, which includes 17 proprietary IPs, 43 licensed IPs, and over 600 third-party IPs [3][13]. Summary by Sections Company Overview - TOP TOY is recognized as a leading player in the collectible toy industry, with rapid revenue growth and a strong market presence [2][16]. - The company has established a comprehensive IP matrix and a robust sales network, including 299 offline stores and extensive online sales channels [6][65]. Market Overview - The collectible toy market in China is projected to reach RMB 2,133 billion by 2030, with a CAGR of 20.9% from 2025 to 2029 [4][45]. - The market is characterized by a low concentration of competitors, with TOP TOY holding a market share of 2.2% in 2024 [58][59]. Product Experience and Operations - TOP TOY focuses on three main product categories: figurines, 3D assembly models, and plush toys, with figurines accounting for 69% of revenue in 2024 [70][74]. - The company has a strong supply chain that supports rapid product iteration and high-quality standards, enhancing consumer trust and brand loyalty [54][64]. Investment Recommendations - The report suggests monitoring companies with strong IP operations, such as Bubble Mart and DaMai Entertainment, and emphasizes the potential for growth in the collectible toy market due to high demand and a fragmented competitive landscape [6][58].