Core Viewpoint - Bubble Mart (09992.HK) is experiencing significant growth, with projected revenue for the first half of the year expected to increase by no less than 200% and net profit by no less than 350% [1] Group 1: Financial Performance - Bubble Mart's revenue for the first half of last year was 45.58 billion, a year-on-year increase of 62%, while net profit was 9.21 billion, up 93.32% [1] - For the current year, revenue is projected to be no less than 137 billion, with net profit exceeding 41 billion and adjusted net profit over 46 billion [1] - The company's revenue and net profit for the first half of this year are expected to surpass the total figures for the entire previous year [1] Group 2: Reasons for Performance - The growth is attributed to the increased global recognition of the brand and its IP, along with a diverse product range that boosts revenue [1] - Continuous growth in overseas revenue and structural changes in income positively impact gross and net profit margins [1] - Scale effects and ongoing optimization of product costs and expense management have enhanced profitability [1] Group 3: International Expansion - Bubble Mart's overseas business is rapidly growing, with expectations that overseas revenue may surpass domestic revenue this year [2] - The company anticipates a sales growth rate of over 50% in 2025, with overseas and Hong Kong/Macau business potentially exceeding 100% growth [2] - In the first quarter of this year, overall revenue increased by 165% to 170%, with overseas revenue soaring by 475% to 480% [2] Group 4: Industry Trends - China's toy exports, particularly dolls and animal toys, have exceeded 13.31 billion, with a growth rate of 9.6% in the first four months of this year [3] - Following the success of the "Labubu" IP, Bubble Mart is expanding its IP portfolio and has opened a global flagship store for its independent jewelry brand popop in Shanghai [3]

Investment Rating - The report maintains a positive outlook on the gaming sector, particularly recommending Giant Network's "Supernatural Action Group" due to its strong performance and growth potential [6]. Core Insights - The gaming sector is expected to benefit from clear policy support and its nature as a resilient consumer segment, with a price-to-earnings (PE) ratio below 20x, indicating attractive odds for investment [6]. - Giant Network's "Supernatural Action Group" has shown significant growth in daily active users (DAU) since the beginning of the year, demonstrating its long-term operational capabilities and potential for revenue growth [6]. - Century Huatong's revenue increased by 16% in March, maintaining its position as the second-largest mobile game publisher in China, with notable titles achieving record global revenues [6]. - The report highlights the potential of various sectors including trendy consumer products, music, concerts, and gaming, with specific mentions of companies like Alibaba Pictures and Pop Mart [6]. Summary by Sections Gaming Sector - Continued recommendation for the gaming sector, with a focus on Giant Network's "Supernatural Action Group" and Century Huatong's strong revenue growth [6]. - Notable performance of other companies such as Netease and various emerging titles in the mobile gaming market [6]. Entertainment and Media - Positive outlook on consumer spending in trendy products and music, with companies like NetEase Music and Tencent Music showing growth in paid user segments [6]. - Alibaba Pictures rebranding to Damai Entertainment and its strategic moves in the concert and IP derivative markets [6]. AI Applications - Attention on undervalued AI applications with rapid commercialization progress, highlighting companies like Meitu and Kuaishou [6]. - Kuaishou's AI video monetization exceeding 100 million RMB monthly, indicating strong market performance [6]. Advertising Sector - Concerns regarding the recent adjustments in Focus Media due to market fears of domestic demand weakness, but the company maintains advantages in elevator advertising and high dividend ratios [6].