HK Stock Market Move | BLOKS (00325) Drops Over 3%, Hits New Low Since Listing, Stock Price Has Dropped by 60% from June High.

BLOKS (00325) fell more than 3%, hitting a new low of HKD 70.05. The stock has seen a significant decline recently, with the current stock price down more than 60% from its peak of HKD 198 per share on June 9th. As of the time of writing, it fell by 3.56%, to HKD 70.5, with a trading volume of HKD 92.156 million. On the news front, CCB International pointed out in a previous research report that BLOKS needs time to prove its ability to deliver stable profits, but it is expected that its strong IP portfolio will give it a high level of competitiveness in both domestic and overseas markets. BLOKS saw a 28% increase in revenue in the first half of the year, but adjusted net profit only rose by 10%, falling short of market expectations. The bank believes that the delayed product releases and early expenditures by the company may affect its short-term profitability. According to Cinda, the company has commercialized 19 IPs in the first half of this year, with a total of 925 SKUs, adding 273 new SKUs, including but not limited to Hatsune Miku, Minions, Sanrio, Detective Conan, Sesame Street, Marvel, Pokemon, Naruto, and more; in addition, the company has signed 13 new IPs. The company's top four IPs in the first half of this year contributed 83.1% of revenue, compared to the same period last year when the top three IPs Ultraman, Transformers, and Hero Unlimited accounted for 92.3% of revenue.