Core Viewpoint - Bloks Group Limited, known as the "Chinese version of LEGO," went public on the Hong Kong Stock Exchange on January 10, 2024, and has rapidly become the largest assembly character toy company in China and the third largest globally, driven by strong IP operation capabilities, cost-effective products, and an efficient supply chain [1][4]. Group 1: Company Overview - Founded in 2014, Bloks focuses on the design, research, and sales of assembly character toys, holding over 50 globally recognized IPs including Ultraman, Transformers, Marvel Heroes, and Naruto [1]. - Bloks has established a market leadership position in the assembly character toy sector since its strategic shift in 2022, particularly after acquiring licenses for Ultraman in 2021 and Transformers in 2022 [4]. Group 2: Financial Performance - According to Citigroup's report, Bloks is expected to achieve a compound annual growth rate (CAGR) of 54% in adjusted net profit and 52% in revenue from 2024 to 2027 [1]. - The company reported a net profit of RMB 74 million for 2023, with projections of RMB 582 million for 2024 and RMB 2.131 billion for 2027, indicating significant growth [2]. Group 3: Competitive Advantage - Bloks' competitive edge lies in its high cost-performance ratio, targeting children aged 6-16 with products priced between RMB 19.9 and RMB 79, significantly lower than competitors like Bandai, which targets adult fans with prices ranging from RMB 99 to RMB 1000 [4]. - The company holds a 30.3% market share in China's assembly character toy market and a 6.3% share globally, ranking first in China and third worldwide [5]. Group 4: IP Strategy - Bloks' business model is heavily reliant on its IP portfolio, with over 50 licensed IPs and two self-developed IPs [6]. - The company plans to diversify its IP strategy to reduce reliance on key IPs, with Ultraman and Transformers expected to contribute 49% and 20% of revenue in 2024, respectively [8][11]. Group 5: Product Development - Bloks employs a "standardized structure + customized appearance" model for product design, allowing for rapid iteration and innovation, with a product development cycle of 6-7 months compared to the industry average of 10-12 months [12]. - The company aims to launch 800-1000 SKUs by 2025, significantly increasing from 197 in 2023 and approximately 400 in 2024 [12]. Group 6: Market Expansion - Bloks plans to increase its sales points in China from 150,000 in 2024 to 250,000-300,000 in 2025, focusing on lower-tier cities [13]. - The company is also expanding its overseas presence, with expectations for international business to grow from 3% of revenue in 2024 to 10% in 2025, targeting regions such as Southeast Asia, North America, and the EU [15].