HK Stock Market Move | BLOKS (00325) rises over 6% again; first-half revenue and profit increase by over 30%; first time declaring an interim dividend.

BLOKS (00325) has risen over 6% again, with a cumulative increase of more than 50% this month. As of the time of writing, it is up 5.57%, priced at HKD 77.7, with a trading volume of HKD 370 million. In terms of news, BLOKS reported its interim results, achieving revenue of 1.776 billion yuan in the first half of the year, a year-on-year increase of 32.7%, with a net profit attributable to shareholders of 387 million yuan, up 30.5% year-on-year; the adjusted net profit was 401 million yuan, an increase of 25.1% year-on-year. The overall performance growth is excellent, mainly benefiting from the continuous diversification of its IP matrix, the advancement of global market growth strategies, and the successful expansion of new product categories such as building block vehicles. In addition, the company plans to distribute an interim dividend of 32.47 Hong Kong cents, the first dividend distribution since its listing. Citi released a research report stating that BLOKS' interim results are robust, believing that this will boost market confidence in its annual revenue growth target of approximately 30%. The group's destocking measures since the second half of 2025 have shown results, with current channel inventory at a healthier level. Channel expansion has shifted from quantity to quality, focusing on upgrading and renovating POS, and targeting youth-oriented trend toy stores and high-efficiency stores. Citi slightly adjusted its profit forecast, mainly reflecting the accelerated growth of overseas revenue and improved operational efficiency driving margin enhancement.