Recently, the millet economy has become a new source of investment.

Today, the IP economy sector continues to lead the A-share market.

As of press release, Guangbo Co., Ltd. has 6 boards for 8 days, Shifeng Culture 5 consecutive boards, Aofei Entertainment and Huali Technology 2 consecutive boards, and Yuanlong Yatu 5 days 3 boards.

Chuangyuan Co., Ltd. and Deyi Culture and Innovation 20CM rose to a halt. On the first board of Hengdian Film and Television, Xinghui Entertainment rose more than 12%, Chenguang shares rose 9.9%, and Huace Film and Television rose more than 5%.

The Hong Kong stock Bubble Mart fell 1.71% today. The latest report was HK$86.2 per share, with a total market capitalization of HK$115.762 billion, with a cumulative increase of over 332% since this year.

Earlier in early October, CITIC Construction Investment analyst Chen Guo proposed “effervescent assets.”

He said that “Effervescent Assets” represents a core company in the field of new consumer services and emotional consumption with low correlation to the old economic cycle, international operation capabilities, and that it will be “the first tier of China's core assets that are being reshaped.”

However, it should be noted that this wave of millet economic investment began in mid-September, and some individual stocks have already risen quite a bit in the early stages, so we need to be careful to catch up.

Since September 18, Shifeng Culture has accumulated a cumulative increase of more than 168%, a cumulative increase of more than 133% for Guangbo Co., Ltd., and a cumulative increase of nearly 75% for Bubble Mart.

Due to recent large increases, Guangbo Co., Ltd. and Shifeng Culture issued two consecutive stock price change announcements, reminding investors to pay attention to secondary market trading risks, make prudent decisions, and invest rationally.

IP and channels are at the core

Millet generally refers to peripheral products that are copyrighted works such as comics, animations, games, idols, and special effects. They are spiritual consumer goods, bringing consumers value such as self-satisfaction, collection, social networking, and trading.

Looking at the industrial chain, the upstream of the millet economy is the content production process, which undertakes animation, comics, game production, etc., represented by Miha Tour, NetEase, and Aofei Entertainment;

Midstream is the operating company and is responsible for content dissemination. The segmentation work includes IP agency, game distribution, etc., and Bilibili and Guangbo Co., Ltd. are deeply involved;

Downstream is product sales, represented by Bubble Mart, Mingchuang Premium, etc.

Among them, IP and channels are the core. Most of them are mainly two-dimensional IP licensing, and the competitive advantage is mainly in channels.

In terms of market size, according to data from the Forward-looking Industry Research Institute, the scale of China's quadratic industry grew from 18.9 billion yuan to 221.9 billion yuan in 2016-2023, with a compound growth rate of 42%.

Among them, the scale of the peripheral derivatives industry grew from 5.3 billion yuan to 102.3 billion yuan, with a compound growth rate of 53%.

Looking ahead, the scale of the two-dimensional industry is expected to grow from 221.9 billion yuan to 590 billion yuan in 2023-2029, with a compound growth rate of 18%.

Currently, the derivative market concentration is low in the quadratic area. It has the characteristics of weak bargaining power of suppliers, strong consumer bargaining power, large number of existing competitors, low market concentration, high profits, and low product technical threshold.

As a result, there are many potential entrants, the market competition is fierce, and more players may enter the circuitry surrounding the two-dimensional area in the future.

In terms of investment, Shen Wan Hongyuan suggested seizing relevant investment opportunities in the context of “happy oneself” consumption/millet economy, focusing on Bubble Mart, which has a strong IP reserve, and actively laying out the card circuit Yao Ji Technology, Guangbo shares with mature IP products and supply chains and strong channel capabilities, and focus on Reading Group and Alibaba Pictures.

Debon Securities pointed out that the “millet economy” is based on the IP licensing and operation capabilities behind it, with supply chain capabilities as a guarantee, and channels as the key to reaching consumers. It is recommended to focus on leading targets with the ability of the entire industry chain and rapid dissemination of its IP.

1) Guangbo Co., Ltd.: The company is deeply involved in the field of culture and creativity, and has joined forces with many well-known domestic and foreign IPs to develop a series of unique cultural and creative stationery and two-dimensional peripherals.
2) Aofei Entertainment: Two-dimensional IP leader, with multiple animation IPs such as “Bala La Little Magic” and “The Goat and the Grey Wolf”. It cooperates with famous corporate brands around classic IPs to create youth-oriented content and brands.
3) Chenguang Co., Ltd.: Many of its brands are involved in millet, producing brands such as “Strange but Fun”.

Zheshang Securities believes that the “millet economy” is currently at the stage of channel competition, and companies or brands with extensive retail channels are expected to enjoy the industry beta in the early stages. In the medium to long term, core competitiveness will return to product development and product selection capabilities, and ultimately to differentiated product supply.

Guangbo Co., Ltd. has popular IP reserves+manufacturing and R&D capabilities+marketing promotion capabilities, and a new star in the millet economy is rising.