A research report indicates that B.DUCK SEMK (02250) has achieved significant performance growth, with newly launched self-operated city parks contributing new revenue growth drivers. The company's overseas business expansion is progressing smoothly, and acquisitions of trendy toy companies are further enhancing its IP portfolio. Both organic growth and external expansion are driving sustained positive development for the company.

Based on the 2025 interim results announcement, analysts forecast the company's EPS for 2025-2027 to be RMB 0.01/0.04/0.13 respectively. At current stock price, the corresponding PE ratios are 119/30/10 times. The company receives an inaugural "Buy" investment rating.

Key Points:

Event: On August 29, 2025, B.DUCK SEMK released its 2025 interim results announcement. H1 2025 total revenue reached RMB 82 million (up 37% YoY), with attributable net loss of RMB 11 million (compared to RMB 17 million loss in H1 2024), and adjusted net loss of RMB 9 million (compared to RMB 14 million loss in H1 2024).

Significant Performance Improvement with M&A Layout in Trendy Toy Sector

H1 2025 segment gross margin increased by 1 percentage point YoY to 55.50%. Promotional costs as a percentage of revenue increased by 2 percentage points to 14.73%, primarily due to the company's new trendy toy e-commerce business and higher initial promotional costs for new e-commerce platform entries. Employee benefit expenses as a percentage of revenue decreased by 5 percentage points to 47.66%, mainly due to economies of scale. Attributable net loss margin and adjusted net loss margin narrowed by 15 and 12 percentage points YoY to 13.05% and 10.47% respectively, showing significant profit improvement.

On August 29, the company announced plans to acquire approximately 27.74% of trendy toy company HIDDEN WOOO through RMB 14 million in cash and RMB 24 million in shares, while providing approximately RMB 10 million in convertible loans. Upon completion of the acquisition and conversion, the company will hold 51% of HIDDEN WOOO's shares. This will provide HIDDEN WOOO with ample funding for overseas business expansion, improve the company's IP portfolio, expand into the trendy toy market, and directly enhance company performance through financial consolidation.

Full Business Recovery with Self-Operated Projects Contributing Incremental Growth

By business segment, H1 2025 e-commerce and other business revenue increased 31% YoY to RMB 44 million, mainly due to increased e-commerce platform promotional efforts and expansion to other e-commerce platforms in China and Southeast Asia. Character licensing business revenue increased 46% YoY to RMB 38 million, with merchandise licensing, experiential entertainment licensing, and design consulting service fees increasing 1%, 560%, and 48% YoY to RMB 18 million, RMB 10 million, and RMB 11 million respectively. The number of licensees increased by a net 47 to 577 companies compared to the beginning of the year, mainly due to the company launching several self-operated experiential entertainment projects in the first half, generating approximately RMB 4 million in ticket revenue.

Looking ahead, the company will further expand its self-operated experiential entertainment project scale. Ticket revenue combined with in-store IP product sales is expected to form a new growth driver.

Solid Mainland Foundation with Accelerated Overseas Expansion

By region, H1 2025 revenue from mainland China, Hong Kong, Southeast Asia and Taiwan, and others was RMB 76 million, RMB 1 million, RMB 4 million, and RMB 1 million respectively, with mainland China continuing to contribute the largest revenue share. Since 2022, the company has launched overseas e-commerce operations in Thailand, Indonesia, and the United States, operating e-commerce stores on platforms including Lazada, TikTok, and Amazon. With accelerated business expansion, Southeast Asia and Taiwan regions achieved high growth. The United States is currently one of the company's key focus areas in the short term. Overseas e-commerce business is still in its growth stage with considerable future potential.

Risk Factors: Macroeconomic downturn risk, intensified industry competition risk, new product promotion falling short of expectations, market expansion falling short of expectations.