Understanding the Market | BLOKS rises over 4%, with vast growth potential in building block toys; the company has advantages in IP operation and channels

BLOKS rose over 4%, as of the time of writing, up 4.63%, priced at HKD 94.95, with a transaction volume of HKD 95.8153 million. In terms of news, China International Capital Corporation (CICC) released a research report, giving BLOKS an initial rating of "outperforming the industry" with a target price of HKD 105. The firm is optimistic about the broad growth potential of building block role-playing toys in the global market and the advantages BLOKS has established in product development, IP operation, and channel management. Tianfeng Securities believes that the company's future growth will mainly depend on two directions: product IP and channels. Regarding product IP, the company has a rich SKU of proprietary IP products, which, although accounting for a low proportion of revenue, have high gross margins and significant future potential. Additionally, products developed in collaboration with IPs like Hello Kitty effectively expand the female demographic, opening up the imagination space for the female market. In terms of channels, the overseas market has considerable potential. Although BLOKS's overseas layout is still in its early stages, revenue is growing rapidly, and the company is currently accelerating its overseas market development, expecting to reach a turning point this year