Temasek-backed, valued at over HKD 10 billion, Ye Guofu makes a push for his second IPO | IPO Express

TOP TOY International Group Limited, a core business unit of Miniso, has officially submitted its prospectus for a main board listing on the Hong Kong Stock Exchange, co-sponsored by JPMorgan, UBS Group, and CITIC Securities. The trendy toy retailer demonstrated robust financial performance, reporting 2024 revenue of RMB 1.909 billion (67.7% CAGR since 2022) and an adjusted net profit of RMB 294 million, with H1 2025 revenue at RMB 1.36 billion. This growth is underpinned by an expanding global store network and a strategic pivot towards higher-margin self-developed and licensed IPs, which has significantly improved gross margins. Notably, Temasek holds a 3.2% stake as the largest external shareholder, following a Series A round that valued TOP TOY at $1.3 billion, highlighting investor confidence in its continued expansion within the burgeoning trendy toy market.

Analysis

TOP TOY International Group, a Miniso (MNSO) subsidiary, has filed for a main board IPO in Hong Kong, signaling a significant milestone in its rapid expansion. The company's financial trajectory is compelling, with revenue demonstrating a 67.7% compound annual growth rate from 2022 to 2024, reaching RMB 1.909 billion. This momentum continued into the first half of 2025 with revenue of RMB 1.36 billion, a 58.5% year-over-year increase. Profitability has solidified, turning from a net loss of RMB 38 million in 2022 to an adjusted net profit of RMB 294 million in 2024. A key driver of this performance is the strategic pivot to a 'three-dimensional IP matrix,' which has boosted the contribution from higher-margin self-developed and licensed IP products to approximately 50% of revenue and lifted gross margins from 19.9% in 2022 to over 32% in H1 2025. This growth is further supported by an aggressive physical retail expansion, with plans to reach nearly 400 domestic stores by year-end and a long-term goal of 1,000 global locations. The pre-IPO Series A financing, which included a $40 million investment from Temasek, valued the company at $1.3 billion and provides significant institutional validation of its business model and growth outlook within the burgeoning trendy toy sector.

Key Decisions for Investors

• Investors should evaluate the IPO valuation against the company's robust 67.7% revenue CAGR and significant margin expansion, viewing Temasek's pre-IPO stake at a $1.3 billion valuation as a strong institutional endorsement.
• It is crucial to monitor the relationship between growth and profitability, as H1 2025 adjusted net profit growth of 26.68% lagged revenue growth of 58.5%, potentially indicating rising costs associated with its aggressive international and domestic store expansion.
• The long-term thesis hinges on the success of its IP strategy; investors must track the ability to scale proprietary IPs and maintain favorable terms for licensed IPs, as this is the primary defense against competitors like Pop Mart and the key to sustaining gross margins above 30%.
• For investors in parent company Miniso (MNSO), this IPO represents a potential value-unlocking event that will crystallize the worth of its trendy toy division and create a more focused, independently capitalized entity.