HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>The assembly character toy segment market size is not big and Bloks is already China’s largest player. So, there will be a day when the growth ceiling is reached.</li>
<li>Bloks’ business model is more similar to Pop Mart, rather than LEGO, but Bloks’ profitability is lagging behind both of them. The current high revenue growth may not be sustainable.</li>
<li>Pre-IPO valuation of Bloks reached RMB7.2 billion. Valuation of Bloks should be lower than Pop Mart. If Bloks’ valuation could reach the industry average after IPO, it is already good.</li>
</ul>


The assembly character toy segment market size is not big and Bloks is already China’s largest player. So, there will be a day when the growth ceiling is reached.
Bloks’ business model is more similar to Pop Mart, rather than LEGO, but Bloks’ profitability is lagging behind both of them. The current high revenue growth may not be sustainable.
Pre-IPO valuation of Bloks reached RMB7.2 billion. Valuation of Bloks should be lower than Pop Mart. If Bloks’ valuation could reach the industry average after IPO, it is already good.


Pre-IPO Bloks Group (PHIP Updates) - Some Points Worth the Attention

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

52TOYS Development / Equity Capital Markets

<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

HK/China Equity Long-Short

Osbert Tang, CFA

TOP TOY International Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/top-toy-international-group-limited" target="_blank" data-smartkarma-citation="entities:45838:1" rel="noopener">TOP TOY International Group (TOYTOY HK)</a> is seeking an IPO in Hong Kong. In the latest Series A financing, it is valued at US$1.3bn post-money.</li>
<li>It has solid market growth potential, IP and product development strengths, an extensive distribution network, and good leverage on its parent <a href="https://www.smartkarma.com/entities/miniso-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:36659:1" rel="noopener">MINISO Group Holding (9896 HK)</a>. </li>
<li>We initially assess a fair FY26F PER of 20-22x, equating to a slight premium to <a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (325 HK)</a> but a discount to <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>. </li>
</ul>



TOP TOY International Group (TOYTOY HK) is seeking an IPO in Hong Kong. In the latest Series A financing, it is valued at US$1.3bn post-money.
It has solid market growth potential, IP and product development strengths, an extensive distribution network, and good leverage on its parent MINISO Group Holding (9896 HK). 
We initially assess a fair FY26F PER of 20-22x, equating to a slight premium to Bloks Group (325 HK) but a discount to Pop Mart (9992 HK). 


TOP TOY Intl: Pre-IPO - More than Just Emotional Value

<ul>
<li>TOP TOY International Group Limited, a world-class pop toy brand company from China, filed to go public in Hong Kong.</li>
<li>Founded in 2020, the brand has quickly positioned itself as a domestic rival to China’s Pop Mart, capitalizing on the country’s booming “blind box” and designer toy craze.</li>
<li>TOP TOY has shown strong growth and execution, going from RMB641m in sales of pop toy products in 2022 to RMB2,554m expected this year.</li>
</ul>


TOP TOY International Group Limited, a world-class pop toy brand company from China, filed to go public in Hong Kong.
Founded in 2020, the brand has quickly positioned itself as a domestic rival to China’s Pop Mart, capitalizing on the country’s booming “blind box” and designer toy craze.
TOP TOY has shown strong growth and execution, going from RMB641m in sales of pop toy products in 2022 to RMB2,554m expected this year.


TOP TOY IPO: From China To The World — Rapid Growth and Solid Profitability Under MINISO Group

Hangzhou Tongshifu Cultural and Creative Group / Equity Capital Markets

Hangzhou Tongshifu Cultural and Creative Group

<ul>
<li>Despite TONGSHIFU’s leading position through vertically integrated business model, the inherent limitations of the industry are obstacles for further expansion. Performance growth is clearly constrained by the overall market capacity.</li>
<li>The "double attack" market pattern makes it more difficult for TONGSHIFU to achieve breakthrough growth within the existing market. Outside of copper-based products, TONGSHIFU hasn’t found a second growth curve.</li>
<li>TONGSHIFU’s valuation 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</a>/<a href="https://www.smartkarma.com/entities/laopu-gold-co-ltd" target="_blank" data-smartkarma-citation="entities:44036:1" rel="noopener">Laopu Gold</a>/Bloks due to the big gap in growth potential/profitability/cashability. However, valuation could be higher than industry average due to leading market position.  </li>
</ul>


Despite TONGSHIFU’s leading position through vertically integrated business model, the inherent limitations of the industry are obstacles for further expansion. Performance growth is clearly constrained by the overall market capacity.
The "double attack" market pattern makes it more difficult for TONGSHIFU to achieve breakthrough growth within the existing market. Outside of copper-based products, TONGSHIFU hasn’t found a second growth curve.
TONGSHIFU’s valuation should be lower than Pop Mart/Laopu Gold/Bloks due to the big gap in growth potential/profitability/cashability. However, valuation could be higher than industry average due to leading market position.  


Pre-IPO Hangzhou Tongshifu Cultural and Creative Group - Potential for Future Growth Is Questionable

China

Bloks Group Limited designs toys. The Company develops and manufactures characters toys, assembly toys, and other products. Bloks Group markets its products throughout China.

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Bloks Group (325 HK)

Pre-IPO Bloks Group (PHIP Updates) - Some Points Worth the Attention

As China's largest assembly character toy player, Bloks faces growth ceiling/lagging profitability compared to peers. The key question is how to...

Xinyao (Criss) Wang

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

TOP TOY Intl: Pre-IPO - More than Just Emotional Value

TOP TOY is set for an IPO in Hong Kong, boasting market growth potential, IP strength, a strong distribution network and MINISO's support. We...

Osbert Tang, CFA

TOP TOY IPO: From China To The World — Rapid Growth and Solid Profitability Under MINISO Group

China's TOP TOY set to go public in Hong Kong, challenging Pop Mart with impressive growth in the "blind box" segment and designer toy market.

Andrei Zakharov

Pre-IPO Hangzhou Tongshifu Cultural and Creative Group - Potential for Future Growth Is Questionable

Despite TONGSHIFU's leading market position, market capacity constraints hinder further expansion. The lack of second growth curve makes future...

Xinyao (Criss) Wang

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52-week Range

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Pre-IPO Bloks Group (PHIP Updates) - Some Points Worth the Attention

As ​China's largest assembly character toy player, Bloks faces growth ceiling/lagging profitability compared to peers. The key question is how to...

Xinyao (Criss) Wang

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

TOP TOY Intl: Pre-IPO - More than Just Emotional Value

​TOP TOY is set for an IPO in Hong Kong, boasting market growth potential, IP strength, a strong distribution network and MINISO's support. We...

Osbert Tang, CFA

TOP TOY IPO: From China To The World — Rapid Growth and Solid Profitability Under MINISO Group

​China's TOP TOY set to go public in Hong Kong, challenging Pop Mart with impressive growth in the "blind box" segment and designer toy market.

Andrei Zakharov

Pre-IPO Hangzhou Tongshifu Cultural and Creative Group - Potential for Future Growth Is Questionable

​Despite TONGSHIFU's leading market position, market capacity constraints hinder further expansion. The lack of second growth curve makes future...

Xinyao (Criss) Wang

As China's largest assembly character toy player, Bloks faces growth ceiling/lagging profitability compared to peers. The key question is how to...

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

TOP TOY is set for an IPO in Hong Kong, boasting market growth potential, IP strength, a strong distribution network and MINISO's support. We...

China's TOP TOY set to go public in Hong Kong, challenging Pop Mart with impressive growth in the "blind box" segment and designer toy market.

Despite TONGSHIFU's leading market position, market capacity constraints hinder further expansion. The lack of second growth curve makes future...