Core Insights - The focus of the "Double 11" shopping festival has unexpectedly shifted to collectible cards, particularly the TOPPS X THE MONSTERS/LABUBU series, which sold out quickly despite a high price point and purchase limits [1][5] - The collectible card market in China is experiencing significant growth, with major players like Pokémon and various entertainment giants entering the space, leading to increased competition and market dynamics [4][8] Market Dynamics - The LABUBU card's popularity reflects a broader trend in the collectible card market, which is heating up with various companies competing for market share [4][6] - The collectible card market is projected to reach $7.267 billion by 2025 and $15.433 billion by 2032, with a compound annual growth rate of 11.36% [6] - China is becoming the largest market for collectible cards, with a projected market size of 263 billion yuan in 2024, significantly lower per capita spending compared to Japan and the U.S., indicating potential for growth [6][8] Company Performance - Bubble Mart reported a projected revenue increase of 245%-250% year-on-year for Q3 2025, with domestic revenue up 185%-190% and overseas revenue up 365%-370% [4] - The LABUBU card's appeal is attributed to its limited availability and artistic value, including signed cards and unique designs, which resonate with collectors [5][11] Competitive Landscape - The card market is becoming increasingly competitive, with over 2,000 card-related companies in China, and major players like 卡游 (Kawoo) and others vying for dominance [7][8] - The entry of entertainment companies like iQIYI and阅文 (Yuewen) into the card market is driving innovation and cross-industry collaboration [8][9] Consumer Behavior - The current consumer base for collectible cards in China is primarily younger, with a shift towards a more balanced age demographic as the market matures [11] - The transition from a hobbyist market to an investment-oriented market is hindered by a lack of infrastructure, including rating agencies and standardized quality control [11] Future Outlook - Analysts suggest that the future of the card market in China may lean towards trading card games (TCG) that offer gameplay and competitive events, which could sustain consumer interest longer than traditional collectible cards [7][11] - The market is expected to evolve from a "toy economy" to an "interest asset" economy as adult players become the main consumer group [11]

Company Overview - Kaizhile International (02122) experienced a significant stock price increase, soaring 160% yesterday and nearly 30% in early trading today, with a cumulative increase of over 350% this month [1] - As of the latest update, the stock is up 8.2%, trading at HKD 0.33, with a transaction volume of HKD 29.2543 million [1] Strategic Initiatives - The company announced a strategic move into the trading card game (TCG) market, starting with a partnership with the globally recognized IP Pokémon for operational services [1] - On September 10, the first official Pokémon card dojo opened in Beijing's Huiju Shopping Center, marking a significant step in the company's TCG strategy [1] - Kaizhile plans to seek collaborations with more international and domestic popular IPs and card manufacturers in the future [1] Industry Insights - The global TCG market has surpassed USD 12 billion in 2024, with the Chinese market experiencing growth rates exceeding 40% for three consecutive years [1] - Card games are becoming increasingly popular among Generation Z consumers due to their strong social attributes, collectible value, and the trend towards esports [1] - The company aims to leverage these market opportunities by collaborating with leading brands to establish a comprehensive business chain that includes offline sales, experiential activities, and event operations [1]

Group 1 - Investment Rating: Outperform the market, maintained [2] - Core Viewpoint: The report highlights the growth potential of the collectible card game industry, with the company positioned as a leader in the market [3][4] Group 2 - Company Overview: The company is a leading player in China's collectible card game sector, focusing on a diverse product portfolio that includes toys, figurines, and stationery [7][9] - Industry Overview: The IP toy market is thriving, with collectible card categories experiencing the fastest growth [21][22] - Financial Performance: The company's revenue growth is driven by top IP products, with significant increases in sales figures [8][10] Group 3 - Business Model: The company employs an integrated business model that leverages product experience, interactive operations, and production capabilities [13][55] - Product Portfolio: The core product is collectible cards, complemented by figurines, other toys, and stationery, showcasing a diverse product range [54][80] - IP Matrix: The company has established a diverse IP matrix, enhancing its overall IP operation capabilities [83]