Jay Chou concept stocks surged more than 50% in two days! Can we invest in Hong Kong stocks again?

STARPLUS LEGEND, a concept stock related to Jay Chou, has experienced a surge of over 50% in stock price in the past two days. STARPLUS LEGEND was listed on the Hong Kong Stock Exchange on July 13th, and its stock price temporarily declined in the three days prior to listing.

According to the prospectus, the company's business mainly includes two aspects: new retail and IP creation and operation. The IP creation and operation business serves as one of the marketing tools to promote its new retail products.

The prospectus shows that the company's total revenue from 2019 to 2022 was RMB 86.6 million, RMB 456.9 million, RMB 365.3 million, and RMB 344.2 million, respectively, with a compound annual growth rate of approximately 58.4%. During the same period, the net profits were RMB 22.7 million, RMB 75.6 million, RMB 42.9 million, and RMB 64.9 million, respectively, with a compound annual growth rate of approximately 41.9%.

Multiple Positive Factors Driving Growth

While deeply integrating with Jay Chou, the company is also expanding its artist resource pool.

STARPLUS LEGEND has established a talent agency called Talent Planet (Hong Kong) Limited with Jay Chou's friend, Liu Genghong. They hold 70% and 30% of the shares, respectively. They also cooperate with Liu Genghong and his wife, Wang Peiyun (Vivi), to develop them into fitness super IPs. They have signed cooperation agreements with Yu Chengqing and other artists, including Zhang Jie, Liang Xinyi, and Zhan Yuhao, who are members of the first generation of the Nan Quan Mama group.

In addition, according to Damai platform, nearly 130,000 tickets were sold for the Tianjin concert, with a total of four rounds of ticket sales, and over 5.2 million people marked "want to watch". The topic of "Two consecutive tickets for Jay Chou's concert priced at RMB 150,000" soared to the top of the hot search.

Guonong Securities pointed out that they are optimistic about the commercial model of "celebrity IP + live streaming for monetization". In the future, celebrities will focus on developing super celebrity IPs and online live streaming for product sales, with a promising outlook.

Good Overall Performance of New Stocks in the Hong Kong Stock Market

It is worth noting that although the enthusiasm for new stock subscriptions in the Hong Kong stock market has cooled down, the performance of new stocks is still outstanding.

For example, Limentechnology rose by 400%, and Pharmacist Assistant rose by over 90%.

This is due to the gradual recovery of the fundamentals in the entertainment industry.

Qiu Liting, Managing Partner of PwC China Mainland and Hong Kong Media Industry, stated that 2023 is an important turning point for the entertainment and media industry. It is expected that after 2023, the industry will gradually recover to the growth rate before the pandemic.