Tracking the concept of Hong Kong stocks| The product performance of AI light industry integration is worth looking forward to. The toy industry chain is the first to realize profit reflection (with concept stocks)

After this year's Spring Festival, the toy market is quietly ushering in a trend of intelligence, with AI toys emerging continuously. AI toys, integrated with the DeepSeek large model, have injected unprecedented interactive experiences into the toy industry. Industry insiders point out that AI toys can not only understand children's language but also learn and adapt intelligently based on responses, thus providing personalized interactive services. Compared to traditional toys, AI toys are selling like hotcakes on major e-commerce platforms. Data from one platform shows that in January this year, AI technology drove a sixfold increase in product sales. Related data shows that the AI toy market size has reached $18.1 billion by 2024, with the global market size in this field expected to grow to $60 billion by 2033. Guotai Junan points out that the product performance under the fusion of AI and light industry is worth looking forward to. In terms of AI toys, products are adding natural language processing and machine learning technologies on top of voice interaction functions, engaging with users in a multidimensional way through human-like, animal-like, or IP-like interfaces, achieving high interactivity, educational value, and emotional value. China Galaxy Securities released a research report stating that AI + consumption has become the main theme of technological consumption, and embodied intelligence has opened the era of anthropomorphism for all things. Progress has been made in the combination of AI + toys. In 2024, the Transformers toy launched by Lesen achieved great success in the US market with outstanding embodied intelligence experience. In addition, Apple is developing an AI companion table lamp based on the Pixar animation "Luxo Jr." Since toys have a high tolerance rate, this field is more suitable to become the vanguard of embodied intelligent consumer goods promotion. Hong Kong stock related industry chain of AI + toys: BLOKS (00325): BLOKS is a leader in role-playing toys in China, focusing on providing consumers with a wide range of high-quality and affordable role-playing toy products and has seen rapid growth. The market size of role-playing toys in China is expected to grow from 5.8 billion yuan in 2023 to 32.5 billion yuan in 2028, with a CAGR of 41.3%. It is expected that by 2025, role-playing toys will surpass building toys to become the largest sub-segment of role-playing toys. POP MART (09992): In the fourth quarter of last year, POP MART's sales in the Chinese market accelerated from the previous quarter, with overseas markets continuing to achieve rapid growth. Citigroup previously stated that POP MART is China's largest pop toy company, with a strong ability to incubate and monetize IPs, as well as a growing global footprint and popularity. With its diversified IP roles and content-driven marketing strategy, the company seems ready to capture emerging "spiritual consumption" among young consumers. Citigroup believes that the commercialization of POP MART's IP should extend beyond pop toys. Pop toys are an affordable entertainment choice for consumers and are one of the consumer goods categories the bank is most bullish on. MNSO (09896): According to the company's announcement at the brand upgrade achievement release event, the company has cooperated with over 150 global IPs, sold over 800 million IP-related products, accumulated revenue of 10 billion, and launched over 10,000 new IP joint products every year. Currently, domestic IP products account for close to 30%, while overseas IP products account for over 40%. At the same time, the company plans for IP products to account for no less than 50% by 2028, making Miniso the world's number one IP design and retail group. VTECH HOLDINGS (00303): VTECH HOLDINGS is one of the world's largest toy manufacturers. The chairman of the company stated 23 years ago that they are "closely monitoring" the potential of using generative AI in products.