Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

52TOYS Development / Equity Capital Markets

<ul>
<li>52TOYS Development filed to go public in Hong Kong. The Beijing-based toymaker is planning H-share listing that could raise up to $200M.</li>
<li>In my second insight about 52TOYS IPO, I discuss IPO valuation, examine competitive landscape and focus on comparable company analysis.</li>
<li>52TOYS manages 35 proprietary IPs and 80 licensed IPs, including pop, sci-fi and cultural IPs. The company collaborates with 400+ distributors, covering 20,000+ sales outlets. </li>
</ul>


52TOYS Development filed to go public in Hong Kong. The Beijing-based toymaker is planning H-share listing that could raise up to $200M.
In my second insight about 52TOYS IPO, I discuss IPO valuation, examine competitive landscape and focus on comparable company analysis.
52TOYS manages 35 proprietary IPs and 80 licensed IPs, including pop, sci-fi and cultural IPs. The company collaborates with 400+ distributors, covering 20,000+ sales outlets. 


52TOYS Development IPO Valuation Analysis: Modest Upside Vs. Series C+ Round Valuation Looks Fair

<ul>
<li>52TOYS Development, a Beijing-based multi-genre IP toy company, is seeking Hong Kong IPO that would raise up to $200M.</li>
<li>Founded in 2012 by Mr. Chen and Mr. Huang, 52TOYS positions itself as a toymaker with a strong emphasis on collectible mecha and sci-fi aesthetics.</li>
<li>52TOYS has made a big push online and in overseas markets. I believe the company has primary growth drivers such as international expansion and new licensed and proprietary IP products.</li>
</ul>


52TOYS Development, a Beijing-based multi-genre IP toy company, is seeking Hong Kong IPO that would raise up to $200M.
Founded in 2012 by Mr. Chen and Mr. Huang, 52TOYS positions itself as a toymaker with a strong emphasis on collectible mecha and sci-fi aesthetics.
52TOYS has made a big push online and in overseas markets. I believe the company has primary growth drivers such as international expansion and new licensed and proprietary IP products.


52TOYS Development IPO Preview: A “Must Own” Stock, Big Push In Overseas Markets Looks Promising

APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/52toys-development" target="_blank" data-smartkarma-citation="entities:45230:1" rel="noopener">52TOYS Development (TOY HK)</a>  is looking to raise up to US$200m in its upcoming HK IPO.</li>
<li>52Toys Development is one of the leading IP toy companies in China, with a portfolio of over 100 proprietary and licensed intellectual properties (IPs) as of Dec 2024.</li>
<li>In this note, we look at the company’s past performance.</li>
</ul>



52TOYS Development (TOY HK)  is looking to raise up to US$200m in its upcoming HK IPO.
52Toys Development is one of the leading IP toy companies in China, with a portfolio of over 100 proprietary and licensed intellectual properties (IPs) as of Dec 2024.
In this note, we look at the company’s past performance.


52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>For IP toy, the ability to provide a variety of categories is valuable,which means brands have access to diverse/creative designs/production based on IP characteristics, highlighting/interpreting the core of each IP.</li>
<li>Driven by top-tier licensed IPs, 52TOYS achieved solid growth, but its revenue scale/profit margin are inferior to peers. Due to intense competition, 52TOYS's market share may be further squeezed.</li>
<li>The post-money valuation after Series C+ Financing is RMB4.27 billion. Based on the analysis, we think valuation of 52TOYS should be lower than <a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart (9992 HK), </a><a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks (325 HK)</a>.</li>
</ul>


For IP toy, the ability to provide a variety of categories is valuable,which means brands have access to diverse/creative designs/production based on IP characteristics, highlighting/interpreting the core of each IP.
Driven by top-tier licensed IPs, 52TOYS achieved solid growth, but its revenue scale/profit margin are inferior to peers. Due to intense competition, 52TOYS's market share may be further squeezed.
The post-money valuation after Series C+ Financing is RMB4.27 billion. Based on the analysis, we think valuation of 52TOYS should be lower than Pop Mart (9992 HK), Bloks (325 HK).


Pre-IPO 52TOYS Development - The Business Model and the Concerns Behind

Sunny & Sandy (Hunan) Group / Equity Capital Markets

<ul>
<li>S&amp;S strives to demonstrate that IP toys is a scalable business driven by efficiency.This "MIXUE-style" expansion strategy enables it to rapidly penetrate the vast lower-tier markets and drive explosive growth.</li>
<li>The "To C for traffic diversion + To B for stable profits" model not only builds brand recognition through terminal products but also smooths cash flow by leveraging enterprise orders.</li>
<li>Pop Mart enjoys higher valuation premium thanks to its high-barrier IP ecosystem.S&amp;S‘s model is a more "industrialized" path that tests execution ability.Valuation of S&amp;S should be lower than Pop Mart.</li>
</ul>


S&amp;S strives to demonstrate that IP toys is a scalable business driven by efficiency.This "MIXUE-style" expansion strategy enables it to rapidly penetrate the vast lower-tier markets and drive explosive growth.
The "To C for traffic diversion + To B for stable profits" model not only builds brand recognition through terminal products but also smooths cash flow by leveraging enterprise orders.
Pop Mart enjoys higher valuation premium thanks to its high-barrier IP ecosystem.S&amp;S‘s model is a more "industrialized" path that tests execution ability.Valuation of S&amp;S should be lower than Pop Mart.


Pre-IPO Sunny & Sandy (Hunan) Group - Deep Dive the Business Model, Concerns, Thoughts on Valuation

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52TOYS Development (TOY HK)

52TOYS Development IPO Valuation Analysis: Modest Upside Vs. Series C+ Round Valuation Looks Fair

Beijing-based 52TOYS files to go public and plans H-share listing in Hong Kong, aiming to raise up to $200M. In my second insight I discuss...

Andrei Zakharov

52TOYS Development IPO Preview: A “Must Own” Stock, Big Push In Overseas Markets Looks Promising

Beijing-based 52TOYS Development filed to go public in Hong Kong. I like the toymaker's diversified IP product portfolio, scalable business model...

Andrei Zakharov

52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market

52TOYS Development is set to raise up to US$200m in its HK IPO, showcasing its position as a leading IP toy company in China with a diverse...

Hong Jie Seow

Pre-IPO 52TOYS Development - The Business Model and the Concerns Behind

52TOYS had lower revenue scale and profit margin than peers. The model of relying on product social value and scarcity to drive repeat purchases...

Xinyao (Criss) Wang

Pre-IPO Sunny & Sandy (Hunan) Group - Deep Dive the Business Model, Concerns, Thoughts on Valuation

Sunny & Sandy shows IP toys as scalable business with efficient "MIXUE-style" expansion strategy for rapid growth, while Pop Mart's high-barrier IP...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

52TOYS Development IPO Valuation Analysis: Modest Upside Vs. Series C+ Round Valuation Looks Fair

​Beijing-based 52TOYS files to go public and plans H-share listing in Hong Kong, aiming to raise up to $200M. In my second insight I discuss...

Andrei Zakharov

52TOYS Development IPO Preview: A “Must Own” Stock, Big Push In Overseas Markets Looks Promising

​Beijing-based 52TOYS Development filed to go public in Hong Kong. I like the toymaker's diversified IP product portfolio, scalable business model...

Andrei Zakharov

52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market

​52TOYS Development is set to raise up to US$200m in its HK IPO, showcasing its position as a leading IP toy company in China with a diverse...

Hong Jie Seow

Pre-IPO 52TOYS Development - The Business Model and the Concerns Behind

52TOYS had lower revenue scale and profit margin than peers. The model of relying on product social value and scarcity to drive repeat purchases...

Xinyao (Criss) Wang

Pre-IPO Sunny & Sandy (Hunan) Group - Deep Dive the Business Model, Concerns, Thoughts on Valuation

Sunny & Sandy shows IP toys as scalable business with efficient "MIXUE-style" expansion strategy for rapid growth, while Pop Mart's high-barrier IP...

Xinyao (Criss) Wang

Beijing-based 52TOYS files to go public and plans H-share listing in Hong Kong, aiming to raise up to $200M. In my second insight I discuss...

Beijing-based 52TOYS Development filed to go public in Hong Kong. I like the toymaker's diversified IP product portfolio, scalable business model...

52TOYS Development is set to raise up to US$200m in its HK IPO, showcasing its position as a leading IP toy company in China with a diverse...