Investment Rating - The report assigns a "Buy" rating for the company, Guangbo Co., Ltd. (002103), marking its first coverage [1]. Core Insights - Guangbo Co., Ltd. is accelerating its transformation into the IP cultural and creative sector, leveraging its traditional stationery manufacturing advantages. The company is focusing on the development of IP derivatives, which are expected to drive revenue and profit recovery in 2023-2024 [8][9]. - The report highlights the rise of "new consumption" driven by demographic changes, particularly among the younger Generation Z, which is expected to create significant consumption growth [9][34]. - The domestic IP derivative market is projected to reach a GMV of 174.2 billion yuan in 2024, with a year-on-year growth of 30.2%, indicating a robust demand for IP products [8][40]. Company Overview - Guangbo Co., Ltd. has a strong foundation in traditional stationery manufacturing, which it is leveraging to expand into the IP cultural and creative business. The company has seen a notable recovery in revenue and profit since refocusing on its core business [19][21]. - The company’s IP cultural business is expected to contribute 187 million yuan in revenue in 2024, accounting for 7% of total revenue, with a significant increase in profitability due to high gross margins [8][25]. - The company has established a diverse range of sub-brands and has successfully collaborated with well-known IPs, enhancing its ability to acquire IP licenses and expand its product offerings [8][10]. Financial Data and Profit Forecast - The total revenue for Guangbo Co., Ltd. is projected to be 2.778 billion yuan in 2024, with a year-on-year growth rate of 3.3%. The net profit attributable to the parent company is expected to be 152 million yuan, reflecting a decline of 10.1% due to high base effects from previous years [7][21]. - The report anticipates a significant increase in the company's IP cultural business, with revenue growth rates projected at 100% for 2025, 50% for 2026, and 30% for 2027 [11][10]. - The gross margin for the IP cultural business is expected to reach 45% by 2027, indicating a strong upward trend in profitability [11][10]. Industry Analysis - The IP derivative market is characterized by a diverse range of products and a growing consumer base, particularly among younger demographics who are increasingly engaged in emotional consumption [40][49]. - The report notes that the domestic IP industry is maturing, with a concentration of high-quality content and a shift towards online retail channels, which are expected to sustain growth in the IP derivative market [9][34]. - The competitive landscape for IP derivatives remains fragmented, providing opportunities for companies like Guangbo to leverage their supply chain and design capabilities to capture market share [12][49].