Core Viewpoint - The article discusses the booming market for collectible cards, particularly focusing on the company Suplay and its brand KAKAWOW, which targets adult collectors with high-quality, limited-edition cards featuring popular IPs like Disney and Marvel [6][19]. Group 1: Company Overview - Suplay has submitted its prospectus to the Hong Kong Stock Exchange, indicating its intention to go public and highlighting the growth of the collectible card business in China [8]. - From 2023 to 2024, Suplay's revenue increased from 146 million RMB to 281 million RMB, with the first nine months of 2025 already surpassing the entire revenue of 2024, reaching 283 million RMB [8][31]. - The company has established itself as a leader in the non-battle collectible card market in China, holding a 3.2% market share and surpassing the combined GMV of its second and third competitors [32]. Group 2: Product and Market Dynamics - KAKAWOW's collectible cards are priced between 76 RMB and 6,990 RMB per box, with popular series selling well at around 599 RMB to 699 RMB [16][18]. - The rarity and quality of the cards, along with their association with globally recognized IPs, contribute to their high market value, with some cards selling for over 20,000 RMB on platforms like eBay [5][22]. - The company has successfully tapped into the adult collector market, similar to the trend seen with brands like Pop Mart, by offering high-end designs and limited releases [6][9]. Group 3: Financial Performance - In 2023, KAKAWOW sold 1.56 million cards at an average price of 31 RMB, contributing to Suplay's revenue of 146 million RMB, with collectible items accounting for 32.9% of total revenue [29]. - By the first nine months of 2025, KAKAWOW sold over 4.58 million cards at an average price of 43 RMB, generating 70% of Suplay's revenue during that period [31][32]. - The gross profit margin for KAKAWOW increased from 57.9% in 2023 to 69.5% in the first nine months of 2025, indicating strong profitability [32]. Group 4: Challenges and Market Sentiment - There is growing concern among collectors regarding the rapid depreciation of card values in the secondary market, with some cards selling for significantly less than their original prices [36][38]. - The reliance on popular IPs poses a risk, as the company must continuously secure exclusive licenses to maintain its competitive edge [45][46]. - The potential for market saturation exists, as players express fatigue over the increasing number of card series released, which may dilute the perceived value of the cards [34][36].

Group 1 - Suplay submitted its listing application to the Hong Kong Stock Exchange on January 1, 2026, with CICC and JPMorgan as joint sponsors [1] - The company, founded in 2019, has its flagship brand "Kakawoo" targeting high-end collectible cards for adults, with retail prices ranging from 59.9 to 89.9 yuan per pack [1] - Suplay ranked first in China's collectible non-combat card market based on the total gross merchandise value (GMV) for 2024, according to Frost & Sullivan [1] Group 2 - Revenue for Suplay is projected to grow from 146 million yuan in 2023 to 281 million yuan in 2024, representing a year-on-year increase of 92.5% [1] - By the first three quarters of 2025, the company's revenue reached 283 million yuan, surpassing the total for 2024 [1] - Adjusted net profits for the same periods were 15.97 million yuan, 64.81 million yuan, and 86.42 million yuan respectively [1] Group 3 - Suplay acknowledged a risk of dependency on several licensed IPs, with revenue from proprietary IP products dropping from 40.6% in 2023 to 4.1% in the first three quarters of 2025 [2] - The contribution of the top five licensed IPs to revenue increased from 47.8% to 77.7% during the same period [2] - The largest revenue-generating IP's licensing agreement has expired, and the company is currently negotiating potential collaborations [2] Group 4 - The Chinese pan-entertainment card market is projected to exceed 30 billion yuan in 2025 and is expected to reach 50 billion yuan by 2027 [2]

Core Viewpoint - Suplay, a trendy IP collectibles and consumer goods company, has submitted its prospectus for an IPO on the Hong Kong main board, aiming to raise funds for further growth in the collectible card market, which has shown significant revenue potential and consumer interest [1][2]. Group 1: Company Overview - Suplay was established in September 2019 and has quickly positioned itself in the collectible card market, focusing on high-end products aimed at adult consumers, particularly women [1][9]. - The company has developed notable brands such as Kakawow, which has become a leader in the collectible non-battle card market in China [5][11]. - Suplay's revenue for the first nine months of 2025 reached 2.83 billion RMB, reflecting a strong growth trajectory [9]. Group 2: Financial Performance - Revenue increased from 1.46 billion RMB in 2023 to 2.81 billion RMB in 2024, marking a year-on-year growth of 92.5% [9]. - The net profit surged from 2.9 million RMB in 2023 to 49.1 million RMB in 2024, representing a staggering growth of 1,593.1% [9]. - The company's revenue is primarily derived from consumer products, which accounted for 67.1% and 58.2% of total revenue in 2023 and 2024, respectively [10]. Group 3: Market Position and IP Strategy - Suplay's Kakawow cards are priced significantly higher than entry-level products, with retail prices ranging from 59.9 RMB to 89.9 RMB per pack, targeting adult collectors [6][9]. - The company has a deep partnership with MiHoYo, which holds an 11.86% stake and has provided access to several popular game IPs [2][14]. - Despite its growth, Suplay faces risks due to its heavy reliance on licensed IPs, with only 4.1% of revenue coming from its own IPs [12][17]. Group 4: Competitive Landscape - Suplay's revenue scale is significantly smaller compared to its competitor, Card Game, which reported revenues soaring from 4.131 billion RMB in 2022 to 10.057 billion RMB in 2024 [19]. - The competitive landscape remains uncertain as other companies like Card Game and Hitcard are also pursuing IPOs, making the outcome of the "first card stock" unclear [18][19].

Market Overview - The Hang Seng Index increased by 2.01%, the Hang Seng Tech Index rose by 4.31%, and the Hang Seng China Enterprises Index gained 2.85% during the week from December 29, 2025, to January 2, 2026[4]. - Net selling through the Hong Kong Stock Connect amounted to 3.4 billion CNY, while southbound funds recorded a net purchase of 1,301.5 billion CNY in 2025, equivalent to 174.92% of the total net purchases for 2024[4]. AI Sector Developments - Meta acquired AI startup Manus for over 2 billion USD, which will continue to operate independently[4]. - Baidu's subsidiary Kunlun Chip submitted a confidential listing application to the Hong Kong Stock Exchange on January 2, 2026[6]. - MiniMax launched the MiniMax M2.1 model and went through the listing hearing with the Hong Kong Stock Exchange[4]. Investment Recommendations - For Tencent Holdings, a PE ratio of 18X is projected for 2026, with expectations of accelerated growth in domestic gaming and healthy overseas growth[4]. - Kuaishou is expected to have a PE ratio of 11X for 2026, with stable growth and potential investment opportunities following any short-term volatility[4]. - Alibaba is projected to have a FY27 PE of 16X, with new AI models and hardware developments to watch[4]. Consumer Sector Insights - Suplay submitted its prospectus for listing on the Hong Kong Stock Exchange, aiming to capitalize on its leading position in the collectible card market[6]. - Pop Mart's valuation is at 14X PE for 2026, with potential sales boosts from the holiday season and strong IP performance expected[4]. Risks - Geopolitical risks may impact overseas revenues and competitiveness, potentially affecting stock prices[22]. - Regulatory risks in the internet sector could influence industry and individual stock performance[22].

Core Viewpoint - Suplay Inc. is positioned as a leading player in the collectible non-battle card market in China, with significant growth potential and a strong management team with investment backgrounds [4][5][9]. Company Overview - Founded in 2019, Suplay focuses on integrating globally recognized IPs into its product lines while promoting Chinese culture through selected products [5]. - Suplay's flagship brand "Kaka Wo" holds a pioneering and leadership position in the Chinese collectible card market, being the first to receive comprehensive certification from major global grading institutions [7]. Market Position - As of 2024, Suplay ranks first in the Chinese collectible non-battle card market by GMV, surpassing the combined total of the second and third-ranked competitors, and is the only Chinese brand among the top five globally [9]. - The collectible non-battle card segment is identified as one of the fastest-growing yet least penetrated areas within the broader entertainment merchandise market, with a projected global market size of $12 billion in 2024, expected to grow to $25.7 billion by 2029, reflecting a CAGR of 16.5% [10]. Product Strategy - Suplay's card products are positioned in the high-end segment, focusing on collectible cards priced over 10 yuan, employing a limited release strategy that enhances both artistic quality and collectible value [8]. - The company has expanded its offerings to include consumer products, such as the mini figurine series launched in April 2022, and has collaborated with cultural institutions to develop themed collectible cards [10]. Financial Performance - Suplay's revenue for 2023 and 2024 is reported at 146 million yuan and 281 million yuan, respectively, marking a year-on-year growth of 92.5%. For the first three quarters of 2025, revenue increased by 39.4% to 283 million yuan [11]. - The gross profit margins for 2023, 2024, and the first three quarters of 2025 are 41.7%, 45.8%, and 54.5%, respectively, with adjusted net profit margins of 11.0%, 23.1%, and 30.5% during the same periods [12]. Investment and Future Plans - Prior to the IPO, MiHoYo holds an 11.86% stake in Suplay, making it the largest external investor, with its vice president serving as a non-executive director [13]. - The funds raised from the IPO are intended for diversifying the IP portfolio, expanding collaborations with leading IP licensors, enhancing product innovation, and supporting global market expansion [13].