Company Overview - The company is a leading player in the rapidly growing building block toy sector, established in 2014 and launched its proprietary IP "Buluco" in 2017, achieving a revenue of 2.24 billion yuan and a net profit of 585 million yuan by 2024 [1] - The founder, Zhu Weisong, has significant ownership with 54.95% of shares prior to the IPO, and the core team has substantial equity through an employee incentive program [1] Industry Analysis - The global toy market was valued at 773.1 billion yuan in 2023, with a projected CAGR of 5.1% from 2023 to 2028; the building block and character toy segments are expected to grow at CAGRs of 15%, 9.3%, and 20.5% respectively [1] - In China, the toy market reached 104.9 billion yuan in 2023, with a CAGR of 9.5% from 2023 to 2028; the building block and character toy segments are projected to grow at CAGRs of 22%, 17.7%, and 41.3% respectively, indicating a strong growth advantage for building block character toys [1] - The global market for building block character toys is dominated by Bandai and LEGO, holding market shares of 39.5% and 35.9% respectively, while Buluco leads the Chinese market with a 30.3% share [1] Competitive Advantages - The company exemplifies IP commercialization with advantages in design and R&D, including a robust patent portfolio and a short product launch cycle [2] - Multi-channel sales strategies effectively penetrate lower-tier markets [2] - Internet marketing fosters a fan ecosystem through member interaction [2] - The company has a substantial reserve of licensed IPs and high market recognition for its proprietary IP [2] Growth Strategy - The company has adopted a "Three All" strategy focusing on "All demographics, All price ranges, Globalization" to enhance market share [2] - Plans include establishing a female-oriented studio to cater to female consumers and innovating complex building toys to attract adult customers [2] - The pricing structure will be adjusted to ensure affordability across various price points [2] - There is significant growth potential in overseas markets, with future international expansion anticipated [2] Profit Forecast and Investment Outlook - The company is expected to focus its strategy on building block character toys, supported by the "Three All" strategy, ensuring future growth [2] - Revenue growth rates are projected at 88.38%, 51.02%, and 32.40% for 2025, 2026, and 2027 respectively [3] - Profit estimates for 2025, 2026, and 2027 are 1.076 billion yuan, 1.751 billion yuan, and 2.480 billion yuan respectively, with corresponding PE ratios of 28x, 17x, and 12x [3]