On August 18, BLOKS fell 5.16% in regular trading, trading at 75.6 HKD/share, with turnover of approximately HKD 35.7 million. The decline came after the stock had accumulated over 50% gains within the month following its interim results release.

The pullback was driven by profit-taking pressure after the sustained rally, compounded by market concerns over declining profitability. Although the company reported solid first-half revenue growth of 32.7% year-over-year to RMB 1.776 billion and net profit growth of 30.5% to RMB 387 million, gross margin contracted from 48.4% to 44.3%, attributed to a higher mix of RMB 9.9 value-priced products and increased overseas channel expansion costs. The valuation had also recovered close to multiple institutional target price ranges, intensifying short-term correction pressure.

Notably, several brokerages maintained positive ratings, with target prices ranging from HKD 64 to HKD 90. One brokerage expects gross margin to gradually recover in the second half as assembly vehicle production capacity ramps up and the low-price product mix stabilizes.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)