Group 1 - The investment rating for the industry is "Accumulate (Maintain)" [4] - The report highlights that the IP toy industry in China is experiencing significant growth, with the market size reaching 1,742 billion RMB in 2024, and IP toys accounting for over 43% of this market [2][60] - The report emphasizes the strong financial performance of the company, with projected revenue of 630 million RMB in 2024, representing a year-on-year growth of 30.7% [1][26] Group 2 - The report identifies three core competitive advantages of the company: IP resources, channel coverage, and supply chain efficiency [3][36] - The company has established a unique competitive advantage system in the IP derivative market, creating a complete business loop through self-owned and authorized IP operations [3][36] - The report notes that the company has successfully expanded its overseas market presence, with overseas revenue projected to reach 147.4 million RMB in 2024, a 152% increase year-on-year [1][15] Group 3 - The report discusses the "Guzi Economy," which refers to the economic activities surrounding secondary cultural products, indicating a broad growth potential in this sector [2][36] - The report forecasts that the overall market size for IP derivatives will exceed 3,357 billion RMB by 2029, with a compound annual growth rate of over 14% from 2024 to 2029 [60][64] - The report highlights that the core consumer group for IP toys is primarily under 35 years old, showing a strong interest and emotional connection to IP content [64][68]

Core Viewpoint - The 2025 LEC Global Licensing Expo showcased the booming toy and trendy play market, highlighting significant growth in both domestic and international markets, with a focus on diverse product categories and the integration of cross-industry IP collaborations [1][2]. Industry Overview - The toy market in China is projected to reach a scale of 877 billion yuan by 2025, with exports of dolls and animal toys exceeding 13.31 billion yuan in the first four months of 2023, marking a 9.6% increase [1]. - The trendy play market is experiencing expansion in two dimensions: diversification of product categories and accelerated integration of cross-industry IP collaborations [1][2]. Company Activities - Companies are increasingly investing in the trendy play market, with notable transactions including Quantum Song Group's acquisition of a 61% stake in Shenzhen Yiqi Culture for 235 million yuan and investments by Wanda Film and Reading Group in various trendy play enterprises [1][2]. - The investment in "Super Vitality Factory," a plush toy brand, marks the first instance of a mainstream investment institution entering the plush toy industry in China [2]. Product Diversification - The market is shifting from a focus on blind box competition to a more diverse range of products, with companies like Pop Mart and 52TOYS expanding their offerings to include plush toys, action figures, and various collectibles [2]. - 52TOYS has developed a product range that includes static figures, movable toys, and plush toys, covering 2,800 SKUs, and emphasizes the importance of IP style and differentiation in product development [2][4]. IP Strategy - 52TOYS operates on a model of "self-owned IP operation + authorized IP cooperation," with 35 self-owned IPs and 80 authorized IPs expected to generate 24.5% and 64.5% of revenue, respectively, by the end of 2024 [4]. - The ability to successfully launch original IPs and creatively develop authorized IPs is seen as a competitive advantage in the evolving market landscape [4]. Future Trends - The competition in the trendy play market will increasingly depend on how brands enrich their IP ecosystems, with companies exploring various content forms such as animation and literature to enhance brand presence [4][5]. - The establishment of theme parks and the development of original animations are strategies being employed by leading companies like Pop Mart to deepen the impact of their original IPs [4].

Core Insights - 52TOYS is positioned as a leading player in the IP toy market, leveraging its "IP Central" strategy and comprehensive industry chain layout to enhance its competitive advantage and market presence [1][19]. Group 1: Company Overview - 52TOYS was established in 2015 and has rapidly grown to become a significant player in the IP toy sector, with over 100 proprietary and licensed IPs by the end of 2024 [2][19]. - The company has achieved impressive revenue growth, with sales increasing from 463 million yuan in 2022 to 630 million yuan in 2024, reflecting a compound annual growth rate (CAGR) of 16.7% [2][27]. - The adjusted net profit turned from a loss in 2022 to a profit of 32.01 million yuan in 2024, indicating strong operational resilience [2][27]. Group 2: Market Dynamics - The global IP derivative market is valued at 1.4056 trillion yuan in 2024, with the IP toy segment accounting for 525.1 billion yuan, representing 37.4% of the total market [4][19]. - China's IP derivative market is growing rapidly, with a CAGR of 15.1% from 2020 to 2024, significantly outpacing the global growth rate of 8.3% [4][19]. - The Chinese IP toy market is projected to grow from 43.5 billion yuan in 2020 to 75.6 billion yuan in 2024, with a CAGR of 11.7% [4][19]. Group 3: Competitive Advantages - 52TOYS employs an "IP Central" strategy that integrates IP-driven collaboration across departments, enhancing product design, content insight, and commercialization [6][19]. - The company operates a dual-driven model with both proprietary and licensed IPs, having 35 proprietary IPs and 80 licensed IPs by the end of 2024 [6][19]. - Product innovation is a key pillar of 52TOYS' strategy, with over 500 new SKUs launched annually across various categories, including static figures, movable toys, and mechanical toys [7][19]. Group 4: Distribution and Sales Channels - 52TOYS has established a comprehensive distribution network, combining online and offline channels, with over 400 distributors covering 20,000 retail points [8][19]. - The company has successfully expanded its overseas market presence, with international revenue growing from 35 million yuan in 2022 to 147 million yuan in 2024, achieving a CAGR of over 100% [9][19]. - The sales revenue from distributors accounted for 66.8% of total revenue in 2024, with online sales contributing 22.1% and offline sales 8.8% [39][19]. Group 5: Consumer Engagement and Community Building - 52TOYS has built a robust fan community with over 4.7 million registered members by the end of 2024, enhancing customer loyalty and engagement [10][19]. - The company is transitioning from a focus on single products to developing a content ecosystem around its IPs, which includes novels and comics to extend the lifecycle of its products [10][19].

Core Viewpoint - 52TOYS is positioned as a leading IP toy company in China, leveraging its "IP Central" strategy to drive business expansion and enhance its market presence through a diverse range of IP toys and a comprehensive industry chain layout [1][6]. Group 1: Company Overview - 52TOYS, established in 2012 and launching its brand in 2015, has developed over 100 proprietary and licensed IPs by 2024, making it the second-largest multi-category toy company and the third-largest IP toy company in China by GMV [1][13]. - The company's revenue is projected to grow from 463 million RMB in 2022 to 630 million RMB in 2024, reflecting a CAGR of 16.7%, with adjusted net profit reaching 32.01 million RMB in 2024 [1][21]. - The company operates a dual-driven model with proprietary and licensed IPs, covering various categories such as trendy, sci-fi, and cultural toys, and collaborates with renowned brands like Disney and Warner [2][3]. Group 2: Market Dynamics - The global IP derivative market is substantial, expected to reach 1.4056 trillion RMB by 2024, with China's market growing at a CAGR of 15.1% during the same period [1][46]. - The IP toy segment is the largest within the IP derivative market, projected to reach 525.1 billion RMB globally by 2024, accounting for 37.4% of the total market [1][51]. - China's per capita spending on IP toys is significantly lower than in mature markets, indicating substantial growth potential, with 2024 figures at 53.6 RMB compared to 387.0 RMB in the US and 244.7 RMB in Japan [3][56]. Group 3: Competitive Landscape - The Chinese IP toy market is fragmented, with the top three companies holding only 33.1% of the market share, allowing 52TOYS to leverage its multi-category capabilities to gain a competitive edge [3][56]. - The company ranks third in the overall IP toy market and second among multi-category IP toy companies in China by GMV in 2024 [56][58]. - The increasing influence of adult consumers and the expansion of product categories into various fields are expected to enhance market dynamics and competition [3][56]. Group 4: Business Model and Operations - 52TOYS employs a comprehensive business model that integrates IP operation, product design, production logistics, and channel sales, ensuring a seamless connection across the entire value chain [2][3]. - The company introduces over 500 new SKUs annually, with a product range that includes static and movable toys, catering to both mass and premium markets [2][3]. - The distribution strategy primarily relies on a network of over 400 dealers, covering 20,000 retail points, with significant growth in overseas markets, contributing 1.47 billion RMB in revenue by 2024 [2][3].

Investment Rating - The investment rating for the company is "Positive" [2] Core Viewpoints - 52TOYS is a leading IP toy company in China, with over 100 proprietary and licensed IPs as of the end of 2024. The company has adopted an "IP Central" strategy to drive business expansion through precise consumer insights and comprehensive product development capabilities, enhancing its commercial value and influence [8][9] - The global IP derivative market is projected to grow significantly, with China's IP toy market experiencing the fastest growth rate. The market size for global IP derivatives is expected to increase from 1,020.5 billion RMB in 2020 to 1,405.6 billion RMB in 2024, with a CAGR of 8.3%. In contrast, China's market is expected to grow from 99.4 billion RMB to 174.2 billion RMB during the same period, with a CAGR of 15.1% [31][35] - 52TOYS has established a comprehensive business model that integrates IP operation, product design, production logistics, and channel sales, creating a competitive advantage in the industry [2][29] Summary by Sections Company Overview - 52TOYS has shown continuous revenue growth, with revenue increasing from 463 million RMB in 2022 to 630 million RMB in 2024, representing a CAGR of 16.7%. The adjusted net profit turned positive in 2023, reaching 19.1 million RMB, and is expected to grow to 32.0 million RMB in 2024 [16][18] - The company has a diversified product matrix and operates through a multi-channel sales strategy, including distributors, direct sales, and online platforms, achieving a comprehensive market presence [20][22] Market Analysis - The global IP toy market is projected to reach 525.1 billion RMB by 2024, accounting for 37.4% of the global IP derivative market. North America is the largest regional market, while China and Southeast Asia are the fastest-growing regions [31][36] - The competitive landscape in China's IP toy market is fragmented, with 52TOYS ranking third among IP toy companies and second among multi-category companies by GMV in 2024 [40][45] Business Model - The company's "IP Central" strategy drives its dual approach of operating proprietary and licensed IPs, enhancing its product innovation and market responsiveness [3][14] - 52TOYS collaborates with third-party manufacturers for production, allowing it to focus on product design, marketing, and brand management, optimizing capital investment and resource allocation [20][27]

Core Viewpoint - The article discusses the IPO prospects of Lezi Tiancheng, the parent company of 52TOYS, and compares its market position and performance with competitors like Pop Mart and Blokus, highlighting its challenges in achieving significant revenue growth and brand recognition [3][4][12]. Group 1: Company Overview - Lezi Tiancheng submitted its IPO application to the Hong Kong Stock Exchange on May 22, becoming the fourth toy company to pursue an IPO after Pop Mart, Blokus, and Kayo [3]. - In 2024, Lezi Tiancheng's GMV is projected to be 930 million RMB, with operating revenue of 630 million RMB and adjusted net profit of 32 million RMB [3]. Group 2: Brand Positioning and Product Strategy - Lezi Tiancheng's brand philosophy emphasizes interaction with users, contrasting with Pop Mart's focus on emotional connections and cultural entertainment [4]. - The company has a diverse product line, including static dolls, movable figures, and licensed IPs, with a total of over 115 IPs, surpassing Pop Mart's 80 IPs [4][5]. Group 3: Financial Performance - From 2022 to 2024, Lezi Tiancheng's total revenue grew from 463 million RMB to 630 million RMB, with a compound annual growth rate (CAGR) of approximately 16% [5]. - The revenue from licensed IPs increased significantly, from 233 million RMB to 406 million RMB, with a CAGR of about 32%, indicating a stronger growth in licensed products compared to self-owned IPs [5]. Group 4: Sales Channels and Market Expansion - In 2024, direct sales accounted for 30.9% of revenue, while distribution channels made up 66.8% [6]. - Lezi Tiancheng's overseas revenue grew from 35 million RMB in 2022 to 147 million RMB in 2024, with the overseas revenue share increasing from 7.6% to 23.4% [9][10]. Group 5: Competitive Landscape - Lezi Tiancheng's revenue growth has lagged behind competitors like Pop Mart and Blokus, with the latter surpassing Lezi Tiancheng in revenue since 2023 [12][13]. - The company has struggled to establish a flagship product that can drive significant revenue, leading to a lack of clear brand recognition [15]. Group 6: Profitability and Cost Management - Lezi Tiancheng's adjusted net profit improved from a loss of 57 million RMB in 2022 to a profit of 32 million RMB in 2024, with a net profit margin increasing from -12.3% to 5.1% [18]. - The company has successfully reduced its expense ratio, particularly in sales expenses, by cutting down on the number of physical stores [18]. Group 7: Valuation and Market Outlook - Lezi Tiancheng's valuation remained relatively stable, with a slight increase from 4.25 billion RMB in 2021 to 4.273 billion RMB in 2025, reflecting the overall market sentiment towards the toy industry [19]. - The company's price-to-sales (P/S) ratio is approximately 6.5 times, significantly lower than Pop Mart's 24 times and Blokus's 14 times, indicating a valuation discount due to its weaker performance [19][20].

Core Viewpoint - The Hong Kong stock market is witnessing a surge in IP-related stocks, with companies like Pop Mart and Bluecoco reaching historical highs, and 52TOYS is set to join this trend with its upcoming IPO [1] Group 1: Company Overview - 52TOYS, founded in 2015, specializes in a variety of IP toy products including static figures, movable toys, wind-up toys, transforming mechas, assembly toys, plush toys, and related merchandise [1][2] - As of the end of last year, 52TOYS owns 35 proprietary IPs and has 80 licensed IPs, including popular franchises like Crayon Shin-chan and Disney [2] Group 2: IPO Details - 52TOYS plans to raise between $100 million to $200 million (approximately HKD 780 million to HKD 1.56 billion) through its IPO, with funds allocated for diversifying its IP matrix, product design, channel expansion, marketing, potential investments, and operational costs [1] - The company aims to complete the Hong Kong listing process in the second half of the year [1] Group 3: Sales and Distribution - 52TOYS sells its products through direct brand stores, unmanned retail machines, online platforms, and distributors, with plans to open over 100 self-operated stores in China in the coming years [3] - As of last year, the company had 10 direct brand stores and 336 distributors in China, along with 90 overseas distributors covering regions like Southeast Asia, Japan, South Korea, and North America [3] Group 4: Financial Performance - The projected revenue for 52TOYS from 2022 to 2024 is approximately CNY 463 million, CNY 482 million, and CNY 630 million, respectively, with licensed IP revenue expected to grow from CNY 233 million to CNY 406 million during the same period [3] - Recently, 52TOYS secured an investment of CNY 144 million from Wanda Film's subsidiary and Ru Yi Xing Chen, which will facilitate strategic cooperation in product development and marketing [3]

Core Viewpoint - 52TOYS is set to become the latest IP toy company to list on the Hong Kong Stock Exchange, following the success of other companies like Pop Mart and Blokus, highlighting the growing interest in the IP toy market [2][3]. Group 1: Company Overview - 52TOYS, founded in 2015, is the second-largest multi-category IP toy company in China, offering a diverse range of products including static figures, movable figures, wind-up toys, transforming robots, and plush toys [5][6]. - The company is led by co-founders with extensive experience in the toy industry, including CEO Chen Wei, who has over 20 years of experience and has previously held distribution rights for major international toy brands [6]. Group 2: Product and Market Strategy - 52TOYS has developed a unique "IP Central" strategy that drives cross-departmental collaboration around IP, enabling the company to launch innovative products that resonate with consumers [7]. - The company has successfully launched several collaborative products with popular IPs, such as the "Beast Box" series, which has gained significant traction in both domestic and international markets [6][11]. Group 3: IP and Revenue Model - 52TOYS operates a dual-driven model with both proprietary and licensed IPs, boasting 35 proprietary IPs and 80 licensed IPs as of the end of 2024 [14][16]. - The company has established long-term partnerships with IP rights holders, enhancing the value of its products and extending the lifecycle of its IPs [14][16]. Group 4: International Expansion - 52TOYS has seen remarkable growth in overseas markets, with revenue increasing from 35 million to 147 million yuan from 2022 to 2024, reflecting a compound annual growth rate of over 100% [17]. - The company has successfully entered key international markets, including Southeast Asia, Japan, and North America, with its products gaining popularity among overseas consumers [17][18]. Group 5: Market Potential - The global IP toy market is projected to grow significantly, with an expected market size of 771.7 billion yuan by 2029, indicating a compound annual growth rate of 8.0% from 2024 to 2029 [18]. - As China's GDP per capita surpasses $10,000, consumer spending on entertainment products is anticipated to increase, providing a favorable environment for the growth of the IP toy industry [19].