Jinwu Financial News | According to the Western Securities Research Report, Bubble Mart (09992) is recovering steadily domestically and offline, the year-on-year growth rate of online is improving, and the Douyin channel is growing rapidly. 1Q24's overall domestic market revenue increased 20%-25% year over year, with retail stores growing 20%-25% year on year, robot stores growing at a fast pace of offline recovery; online Douyin flagship stores increased 95%-100% year over year, and the year-on-year growth rate of box extractors and Tmall channels has all been corrected. Among them, Bubble Mart boxers increased 0%-5% year on year, and Tmall flagship stores increased 0% to 5% year on year. The bank believes that the steady recovery of offline consumption scenarios will help feed back online traffic, and online performance is expected to continue to recover.
1Q24 performed well in China's Hong Kong, Macao and Taiwan regions and overseas, with revenue growth of 245%-250% year-on-year. Southeast Asia is the fastest growing region for the company overseas. In February of this year, the third store in Thailand opened, with sales exceeding 5 million on the first day, setting a new single-day sales record for Bubble Mart's global stores. Since April, many Thai stars/public figures have brought LABUBU vinyl products, creating a circle-breaking effect and expanding IP influence to help the company open up the local market. This year, the company plans to enter countries such as Indonesia, Vietnam, and the Philippines, continue to expand its Southeast Asia footprint, and open stores in more world-famous neighborhoods around the world. At the same time, we have seen that the popularity of overseas markets is also feeding back at home, and sales performance of LABUBU's new blind box products has picked up markedly.
IP incubation and operation are the company's core competitiveness. The product launch plan is clear throughout the year. At the same time, the company is actively incubating new categories. It will increase investment in the plush category this year, and plans to launch building block products in June. In addition to this, the other three categories are being planned, and there are many growth grippers. Looking ahead to the whole year, we expect domestic players' consumer enthusiasm to continue to pick up and continue to be optimistic about overseas markets under the catalyst of the launch of the company's high-quality design products, the supply of multiple categories, the launch of new business formats such as park games, the development of IP licensing, and the holding of various trendy game fairs in the industry.
The bank estimates that the company's net profit for 24-26 will be 1,502/18.93/2.06 billion yuan, YoY +38.8%/26.0%/21.8%, maintaining a “buy” rating.