Huayuan Securities released a research report stating that STARPLUS LEGEND (06683) is dedicated to integrating the emotional value of IP into diversified physical scenarios and innovative products, creating tangible and perceptible happiness experiences for users. Through a series of strategic initiatives, the company is transitioning from a traditional "IP creator and operator" to a "disseminator of happiness." This is the first coverage initiated, with an "Add" rating.
The first stage involves the rapidly growing STARPLUS LEGEND, building capabilities over time. 1) Development of the "Mr. Chou" IP: The "Mr. Chou" IP, a cartoon-style avatar based on Jay Chou, was co-developed by the company and JVR Music. The company expanded the IP's influence by producing the reality show series "J Style Tour." Currently, the official "Mr. Chou" account on Kuaishou has amassed over 48 million followers. 2) Development of the Liu Genghong IP: In 2021, the company incubated the Liu Genghong IP. In 2022, the operational team capitalized on the rapid growth in home fitness demand during the pandemic. Moving beyond the traditional artist management model of brand events, advertising endorsements, and show performances, they achieved a breakthrough by creating the super-head fitness IP "Coach Liu," extending into new businesses like e-commerce livestreaming, short video customization, and live-streaming collaborations. The follower count on Liu Genghong's Douyin account increased tenfold from April to May 2022, adding nearly 60 million new followers. 3) Development of new consumer goods: In April 2019, the company launched its core product, Moringa Coffee, achieving a market breakthrough by deeply associating it with the Jay Chou IP. The popularity of "J Style Tour" in 2020 boosted Moringa Coffee sales, with second-quarter 2020 sales reaching 550,000 boxes and revenue hitting 333 million yuan, a year-on-year increase of 363%.
The next stage is the path forward for STARPLUS LEGEND. 1) Investment in Galaxy, opening channels for cooperation with international superstars. Through its industry fund, the company subscribed for up to 7% of the issued share capital of Galaxy Corporation, a well-known South Korean artist agency representing globally influential artists like G-Dragon. 2) Investment in the Bird's Nest, securing top-tier venue resources and creating opportunities for cooperation with more stars. The company announced the acquisition of a 1.17% equity stake in the National Stadium Company Limited (the operator of the Bird's Nest), making it currently the only private enterprise shareholder. STARPLUS LEGEND is expected to leverage its mature IP operational experience to deeply participate in the IP derivative business for events held at the Bird's Nest. 3) Partnership with Unitree Robotics, promoting the IP-ification and commercial application of robots. The company's cooperation with Unitree Technology, a leading domestic robotics company, continues to deepen. The two parties have established a 50/50 joint venture focused on the development, operation, and sales of consumer-grade IP robots and derivatives. Currently, the company has secured orders for 6,000 units, amounting to over 120 million yuan.
Through a series of strategic layouts, the company is transitioning from a traditional "IP creator and operator" to a "disseminator of happiness." It is committed to integrating the emotional value of IP into diverse physical scenarios and innovative products, creating accessible and perceptible happiness experiences for users. In self-operated IP derivatives, STARPLUS LEGEND deeply cultivates core IPs like "Mr. Chou," developing a self-operated product matrix covering categories such as trendy toys and apparel, transforming fans' emotional resonance into direct consumption experiences. In scenario expansion, the company aims to achieve deep integration of IP and scenarios through its strategic investment in the Bird's Nest, opening a window for cooperation with more superstars. In the field of technological integration, the company partnered with Unitree Technology to launch the "Star Dog" quadruped robot; these companion-focused, IP-based robots enable emotional connections that transcend the virtual and real worlds.
The report believes the company has successfully infused the emotional value of IP into multiple touchpoints, ranging from offline physical spaces to online interactions, and from cultural experiences to tech products. This transforms fans' affection for the IP into tangible, participatory, and shareable happiness experiences within specific contexts. The company's future core competitiveness will increasingly lie in its ability to provide comprehensive happiness perception.
Earnings Forecast and Rating: With IP at the core, monetization through consumer products, and omni-channel operations, the report forecasts the company's total operating revenue for 2025-2027 to be 795 million yuan, 1.113 billion yuan, and 1.553 billion yuan, respectively, representing year-on-year growth rates of 36.2%, 40.0%, and 39.5%. Based on the stock price on December 24, 2025, the corresponding P/E ratios are 58x, 41x, and 31x, respectively. The company is transitioning through a series of strategic initiatives from a traditional "IP creator and operator" to a "disseminator of happiness." This is the first coverage initiated, with an "Add" rating.
Risk warnings: High dependency on specific IPs risk; intensifying market competition risk; changes in industry regulatory policies risk.
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