Core Insights - The sequel "Zootopia 2" has successfully leveraged the strong user base of the original film, achieving significant box office success and commercial value, with a total box office of 31.22 billion yuan in just 15 days after release [1] - The IP has generated a cross-industry consumption synergy through brand collaborations, with over 70 brands participating in co-branding efforts during the film's release, covering 18 categories [2] - Disney's systematic pre-release strategy has significantly boosted market interest, with the first trailer achieving nearly 200 million views within 24 hours and related topics generating over 2.6 billion views on Weibo [2] Box Office Performance - "Zootopia 2" became the first imported animated film to surpass 200 million yuan in pre-sales, indicating strong market demand [1] - The film's box office performance reflects the ongoing appeal of the IP to consumers, with a total box office of 31.22 billion yuan in China by December 10, 2025 [1] Brand Collaborations - The IP has facilitated significant brand collaborations, with over 70 brands engaging in co-branding, leading to a matrix-style commercial layout [2] - Notable collaborations include jewelry brands like Chow Tai Fook and Lao Feng Xiang, which have successfully reached younger consumers through co-branded products [3] - In the apparel sector, brands like Bosideng and Uniqlo have launched themed clothing lines that resonate with the film's audience, achieving substantial sales [4] Jewelry and Apparel Impact - The collaboration between the Z generation's emotional connection to the IP and the intrinsic value of gold jewelry has led to a notable increase in sales and customer demographics for brands like Lao Feng Xiang and Chow Tai Fook [3] - The apparel sector has seen effective conversion of traffic to sales through targeted IP collaborations, with brands launching products that appeal to family audiences [4] Footwear and Lifestyle Products - Footwear brands like Crocs and Li Ning have launched co-branded products that align with the film's themes, enhancing consumer engagement and sales [5][6] - Lifestyle brands such as Miniso and Luckin Coffee have also introduced co-branded products, contributing to large-scale sales [8] IP Operational Strategy - Disney's successful implementation of a "content-consumption-experience" operational model has driven the explosive growth of IP co-branding consumption [9] - The focus on emotional resonance and immersive experiences has strengthened the connection between IP characters and contemporary audiences, enhancing brand value [9] Long-term Commercial Value - The evolution of the Zootopia IP from 2016 to 2025 illustrates the transformation of emotional value into commercial value, with the IP becoming a core element of the industry chain [10] - The role of IP derivative companies is to expand the consumption scenarios and lifecycle of film IPs, integrating characters into daily life through various product categories [10]

Core Viewpoint - Apple CEO Tim Cook's visit to Shanghai for the 10th anniversary of Pop Mart's THE MONSTERS exhibition highlights the growing influence and recognition of Pop Mart in the consumer market, particularly with its LABUBU character [1][5][7]. Company Overview - Pop Mart, a leading player in the trendy toy market, has seen its market capitalization drop to approximately HKD 350 billion after a recent stock price correction, yet it remains one of the most remarkable consumer companies of the year [3][9]. - The company went public in Hong Kong in 2020 and has experienced significant fluctuations in its stock price, including a notable low of HKD 9.4 [7]. Financial Performance - In August 2023, Pop Mart reported its best performance since inception, with revenue for the first half of 2025 reaching RMB 13.88 billion, a year-on-year increase of 204.4%, and a net profit of RMB 4.574 billion, up 396.5% [7]. - The LABUBU character, part of the THE MONSTERS series, contributed approximately RMB 4.814 billion to the total revenue, increasing its share from 13.7% in 2024 to 34.7% in 2025 [7]. Market Trends - Following the surge in popularity of LABUBU, Pop Mart's stock price soared to around HKD 340, with a market cap exceeding HKD 440 billion [7]. - However, the stock has since experienced a decline, dropping to approximately HKD 265, resulting in a loss of nearly HKD 100 billion in market value over two months [9][10]. Cultural Impact - The collaboration between Pop Mart and artist Kasing Lung, creator of LABUBU, has led to a significant cultural phenomenon, with the character gaining international attention, particularly after a social media post by BLACKPINK member Lisa [5][8].

Core Insights - The article highlights the significant presence of Tim Cook, CEO of Apple, at the 10th anniversary exhibition of Pop Mart in Shanghai, indicating the growing interest of major global brands in the Chinese consumer market [2][5][8]. Company Overview - Pop Mart, a leading player in the trendy toy market, has seen its market capitalization drop to approximately 350 billion HKD after a recent stock price correction, yet it remains one of the most remarkable consumer companies of the year [5][15]. - The company has experienced a remarkable turnaround in 2024, with a substantial increase in revenue driven by the popularity of its LABUBU character and expansion into Southeast Asia [7][14]. Financial Performance - In the first half of 2025, Pop Mart reported a record revenue of 13.88 billion CNY, a year-on-year increase of 204.4%, with a net profit of 4.574 billion CNY, up 396.5% [14]. - LABUBU, as a key intellectual property (IP) for Pop Mart, contributed approximately 4.814 billion CNY to the total revenue, representing a significant increase in its share of total revenue from 13.7% in the same period of 2024 to 34.7% in 2025 [14][15]. Market Trends - The article notes a notable moment when BLACKPINK member Lisa posted with LABUBU, leading to a surge in interest and making Pop Mart's app the top shopping app on the US App Store [8]. - Despite the recent stock price decline of over 25% from its peak, analysts suggest that this may not indicate a decline in IP popularity but rather a result of rapid production expansion [15][18].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance exceeded expectations, with a strong growth trajectory driven by high-quality IP and robust domestic and international sales [2][3] - The company reported a significant increase in revenue and net profit, with a projected revenue of 30,480 million RMB in 2025, representing a year-on-year growth of 133.78% [1][9] - The core IP matrix has shown explosive growth, with five IPs generating over 1 billion RMB in revenue, particularly "The Monsters" which achieved 48.14 billion RMB, a year-on-year increase of 668% [9][10] Summary by Sections Domestic Performance - In the first half of 2025, domestic revenue reached 82.83 billion RMB, a year-on-year increase of 135%, with both offline and online channels achieving triple-digit growth [3] - Offline retail store revenue was 44.06 billion RMB, up 120% year-on-year, driven by store optimization and upgrades [3] - Online sales also surged, with revenue from box machines reaching 11.25 billion RMB, a year-on-year increase of 182% [3] International Expansion - The company has expanded its overseas stores to 128, with a net increase of 28 stores since the beginning of the year, leading to a 440% year-on-year increase in overseas revenue to 55.93 billion RMB [4][10] - The Americas saw particularly strong growth, with revenue of 22.65 billion RMB, a year-on-year increase of 1142% [4] Financial Projections - The company has adjusted its net profit forecasts for 2025-2027, increasing the estimates to 10,688 million RMB for 2025, 15,146 million RMB for 2026, and 18,888 million RMB for 2027 [10][11] - The projected P/E ratios for the upcoming years are approximately 37 for 2025, 26 for 2026, and 21 for 2027 [10][11] Product and IP Development - The plush product category has become the largest revenue contributor, with sales of 61.39 billion RMB in the first half of 2025, a year-on-year increase of 1276% [9][10] - The company is focusing on expanding its IP portfolio, with new IPs like "Crybaby" and "Star People" gaining significant traction [9][10]

Core Viewpoint - The recent decline in the popularity of the IP Labubu is viewed as a normal fluctuation in the lifecycle of a successful IP, rather than a sign of diminishing popularity [1][2][10]. Group 1: Market Performance - Labubu's Google global search index has decreased by 5% from its peak, raising concerns about the sustainability of its growth [1]. - Despite a strong half-year performance forecast, Bubble Mart's stock has fallen by 7% since July 15, while the Hang Seng Index has risen by 3% [1]. - The company's sales increased over 200% and net profit over 350% in the first half of the year, but only met the lower expectations of some buyers [1]. Group 2: Search Index Analysis - Morgan Stanley analysts argue that a decline in search index does not necessarily correlate with a drop in sales, as established brands may see consumers directly visiting shopping platforms [2][10]. - Even after the decline, Labubu's search index remains significantly higher than competitors, being 13 times that of KAWS and 3 times that of Doraemon [6]. Group 3: Historical Context - Historical data supports the notion that a decrease in search index does not equate to a decline in sales. For instance, Hello Kitty's search index fell from 55 to 37, yet its parent company Sanrio maintained positive sales growth [11]. - The critical threshold for sales decline typically occurs when the search index drops below a certain level, as seen in the Hello Kitty case [12]. Group 4: Supply Chain and Growth Catalysts - A supply chain shortage has been reported due to many IP brands moving production out of China, affecting the availability of Labubu and other popular products [13]. - Morgan Stanley identifies six potential catalysts for future growth, including upcoming financial reports, product launches, and collaborations, which could sustain Bubble Mart's growth narrative [14][18].

Core Insights - The article highlights the significant impact of the hit series "Cang Hai Chuan" on the overall market, achieving a market share of 40.1% and attracting over 60 brand collaborations [1][10] - The analysis of Q2 shows an increase in content diversity and brand investment, with notable performances from various genres including suspense and historical dramas [1][5] Group 1: April Highlights - In April, the top two series for brand collaboration were both from Youku, with "Manhao de Rensheng" leading with 160 ads and 28 brand partners, followed by "Yi Mei" with 71 ads [2][3] - The top three series in terms of advertising numbers included "Manhao de Rensheng," "Yi Mei," and "Wuyou Du," showcasing a strong brand interest in diverse content [3][5] Group 2: May Developments - May saw the entry of several major dramas, with "Cang Hai Chuan" achieving the highest viewership at 4.49 billion, followed closely by "Zhe Yao" and "Huai Shui Zhu Ting" [7][8] - "Cang Hai Chuan" set a record with 218 total ads and 48 brand partners, while "Zhe Yao" recorded 167 ads, indicating a robust advertising market [9][10] Group 3: Brand Collaboration Trends - The success of "Cang Hai Chuan" is attributed to its star power and innovative advertising formats, which included over 10 new ad types, enhancing viewer engagement [10][12] - The series demonstrated a shift in brand collaboration, attracting a wide range of industries, including beauty and fast-moving consumer goods, breaking traditional genre boundaries [12][14] Group 4: Future Outlook - The article anticipates continued competition among major platforms, with upcoming dramas expected to further influence brand marketing strategies [16] - The trend towards high-quality, innovative content is expected to persist, with brands increasingly aligning with popular series to maximize their marketing impact [16]

Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected increase of 5% to 15% relative to the CSI 300 index over the next six months [2][14]. Core Views - The company experienced a significant revenue increase in Q1 2025, with a 23.23% year-on-year growth, and a net profit increase of 154.72% [6][9]. - The overall film market in 2024 was weak, with a 22% decline in box office revenue and attendance, impacting the company's screening business [9]. - The company holds a leading market share of 15.2%, maintaining its position as the top player in the industry for 16 consecutive years [9]. - The company is focusing on upgrading its non-ticket revenue strategies, which has led to an increase in the proportion and gross margin of non-ticket income [9]. - The content business remains stable, with notable growth in the gaming sector, where revenue increased by 54.71% year-on-year [9][10]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 12.36 billion yuan, a decrease of 15.44% year-on-year, and a net loss of 940 million yuan, a decline of 203.05% [6]. - For Q1 2025, the company achieved a revenue of 4.709 billion yuan, up 23.23% year-on-year, and a net profit of 830 million yuan, up 154.72% [6]. Business Segments - The screening business saw a revenue of 6.687 billion yuan in 2024, down 20.82% year-on-year, with a gross margin decrease of 8.85% [9]. - Advertising revenue was 1.278 billion yuan, down 3.46%, but the gross margin improved by 12.48 percentage points [9]. - The company’s film production and distribution revenue increased by 85.49% to 619 million yuan, while TV series revenue decreased by 54.01% to 341 million yuan [9]. Market Outlook - The domestic film market showed a strong performance in early 2025, with box office and attendance growth exceeding 40% year-on-year [10]. - The company is expected to benefit from upcoming summer releases and has a robust pipeline of films and series scheduled for 2025 [11]. Valuation Metrics - Projected EPS for 2025-2027 is 0.52 yuan, 0.66 yuan, and 0.78 yuan respectively, with corresponding PE ratios of 21.39, 17.07, and 14.37 [11].