Pop-toy maker Here Group Q4 revenue rises 94% on strong new IP sales

Overview

• China pop toy maker's fiscal Q4 revenue rose 94% yr/yr but fell 22% sequentially

• Company reported wider net loss, including goodwill impairment amid lower-than-expected performance

• Here Group launched $20 mln share buyback, repurchased $0.7 mln in Q4; board member resigned

Outlook

• Company says market environment remains challenging and expects to optimize cost structure

• Here Group aims to improve operating efficiency and strengthen IP and product capabilities

• Company expects efforts to support sustainable growth and long-term shareholder value

Result Drivers

• LOWER CHANNEL SALES - Co said sequential revenue decline was mainly due to lower channel sales amid challenging market conditions

• NEW IP LAUNCHES - Year-over-year revenue growth was driven by higher sales across existing and newly launched IP product lines

• GOODWILL IMPAIRMENT - Co recorded goodwill impairment reflecting lower-than-anticipated performance amid macroeconomic headwinds

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the toys & children's products peer group is "buy."

• Wall Street's median 12-month price target for Here Group Ltd is $5.50, about 197.3% above its September 21 closing price of $1.85

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)