Another trendy toy is hitting the Hong Kong stock market IPO! Will 52TOYS become the next POP MART?

As POP MART's market value reaches a new high in the Hong Kong stock market, another Chinese trendy toy company is about to land on the Hong Kong Stock Exchange.

Recently, 52TOYS, founded in 2015, submitted its IPO prospectus to the Hong Kong Stock Exchange, aiming for a main board listing, becoming the third mainland toy manufacturer to be listed in Hong Kong after POP MART and Bloks.

Currently, 52TOYS has established long-term partnerships with dozens of globally renowned brands, including Disney's Toy Story series, and has also developed its own intellectual property.

As of December 31, 2024, 52TOYS owns over 100 proprietary and licensed IPs, including 35 proprietary IPs and 80 licensed IPs. According to ZhiShi Consulting, the company's Crayon Shin-chan and Tom and Jerry product series ranked first in China among similar IP products in 2024.

Building a "Central IP" Moat, Sales Network Reaches 4.7 Million Members

According to the prospectus, 52TOYS's core competitiveness lies in its unique "Central IP" strategy.

The company offers various forms of IP toys, including static dolls, movable dolls, wind-up toys, transforming mechas, assembly toys, plush toys, and derivative peripherals.

This multi-category operational capability is relatively rare in the IP toy industry, with the company launching over 500 new SKUs annually, and having nearly 2,800 SKUs available for sale as of the latest feasible date. According to ZhiShi Consulting data, 52TOYS ranks second among multi-category IP toy companies in China and third among IP toy companies in China.

Relying on a continuously growing IP matrix and product line, financial data shows that the company's revenue grew from 463 million RMB in 2022 to 630 million RMB in 2024, with a compound annual growth rate of 16.7%.

Among these, licensed IP product sales accounted for 64.5%, proprietary IP products accounted for 24.5%, and externally sourced products accounted for 10.8%. In terms of sales channels, distributor sales accounted for 66.8%, direct sales accounted for 30.9%, and consignment sales accounted for 2.1%.

It is noteworthy that, similar to POP MART, 52TOYS's overseas market revenue has also experienced explosive growth in recent years, soaring from 35 million RMB in 2022 to 147 million RMB in 2024, with a compound annual growth rate exceeding 100%.

The ability to operate across the entire industry chain and a well-established sales network layout also provide 52TOYS with a competitive advantage.

The prospectus shows that it is one of the few leading Chinese companies in the industry that has achieved full industry chain operations, covering all aspects from IP incubation and development, product design, flexible supply chain to comprehensive sales channels. As of December 31, 2024, the company has 85 internal designers and collaborates with over 40 global artists In addition, 52TOYS has established a "online + offline" and "direct sales + distribution" sales network. As of December 31, 2024, the company has 336 distributors in China and 90 overseas distributors, with more than 20,000 terminal outlets. As of the last feasible date, it has accumulated over 4.7 million registered members.

Wanda Film's High-profile Investment Sparks Imagination

A week before submitting its prospectus, Wanda Film announced its investment in 52TOYS, causing the latter's valuation to soar to over 4.2 billion yuan, which sparked heated discussions in the market.

The announcement shows that Wanda Film's subsidiary, Beijing Ying Shiguang E-commerce Co., Ltd., plans to invest a total of 144 million yuan through share subscriptions and new registered capital with its affiliate, Shanghai Ruyi Xingchen Enterprise Management Co., Ltd. After the transaction is completed, the two companies will hold a combined 7% stake in Lezi Tiancheng (the parent company of 52TOYS).

Wanda Film emphasized that they will engage in strategic cooperation with 52TOYS, with both parties collaborating in the development and sale of IP toy products, marketing, and other related fields, leveraging their respective advantages to achieve mutual benefits.

Analysis points out that in the next phase, 52TOYS may focus on IP incubation and expanding the boundaries of IP toys as a new development priority, while Wanda Film's investment can provide limitless imaginative possibilities.

Overseas Sales Doubled in the First Half of the Year, Betting on Overseas Prospects

Similar to POP MART, 52TOYS is also betting its future growth on the overseas market.

Two years after its establishment, 52TOYS announced its entry into the Japanese market, followed by the U.S. market in 2018; in 2022, it laid out overseas e-commerce channels; starting in 2023, it has successively established authorized brand stores in Thailand, Malaysia, North America, Singapore, Indonesia, and other locations.

Currently, 52TOYS has successfully entered key markets such as Southeast Asia, Japan, South Korea, and North America, with 16 overseas authorized brand stores. It is expected that the Southeast Asian IP toy market will grow from 18.1 billion yuan in 2024 to 45.1 billion yuan in 2029, with a compound annual growth rate of 20%.

The company revealed that in the first half of this year, 52TOYS's overseas sales increased by 250% year-on-year. Among them, sales in North America quadrupled compared to last year; sales in Japan were three times that of the same period last year; and sales in Southeast Asia increased tenfold compared to last year.

The prospectus shows that compared to mature markets, the top three companies in the Japanese and U.S. IP toy markets account for 72.2% and 49.3% of the market share, respectively, while the top ten companies in China only account for 46.1%, indicating significant room for industry consolidation.

52TOYS plans to open more than 100 brand stores in China and establish over 100 self-operated brand stores overseas in the future, fully benefiting from the industry's development dividends. The prospectus states that with its market position, product innovation capabilities, and global layout, it is expected to maintain a leading advantage in the wave of consolidation in the Chinese IP toy market