Core Viewpoint - The company is experiencing strong performance in its new IP product line, with popular products frequently sold out due to supply constraints rather than weak demand. The global IP market presents significant growth opportunities, with the company expected to achieve substantial revenue growth by 2025 [1][2][4]. Group 1: Product Performance - The new IP product line, including Crybaby and Twinkle Twinkle, is performing well, indicating a supply bottleneck rather than a lack of demand [6][8]. - Popular products such as Twinkle Twinkle's "Bee Your Honey" figurine (priced at 199 RMB) and various Crybaby products (priced between 79-199 RMB) are experiencing stock shortages [7]. Group 2: Global Expansion and Brand Collaborations - The company is actively expanding its global presence and engaging in cross-brand collaborations, such as partnerships with Godiva and Chopard [9]. - New stores have opened in key cities like Berlin and Melbourne, indicating strong consumer interest in the company's IP and products [9]. Group 3: Financial Projections - The company is projected to achieve revenues of 31.046 billion RMB in 2025, representing a 138% year-on-year growth, and 42.994 billion RMB in 2026, with a 38% growth [10]. - Adjusted net profit is expected to reach 9.821 billion RMB in 2025, a 205% increase, and 13.965 billion RMB in 2026, a 42% increase [11]. Group 4: Market Potential - The global IP market is estimated to be worth approximately 800 billion USD, with the company's market share currently at only 2.3%, indicating substantial growth potential [14]. - The company aims to evolve into a combination of Bandai Namco, LEGO, and Disney, suggesting that its growth story is still in the early stages [14]. Group 5: Valuation and Investment Opportunity - The current stock price of 246 HKD offers over 48% upside potential to the target price of 365 HKD, based on a projected P/E ratio of 46 times for 2025 [16][19]. - The company’s strong IP product flywheel effect and efficient direct sales model are seen as key to successful global expansion [16].

Core Viewpoint - The popularity of the collectible toy brand Labubu has surged globally, with celebrities endorsing it, leading to a significant increase in demand and subsequent issues with scalpers [1][4][11] Company Developments - TOP TOY, a collectible toy brand under Miniso, is reportedly seeking to go public in Hong Kong, having engaged JPMorgan and UBS for its IPO process [1][4] - TOP TOY aims to introduce new investments from sovereign wealth funds before selling shares, marking its second attempt at an IPO since March [1][4] - The brand was established in December 2020 and has expanded its product offerings significantly, with around 11,000 SKUs by the end of last year [4] Financial Performance - TOP TOY's revenue for 2024 is projected to grow by 44.71% to 984 million RMB, with GMV increasing by 41.04% to 814 million RMB [4][5] - The total number of transactions increased by 56.71% to approximately 19.9 million, although the average transaction value decreased by 9.73% to 109.5 RMB [4][5] - Compared to competitors, TOP TOY's performance lags behind leading companies like Pop Mart, which reported revenues of 13.038 billion RMB in 2024 [4][6] Market Position and Strategy - TOP TOY's self-owned IP accounts for a low single-digit percentage of its revenue, relying heavily on third-party brand products [6][8] - The company plans to differentiate itself by focusing on global IPs rather than developing its own, aiming to create products through reinterpretation of existing popular IPs [8][9] - TOP TOY has ambitious plans to open over 1,000 stores globally within five years, with expectations that overseas sales will exceed 50% of total sales [9][10] Competitive Landscape - The collectible toy market is competitive, with companies like Pop Mart and 52TOYS also pursuing IPOs and expanding their market presence [1][11] - Pop Mart's revenue from overseas markets has seen significant growth, indicating a trend among collectible toy brands to expand internationally [10][11]

Core Viewpoint - 52TOYS is projected to achieve a revenue of 630 million RMB and a net profit of approximately 30 million RMB in 2024, indicating growth in its financial performance [1][2]. Financial Performance - Revenue for 52TOYS from 2022 to 2024 is reported as 463 million RMB, 482 million RMB, and 630 million RMB respectively, while net losses are recorded at 1.71 million RMB, 71.93 million RMB, and 122 million RMB [2][3]. - Adjusted net profit (non-IFRS) shows a recovery from -56.75 million RMB in 2022 to 32.01 million RMB in 2024, reflecting a positive trend [4][12]. - The gross profit margin for 2024 is 39.9%, with a notable increase in gross profit from 133.65 million RMB in 2022 to 251.53 million RMB in 2024 [12][14]. Revenue Sources - The majority of 52TOYS' revenue comes from licensed IP, contributing 64.5% of total revenue in 2024, while self-owned IP sales are 1.54 billion RMB [6][10]. - The company has developed and operates 35 self-owned IPs, with significant contributions from popular IPs like Sleep and Beast Box [8][10]. Market Position - The IP derivative market in China is projected to grow from 174.2 billion RMB in 2024 to 335.7 billion RMB by 2029, with the IP toy market expected to reach 756 billion RMB in 2024 [6]. - 52TOYS ranks third among Chinese IP toy companies and second among multi-category IP toy companies based on GMV in 2024 [17]. Sales Channels - 52TOYS primarily relies on distributors for sales, with distributor sales accounting for 66.8% of total revenue in 2024, while direct sales contribute only 30.9% [15][16]. - The company has expanded its sales channels to Southeast Asia, Japan, South Korea, and North America, with domestic revenue making up 76.6% of total revenue in 2024 [17][18]. IP Licensing and Costs - 52TOYS has invested over 100 million RMB in licensing fees for IPs over the past three years, with significant upcoming expirations for major IPs like Disney and Crayon Shin-chan [10][13]. - The cost of goods sold for 52TOYS' products has been increasing, with a notable rise in costs associated with licensed IP [14].