Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its successful globalization strategy and structural improvement in profitability [5]. Core Insights - The company is expected to achieve significant growth in net profit from 11.17 billion to 22.27 billion RMB from 2025 to 2027, reflecting a year-on-year increase of 257.5%, 56.5%, and 27.3% respectively, with corresponding PE ratios of 35.4, 22.6, and 17.7 [5]. - The report highlights the company's successful expansion in both domestic and international markets, with substantial revenue growth driven by refined operations in China and rapid overseas market penetration [5][8]. - The diversification of the company's IP matrix has reduced reliance on a single IP, with plush toy revenue significantly increasing by 1276.2% year-on-year in the first half of 2025 [5]. Summary by Sections Market Data - The closing price of the stock is 322.2 HKD, with a market capitalization of 432.7 billion HKD and a total share count of 1.34 billion [2]. Financial Projections - Total revenue is projected to grow from 6.3 billion RMB in 2023 to 63.19 billion RMB in 2027, with a compound annual growth rate (CAGR) of 37% [7]. - The gross margin is expected to improve from 61.3% in 2023 to 73.0% in 2027, indicating enhanced profitability [7]. Growth Drivers - The company plans to expand its overseas store count to over 200 by the end of the year, targeting emerging markets in the Middle East, Central Europe, and Central South America [8]. - Innovations in product categories and a strong IP matrix are anticipated to continue driving revenue growth and market share [8]. Supply Chain and Production Capacity - The company has upgraded its supply chain through lean production and automation, increasing monthly production capacity for plush toys to 30 million units [6]. - Strategic plans include establishing six global production bases to enhance supply chain flexibility and responsiveness [6].