Incident: Mingchuang Premium released its FY2024H1 financial report. The company's revenue and profitability in a single quarter reached record highs during the reporting period, achieving breakthroughs. The company's FY2024Q2 (corresponding to 2023Q4) achieved revenue of 3.841 billion yuan, yoy +54.0%; gross profit of 1,657 billion yuan, gross margin of 43.1%, another record high; adjusted net profit of 660 million yuan, yoy +77.0%, and an adjusted net profit margin of 17.2%.
Improve domestic floor efficiency and further tap the potential of a sinking market. FY2024Q2's domestic revenue was 2,347 billion yuan, yoy +55.7%, mainly benefiting from the increase in offline store revenue. By the end of the quarter, the number of domestic stores had a net year-on-year increase of 601 to 3,926.
Overseas business is expanding rapidly, and the future can be expected. FY2024Q2's overseas revenue was 1,494 billion yuan, yoy +51.4%, accounting for 39% of overseas market revenue. By the end of the quarter, the number of overseas stores was 2,487, a net increase of 372 compared to the previous year.
TOPTOY innovates products, lays out trendy IP ecosystems, and continuously optimizes profit structures. FY2024Q2TOPTOY's revenue was 188 million yuan, yoy +90%, of which own products accounted for 35% and third-party brands accounted for 65%. By the end of the quarter, TOPTOY had a total of 148 offline stores, including 14 direct-run stores and 134 franchisees, with a net increase of 26 new stores for the quarter.
Investment suggestion: The IP design+product is driven by Wang Shuangwheel. The company continues to promote the IP strategy, cooperate with well-known IPs such as Disney and Marvel to launch a series of high-margin products, while actively developing its own brands to enhance product quality and competitiveness. In the future, Mingchuang Premium will continue to accelerate its global layout, focus on expanding developed markets such as Europe and the US, and further improve its brand vision of the “World's No.1 IP Design Group”. It is estimated that in FY24/25/26, the company's revenue will reach 158.92/193.87/22.231 billion yuan, and net profit to mother will reach 27.72/30.44/35.34 billion yuan, yoy +56.7%/9.8%/16.1%, respectively. The company's performance continues to exceed expectations and further enhances confidence. It is optimistic about the company's IP strategic prospects and the continued high growth rate of overseas stores, giving it a “buy” rating.
Risk warning: Geopolitical risks affect the company's development; store expansion and customer flow fall short of expectations; overseas market operating risks; brand upgrade progress falls short of expectations.