BLOKS (00325) saw its share price surge more than 7% during afternoon trading, bringing its cumulative gains for the month to over 50%. As of the latest report, the stock was trading 7.07% higher at HK$78.80, with a trading volume of HK$446 million.

The company released its interim results, reporting first-half revenue of RMB 1.776 billion, up 32.7% year-on-year, while net profit attributable to shareholders reached RMB 387 million, a 30.5% increase. Adjusted net profit came in at RMB 401 million, up 25.1% year-on-year. The strong overall performance was primarily driven by the ongoing diversification of its intellectual property portfolio, the advancement of its global market expansion strategy, and the successful rollout of new product categories such as building block vehicles.

Additionally, the company proposed an interim dividend of 32.47 HK cents per share, marking its first dividend payout since listing. Citigroup issued a research note stating that the first-half results were solid and are expected to boost market confidence in the company's full-year revenue growth target of approximately 30%. The group's inventory reduction measures implemented since the second half of 2025 have proven effective, with channel inventory levels now healthier. Channel expansion has shifted from a focus on quantity to quality, concentrating on upgrading and refurbishing point-of-sale locations, and targeting youth-oriented trendy toy stores and high-efficiency outlets. Citigroup has fine-tuned its earnings forecasts, primarily reflecting faster overseas revenue growth and margin improvements driven by enhanced operating expense efficiency.