The wealth code behind the fad: bubble Mart IPO valuation or more than $6 billion

category:Finance
 The wealth code behind the fad: bubble Mart IPO valuation or more than $6 billion


For the valuation of the company, paopaopao Ma te told the Securities Daily that everything is subject to the announcement of the Hong Kong stock exchange. However, a senior investment banker believes that the valuation is in line with the current capital market expectations of bubble Mart.

The first three quarters

27476 blind boxes were sold

In the prospectus, bubble Mart called itself a company promoting the culture of trendy toys, but in real life, many young people still regard it as a synonym for blind box.

In the mouth of senior Fan Li Tian, the doll in the blind box is called baby. Li Tian is a young teacher, but her love for baby is rarely known. We seldom talk about blind boxes in the office. It seems that it is a shame for adults to be obsessed with toys. As a matter of fact, Li Tian will go offline to buy new products every time. Most of the time, she chooses end box. She told reporters that the end box refers to buying all the new products at one time. There are usually 12 blind boxes in a large box, and occasionally there is a hidden model. Although the probability of getting hidden items is not high, she still wants to collect each set of blind boxes.

After hearing the news that paopaopao Mart was about to be listed, Li Tian was surprised to ask, did we buy it for listing?

In the first three quarters of this year, the sales volume of bubble Mart blind box products was 27476, with a year-on-year increase of 70.5%; the average price of blind box products was 46 yuan, a year-on-year decrease of 6.1%.

Sales channels. As of June 30, 2020, the sales and distribution networks of bubble mart are mainly divided into five categories: one is 136 retail stores mainly located in the mainstream business districts of 33 first and second tier cities in China; the second is 1001 innovative robot stores located in 62 cities, which can provide interactive and interesting shopping experience; the third is online channels such as tmall flagship store, bubble box extractor and Paqu; and the fourth is The fifth is wholesale channels, including 25 domestic distributors and 22 foreign dealers.

Among them, the online platform is one of the fastest growing channels, with the revenue share of 9.4%, 20.0% and 32.0% from 2017 to 2019, and further increased to 40.9% in the first half of 2020.

It is worth noting that in the first half of 2020, the revenue of bubble mart tmall flagship store was 147 million yuan, an increase of 122.2% compared with the same period in 2019; while the revenue of bubble box extractor small program was 162 million yuan, with a year-on-year increase of 72.3%. In the double 11 activities of tmall in 2019 and 2020, the sales volume of bubble mart tmall flagship store ranked first in the category of model game of tmall.

456 million yuan

Bubble marts revenue channel is not limited to selling blind boxes.

From the financial situation, from 2017 to 2019, the revenue of bubble Mart was 158 million yuan, 515 million yuan and 1.683 billion yuan respectively, with a compound annual growth rate of 226.3%; the net profit was 1.569 million yuan, 99.521 million yuan and 451 million yuan, with the net profit rate of 1.0%, 19.3% and 26.8% respectively; the gross profit rate was 47.6%, 57.9% and 64.8% respectively.

In the first three quarters of this year, the revenue of bubble Mart was 1.544 billion yuan, an increase of 49.3% year-on-year; the gross profit rate was 64%, which was 63.7% in the same period of last year.

As of June 30, 2020, bubble Mart has operated 93 IP, including 12 self owned IP, 25 exclusive IP and 56 non exclusive IP. Among them, bubble Mart launched 16 new IP in the first half of the year, and is expected to launch 14 or more IP in the second half of the year. In 2019, the revenue generated by the top four IP will exceed 100 million yuan.

In terms of product composition, bubble Mart brand products are divided into proprietary IP, exclusive IP and non exclusive IP. Among them, proprietary IP includes Molly, dimoo, Bobo & coco, Yuki, and exclusive IP includes pucky, themonsters and satyrory.

Among them, Molly is the core IP resource and the earliest successful case of bubble marts commercialization. In 2016, bubble Mart launched its first independent fashion toy product Molly constellation blind box series, which attracted a large number of fans to buy. In 2019, the bubble Mart brand with Molly image alone will generate revenue of 456 million yuan, with a year-on-year increase of 113%.

Is the blind box mode difficult to replicate?

According to frost Sullivans report, bubble mart is the largest and fastest growing fashion toy company in China based on its revenue in 2019 and its revenue growth rate from 2017 to 2019. Among them, according to the retail sales in 2019, bubble marts share in Chinas fashion toy market is 8.5%.

In user portraits, bubble marts fan base mainly covers people aged 15 to 35, who have high energy consumption and are keen to share and display. According to Shenwan Hongyuan Research Report, it is estimated that there are 3 million to 5 million people (mainly concentrated in the 18-35-year-old group) in China, and the main consumer force is generation Z (people born between 1995 and 2009).

It can be said that the market potential of domestic blind box game has emerged, but in the whole industry, does bubble Mart have core competitiveness?

Wang Chunxia, CEO of laiga think tank, told reporters that paopaopao Matt is the only closed-loop enterprise that has formed the whole industrial chain. Upstream has its own group of designers and is constantly signing new designers. In midstream manufacturing and operation, chaoplay generally adapts to OEM factories rather than self built factories. Large volume bubble mart is the best choice for OEM factories. Downstream channel, bubble Mart offline stores + robot stores + online direct stores mode is almost the only one in the industry.

Blind boxes are not just toys, they are not just consumer goods. Bubble mart is about to go public, and may usher in another industry classification debate. If bubble mart is just a toy, it is made in light industry; however, with its own brand and channel, it will be more like a new retail consumer; however, todays bubble mart is not selling things, the material object is just the carrier, and the consumption is spiritual pleasure, so it is more like a content company. Wang Chunxia further said.