Known as Jay Chou concept stock $STARPLUS LEGEND (06683.HK)$ After a sharp drop of more than 70% yesterday, the stock price rebounded today. As of press release, it rose 30.12% to HK$3.37.

According to public information, the company is indirectly owned by top singer Jay Chou's mother, Ye Huimei, and currently has celebrity IP groups such as Jay Chou and Liu Yuhong, so it is regarded as a “Jay Chou concept stock.”

In terms of news, Superstar Legend's stock price fell sharply yesterday, triggering the market adjustment mechanism several times. Judging from the following trend, the decline in superstar legends was close to 80% at one point. Until yesterday's close, it fell 72.24% to close at HK$2.59.

In response, the company stated on unusual fluctuations in stock prices and trading volume, confirming that the Group's business operations remained normal, that there were no significant adverse changes in business operations or financial conditions, and that there were no changes in the controlling shareholders' shares.

Why did the stock price plummet?

Although Superstar Legends did not explain the reason for the sharp drop in stock prices in the announcement, some reports indicated that it was related to investors' profit recovery.

On September 11, the relevant person in charge of Superstar Legends said, “Investors' decisions are often based on diversified investment strategies and funding arrangements, with both investment costs and return requirements. Due to the company's good stock price performance earlier, some shareholders who entered the market may have obtained large returns. Coupled with recent market turmoil and pressure on the Hang Seng Index, some shareholders' profits have rebounded, which is a normal market operation category. We believe this will only have a short-term impact on stock prices.”

Furthermore, judging from Hong Kong Stock Connect data, in the past 20 days, the Southbound net sold 2.0495 million shares, accounting for 24.59% of tradable shares.

Superstar Legend's IP business performed well in the first half of the year

Superstar Legend's financial report for the first half of the year released at the end of August showed that the company's performance improved significantly. In particular, strong growth in the IP business played a key role in the sharp increase in overall revenue. In the first half of the year, the company's revenue increased 76.0% year over year, reaching 0.27 billion yuan. Although gross margin fell 10.9 percentage points to 50.3% year over year, this level remains high in the same industry.

The main reason for the decline in gross margin is that the company is actively expanding its revenue sources, leading to changes in the revenue structure. In particular, the gross margin of the TV program production portion is relatively low. Marketing expenses increased 45.1% year over year to 47.29 million yuan; net profit increased 55.5% to 25.45 million yuan; adjusted net profit (considering listing fees and stock remuneration) increased 2.8% year over year to 25.76 million yuan.

In terms of the new retail business, the company achieved remarkable results through the IP marketing promotion strategy. Revenue from the new retail business increased 24.0% year-on-year to 0.11 billion yuan. This increase was mainly due to increased sales of the flagship product Magic Dock Coffee. Sales increased from 52.8 million yuan last year to 71.2 million yuan this year, up about 35% year over year.

Edit/Rocky