Debon Securities: Driven by the explosion of “Nezha 2”, the IP economy is expected to continue to resonate with the downstream sector

The Zhitong Finance App learned that Debon Securities released a research report saying that the movie “The Demon Boy in the Sea” (“Nacha 2”) achieved remarkable results at the box office, driving the popularity of peripheral products, and the influence of high-quality IP was fully demonstrated in the film market and surrounding industries. Currently, high-quality IP content products with rich cores and excellent production are still highly scarce. High-quality IP is far from reaching the ceiling, and it is expected that it will continue to resonate with the downstream sector. Focus on leading enterprises and traditional retailers with rich IP matrices and the ability to create differentiated products to transform into brand retailers.

Incident: As of February 11, 2025, the domestic animated film “The Demon Boy in the Sea” (later “Nacha 2”) surpassed 9 billion dollars in box office (including pre-sale), becoming the first film in Chinese film history to break 9 billion, temporarily ranking 26th in the global movie box office list and 5th in the global animated film box office list. With the help of several popular IPs, according to statistics from the National Film Administration, the 2025 Spring Festival (January 28 to February 4) movies grossed 9.510 billion yuan, and the number of moviegoers was 187 million, making it the highest grossing and highest number of people for the Spring Festival in Chinese film history

The main views of Debon Securities are as follows:

High-quality IP content products with rich cores and excellent production are still highly scarce

The fundamental reason for the huge success of “Nezha 2” is its high-quality content

1) Obtain emotional resonance in different circles: As an animated product, it has high compatibility, allowing minors to see excitement from “My Life Is My Life,” Nacha's entry into heaven, rebellious authority, and extermination of demons, but also emotional projections such as class solidification and personal struggles in the adult world. The Spring Festival program, which is full of “homeland feelings in a big environment”, competes with a differentiated and smooth narrative. Maximizing the collection to meet the spiritual needs of the audience is the root cause of its widespread acclaim;

2) Excellent production gives the audience an excellent movie-watching experience: In addition to the excellent story, “Nacha 2” also has production standards that can represent the highest level of the Chinese film industry: thousands of undersea demons broke out of the chain, and every rope could not wear a model; Nacha finally broke through the heart in an explosive form, and the body left behind was like an anatomical map of human capillaries; the chain thrown by the monster became a crab after unfolding. Excellent special effects further promote narrative expression, and it is easier to further resonate with the audience with visual impact.

The popularity of IP has brought resonance to downstream products, and sales of peripheral products are booming:

1) Trendy Fun Peripherals: Currently, “Nezha 2” has launched various toy peripheral products such as trendy games, figures, figurines, cards, stationery, food toys, badges, cards, publications, and plush products. Related companies include Bubble Mart, Mingchuang Premium, Bandai Namco, Card Games, etc. Take Bubble Mart as an example. The sales volume exceeded 10 million in 8 days of launch. The blind box was sold out, and pre-sale delivery was scheduled until June 15. Representative products include the “Natural Bonds” series blind box (8 models including Lotus Root Powder, Battle Ao Bing), etc., which cost 69 yuan/piece. In addition, Mingchuang Premium, Smart Innovation, and Sonny Sendi have also launched blind box toy products; Card Games, Card Collectors, Jason Entertainment, etc. have launched related collectible card products, and CITIC Publishing has launched related picture book products. Bandai Namco, the leading international trendy game company, also launched Nana and Ao Bing figures under a joint name. The price is 329 yuan/piece, which is relatively high-end.

2) Food and beverage: Including brands such as Mengniu Dairy. Among them, sales of products related to Mengniu Dairy exceeded 5 million yuan.

3) Daily necessities: Mother Rabbit launched Olaf Mothproof Children's Toothpaste (Nacha Co-branded), priced at 39.9 yuan/stick. The 7-day sales volume increased 383% month-on-month, driving the brand's February turnover up 50% year over year; Yuanlong Yatu launched Rongyao Nacha co-branded peripheral products, including “Honor - Nana” mahjong sets, mobile phone back masks, removable pillows, water cup sets, etc. The “Honor - Dana” mahjong kit was sought after by consumers and became popular models, bringing more market influence to the brand.

4) Gold jewels: Nezha's gold bracelet once again attracted attention with the phenomenal popularity of “Nezha 2.” The “Nezha 1” co-branded gold bracelet purchased five years ago. As the price of gold rose from about 400 yuan/gram five years ago to more than 800 yuan/gram, now the price of the bracelet has also doubled. There are still quite a few netizens who want to buy the same model. The gold price has risen plus IP support. The investment value of the co-branded bracelet is highlighted

Investment advice: Currently, China's high-quality IP is far from reaching the ceiling, and it is expected that it will continue to resonate with the downstream sector

1) Focus on leading companies with rich IP matrices and the ability to create differentiated products: Bubble Mart (09992) cooperated with Nacha 2 to launch a blind box in the short term. In the long term, the market response was good. In the long term, it boosted its own IP volume by boosting its own IP volume and further opened up a single IP space; Bruker (00325) seizing market share through rich IP matrix+cost performance competitiveness; focus on the transformation of traditional stationery and toy companies such as Guangbo (002103.SZ), Chenguang (603899.SH), Chuangyuan Shares (300703.SZ), etc.;

2) Focus on the transformation of traditional retailers into brand retailers: focus on recommending premium products (09896), embrace the wave of interested consumption, and gradually transform brand retailers; focus on the scarcity Bandai Gundam base of Baby-Friendly Rooms (603214.SH); and focus on the economic transformation of Bailian (600827.SH) millet.

Risk warning: Competition in the industry is intensifying, demand for terminals is weak, IP expansion falls short of expectations, etc.