BLOKS (00325) shares extended their rally, climbing over 6% on Tuesday, bringing the month-to-date gain to more than 50%. As of press time, the stock was trading 5.57% higher at HK$77.70, with turnover reaching HK$370 million.

The company released its interim results, reporting revenue of 1.776 billion yuan for the first half, a 32.7% year-on-year increase. Net profit attributable to shareholders rose 30.5% to 387 million yuan, while adjusted net profit grew 25.1% to 401 million yuan. The strong performance was driven by the ongoing diversification of the IP matrix, the advancement of global market growth strategies, and the successful expansion into new categories such as building block vehicles.

The company announced its first-ever interim dividend of 32.47 HK cents per share since listing. Citi, in a research note, said BLOKS' 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 inventories now at healthier levels. Channel expansion has shifted from quantity to quality, focusing on upgrading and renovating points of sale, and emphasizing youth-oriented toy stores and high-efficiency stores. Citi made slight adjustments to its earnings forecasts, mainly reflecting faster overseas revenue growth and improved profit margins driven by higher operating expense efficiency.