HK Stock Market Move | BLOKS (00325) rose nearly 4% in early trading. The company is a leading domestic building block toy manufacturer. Institutions are optimistic about the high growth potential of the building block character racing track.

In the morning session, BLOKS (00325) rose nearly 4%, as of the time of writing, it was up 3.67% to HK$90.45, with a turnover of HK$139.22 million. Public information shows that BLOKS is a leader in the Chinese building block toy market, with over 500 patents, original IP capabilities, and non-exclusive partnerships with around 50 well-known IPs. The company focuses on providing consumers with high-quality and affordable building block toys and has achieved rapid growth. In 2023 and the six months ended June 30, 2024, most of the company's revenue came from products based on Ultraman IP, accounting for 63.5% and 57.4% of revenue, respectively. Guoyuan International pointed out that the domestic building block toy market 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, building block toys will surpass construction toys to become the largest sub-segment in the building block toy market. Cinda also mentioned that with the expansion of toy consumers and audiences for IP toys, the continuous improvement of local companies in research and development, product quality, and IP commercialization capabilities, as well as the emergence of new types of toys, the Chinese market is expected to maintain rapid growth in the future.