Key points of investment:
The target price was maintained at 75.48 yuan, and the holdings increase rating was maintained. The company hopes to benefit from the rapid development of the Chaowan industry and the strong consumption capacity dividend where Gen Z is gradually becoming the main consumer force. Maintained net profit of 1888/307/487 million yuan in 2020 and 2022, the target price was 75.48 yuan, increasing the rating.
Incident: Company announcement: 1) An equity transfer agreement was signed to purchase 82.89% of the shares of Dolls One Technology Co., Ltd. held by Liang Haodong, Liang Wei and Gold Nugget Chain with 15.1302 million yuan in cash. After the acquisition, Dolls One will become the company's holding subsidiary. 2) Announce the plan to issue A-share shares to specific targets (revised draft), issue no more than 30% of the current total share capital, and raise no more than 740 million yuan for automated laser processing equipment and IP derivatives business.
The acquisition of Doll-One enhances synergies, and refinancing lays the foundation for Chaoyan's layout. 1) Dolls One launched an IP blind box machine. Combining unmanned retail and trendy play, commercial enterprises across the country have a wide range of locations, opening up a new trend of blind box sales. Wholly-owned subsidiaries Interactive Media and Dolls One are located upstream and downstream of the industry chain respectively. The acquisition deepened the company's industrial chain layout based on IP derivatives and enhanced upstream and downstream synergies. 2) Of this refinancing of 740 million yuan, 470 million yuan will be used for IP derivatives retail promotion projects, and 85 million yuan will be used for IP derivatives flexible intelligent production projects. It is expected that a three-dimensional system of production, promotion and R&D will be established around IP derivatives. It is planned to set up 80 offline trendy play experience stores within 3 years, add 80,000 unmanned retail terminals within 4 years, strengthen IP monetization capabilities, increase the company's market influence, and lay the foundation for Chaopan's layout.
Catalysts: The consumption capacity of consumers in the blind box industry is rising in the “Z era”, the live streaming industry is developing rapidly, and the second-hand blind box market is developing rapidly.
Risk warning: policy regulation risks, risk of IP introduction and traffic attraction falling short of expectations