Core Insights - The underground idol (地偶) market in Japan is experiencing a significant growth phase, with domestic capital showing interest in entering the market [1] - The domestic underground idol market has seen a substantial increase, with the number of groups more than doubling since its inception in 2023 [1][2] - The male underground idol segment is rapidly expanding, with a notable rise in participation from various demographics, including students and professionals [2][8] Market Overview - The current market size for underground idols in China is approximately 2 billion, with a balanced distribution between male and female idols [1] - The number of female underground idol groups exploded in 2023, with 101 new groups formed, followed by 188 in 2024, and an additional 113 by August of the current year [2] - Male underground idols are a newer phenomenon, with the first group emerging in 2023, and the total number of male groups reaching 60 [2] Competitive Landscape - The competition in the female underground idol sector is intensifying, with many groups struggling to monetize their efforts due to a fixed fan base [4][5] - The male underground idol market is characterized by a more diverse audience and less rigid stylistic constraints, allowing for a broader range of group concepts [9] - The male idol segment is experiencing a "卷" (intense competition) phase, with many new agencies and groups emerging to capture market share [9][10] Revenue Generation - Both male and female underground idols rely heavily on "特典券" (special tickets) for revenue, which allow fans to interact with idols, as ticket sales typically go to event organizers [10] - The emotional connection with fans is crucial for revenue, with idols needing to provide personalized interactions to maintain and grow their fan base [11][12] - The concept of "恋营" (romantic engagement) is prevalent in male idol groups, allowing them to generate income without necessarily relying on performance skills [13] Industry Trends - The underground idol market is becoming increasingly accessible, with low entry costs allowing many aspiring idols to form groups [15] - There is a growing trend of established entertainment companies entering the underground idol space, viewing it as a potential transitional phase for future mainstream opportunities [17] - The lack of original content in the underground idol scene is a significant challenge, with many groups relying on covers of Japanese songs rather than creating original material [18]

Core Viewpoint - The disbandment of X玖少年团 marks a significant turning point for 哇唧唧哇, as it loses its last idol boy group and top star,肖战, indicating a potential decline in its influence in the idol industry [1][8]. Group 1: History and Development of X玖少年团 - X玖少年团 was formed as a result of the transition from traditional television talent shows to internet-based idol selection, becoming 哇唧唧哇's first boy group [2]. - The group was created after the failure of the initial "X-FIRE" plan, with five trainees, including肖战, being brought together to form the group [2]. - 哇唧唧哇 was established by 龙丹妮 in 2017, marking a shift towards internet media and solidifying the group's status as the "first son" of 哇唧唧哇 [2][4]. Group 2: 哇唧唧哇's Business Model and Success - 哇唧唧哇's initial success was built on the idol economy, with the launch of the talent show "明日之子" in 2017, which became a major IP for the company [4][5]. - The company gained recognition for its ability to produce and operate idol groups through successful talent shows, establishing itself as a key player in the idol market [5]. Group 3: Challenges and Decline - The "倒奶事件" in 2021 led to a halt in idol selection shows, significantly impacting 哇唧唧哇's business model, which relied heavily on idol groups [7]. - Following the disbandment of X玖少年团 in 2025, 哇唧唧哇 no longer has any idol groups, indicating a decline in its market position [8]. - The company has been seeking transformation opportunities since the idol market cooled, attempting to expand its content production beyond idol-centric projects [9][10]. Group 4: Transition to Content Production - 哇唧唧哇 has started to focus on producing content that appeals to a broader audience, such as the successful reality show "毛雪汪" [10]. - The company has collaborated with platforms like 优酷 to create dramas that target general audiences, moving away from solely producing content for its own artists [12]. - Despite some successes, the quality of content produced has faced criticism, and the company needs more successful projects to strengthen its market position [14].

Core Insights - The collaboration between Lehua Entertainment and Wakuku aims to create a "star IP-scarce trendy toys-fan economy" golden loop, potentially leading to a new path for successful product incubation [3][17] - The "Guzi economy" is expected to reach a scale of 168.9 billion yuan in 2024, driven by popular IPs and the rapid expansion of offline "Guzi stores" [5][7] - Lehua Entertainment's stock price has surged by 342.42% over the past month, reflecting investor confidence in its cross-industry trendy toy strategy [8][17] Group 1: Collaboration and Market Strategy - Lehua Entertainment's partnership with Wakuku leverages top-tier artists to enrich the IP pool, enhancing emotional value in product design [3][4] - Wakuku's platform operations utilize advanced technology and community engagement to create a comprehensive sales funnel, leading to rapid sell-outs of limited edition products [3][4] - The collaboration is expected to expand into a "Lehua Trendy Toy Universe," diversifying product offerings and extending product life cycles [4][17] Group 2: Economic Trends and Growth Potential - The "Guzi economy" is anticipated to grow by 40.63% year-on-year, with significant contributions from the idol industry and innovative business models [5][6] - Lehua Entertainment's "Guzi" series, which includes exclusive merchandise linked to its artists, has shown strong sales performance, indicating a successful integration of traditional fan consumption with the new economy [6][7] - The company's focus on high-margin, standardized production of "Guzi" items presents substantial profit growth opportunities [6][7] Group 3: Stock Performance and Investor Sentiment - Lehua Entertainment has actively repurchased shares, with a total expenditure of 18.63 million HKD in May, indicating a strategy to bolster market confidence [10][12] - The concentration of shares is increasing, with institutional holdings rising to 25.32% as of June 11, 2025, suggesting a positive outlook from institutional investors [12][14] - The company's diverse strategies, including the trendy toy market and virtual idols, are expected to provide robust growth momentum in the long term [14][17]