HK Stock Market Move | BLOKS (00325) rose nearly 8%, with a 30% year-on-year increase in net profit for the interim period, and for the first time since its listing, it has distributed dividends.

BLOKS (00325) rose nearly 20% yesterday and is up nearly 8% again in todays early trading. As of the time of publication, it has risen 7.11% to HKD 76.05, with a transaction volume of HKD 39.5759 million. In terms of news, BLOKS announced its performance for the first half of the year, reporting revenue of 1.78 billion yuan, a year-on-year increase of 32.7%; adjusted net profit of 401 million yuan, a year-on-year increase of 25.1%; and net profit of 387 million yuan, a year-on-year increase of 30.5%. The company plans to distribute an interim dividend of 32.47 Hong Kong cents, marking the first dividend payout since its listing. Huatai pointed out that looking ahead to the second half of the year, the company will continue to promote product research and development based on the BLOKS system and foster the incubation of new series to explore diversified growth opportunities. We believe there is substantial growth potential in overseas operations and new categories such as Block Cars, and the profitability will show a continuous improvement trend as the scale effect of these new categories increases. We remain optimistic about the companys growth potential and rarity as a high-quality IP commercialization toy platform and maintain a "Buy" rating.