The average target price of 0325.HK is 150 and suggests 10% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 188.1. This translates into 37% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 126.5. This is equivalent to 8% downside potential in the worst case. 

Bloks Group Limited engages in the design, development, and sales of assembly toys in China. It offers brick-based and assembly character toys. The company sells its products through a multi-channel sales network, which consists of offline sales channels, including distributors and consignment sales; and online sales channels, including various e-commerce platforms. Bloks Group Limited was founded in 2014 and is based in Shanghai, China.

China

Bloks Group Limited

Consumer Cyclical

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 2ppts over six months and grown 10ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 4.3 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

0325.HK has average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is relatively stable and remains mildly favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, low margin volatility, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, and inadequate interest coverage.

In highly turbulent market conditions, 0325.HK is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, 0325.HK is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, overvalued on P/FC. 

Bloks Group Limited

HK$ 144.6

2

Bloks Group Limited

HK$ 144.6

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

HK$ 144.6

About

About

Bloks Group Limited

HK$ 144.6

2

Bloks Group Limited

HK$ 144.6

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

HK$ 144.6

About

About

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