This report is read as follows:
Through the deep layout of blind box IP business, the company is expected to benefit from the rapid development of the blind box industry and the dividend of strong spending power that Generation Z has gradually become the main consumer.
Main points of investment:
Maintain the target price of 62.88 yuan and maintain the overweight rating. Through the in-depth layout of the blind box business, the company is expected to fully benefit from the rapid development of the blind box industry and the strong spending power dividend that Generation Z has gradually become the main consumer. Maintain the 2020-2022 homing net profit of 188,000,000 yuan, maintain the target price of 62.88 yuan, and maintain the overweight rating.
Event: the company released its semi-annual report for 2020. during the reporting period, the company achieved operating income of 59.04 million yuan, down 54.38% from the same period last year, and realized a net profit of 984000 yuan, down 92.0% from the same period last year. Because the company is located in Wuhan, which is greatly affected by the epidemic, the overall performance is in line with expectations.
Short-term affected by the epidemic performance pressure, long-term to enjoy the trend to play the market high growth dividend. The decline in the company's performance during the reporting period was mainly due to the fact that it was located in Wuhan and had been shut down for a long time, but the production capacity had returned to normal in May and the order delivery was completed. China's fashion toy market has a compound growth rate of 34.6% from 2015 to 2019, which is still in a period of rapid growth. The company's deep layout of fashion toy IP business, such as blind boxes, has accelerated the pace of original and imported production of IP since 2020. The first original product "UNI" series of blind boxes has been put on the market, and 10 exclusive IP blind boxes have been contracted and developed. at present, 2 series have been shipped, 4 series are in production, and 4 series are overhauling models. The company hopes to fully benefit from the rapid development of the fashion play industry such as Blind Box.
Catalyst: blind box industry consumer main body "Z era" consumption capacity rise, live broadcast industry rapid development, blind box second-hand market rapid development.
Risk hints: policy regulatory risks, IP introduction and traffic attraction are not up to expectations