Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<ul>
<li>Bloks Group, a fast-growing toy company in China, will disclose the proposed size and the initial price range for the share sale soon.</li>
<li>In my insight, I discuss IPO valuation, update relative valuation table and set a target valuation for Bloks Group ahead of an IPO.</li>
<li>Bloks Group enjoys higher relative growth profile and superior gross profit margins. The company has over RMB600M in cash and equivalents and no debt.  </li>
</ul>


Bloks Group, a fast-growing toy company in China, will disclose the proposed size and the initial price range for the share sale soon.
In my insight, I discuss IPO valuation, update relative valuation table and set a target valuation for Bloks Group ahead of an IPO.
Bloks Group enjoys higher relative growth profile and superior gross profit margins. The company has over RMB600M in cash and equivalents and no debt.  


Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

Asia-ex Japan PM

John Liu

<ul>
<li>Bloks Group, founded in 2014, is China's top assembly character toy company, targetting primiary school students.</li>
<li>Bloks faces competition from multiple domestic competitors in a slow growing market. The company's aggressive market expanison in the past 2 years has come at a significant cost .</li>
<li>The IPO valuation may be high, considering the industry's low barriers to entry and the company's unstainable growth.</li>
</ul>


Bloks Group, founded in 2014, is China's top assembly character toy company, targetting primiary school students.
Bloks faces competition from multiple domestic competitors in a slow growing market. The company's aggressive market expanison in the past 2 years has come at a significant cost .
The IPO valuation may be high, considering the industry's low barriers to entry and the company's unstainable growth.


Bloks Group IPO: Just a Traditional Toy Company in Red Ocean Market

<ul>
<li>Bloks Group, a founder-led leader in China’s assembly character toy segment, updated its PHIP and continued to post hyper growth.</li>
<li>In the nine months ended Sep-24, the company’s revenue totaled ~RMB1629m, representing a y/y growth of ~177%, due to significant increase in product sales volume.</li>
<li>According to the most recent PHIP, Ultraman IP license in China was extended to 2027 and TRANSFORMERS IP license with Hasbro will expire only in 2028.</li>
</ul>


Bloks Group, a founder-led leader in China’s assembly character toy segment, updated its PHIP and continued to post hyper growth.
In the nine months ended Sep-24, the company’s revenue totaled ~RMB1629m, representing a y/y growth of ~177%, due to significant increase in product sales volume.
According to the most recent PHIP, Ultraman IP license in China was extended to 2027 and TRANSFORMERS IP license with Hasbro will expire only in 2028.


Bloks Group IPO:  PHIP Updates, Revenue Continues To Post Hyper Growth As IPO Nears

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>We preliminarily estimate TOP TOY may be valued at 19.1-40.3% of <a href="https://www.smartkarma.com/entities/miniso-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:36659:1" rel="noopener">MINISO Group Holding (9896 HK)</a>'s market capitalisation, though there are still a lot of moving parts.  </li>
<li>TOP TOY is doing well in FY24 with a 41.1% surge in GMV, and for 1Q25, its revenue grew by 58.9%, reflecting exciting growth prospects.</li>
<li>
<a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (325 HK)</a> is a better comparable as its revenue is 2.3x TOP TOY's, but its profit is 8x. A successful TOP TOY spin-off should benefit Miniso.</li>
</ul>


We preliminarily estimate TOP TOY may be valued at 19.1-40.3% of MINISO Group Holding (9896 HK)'s market capitalisation, though there are still a lot of moving parts.  
TOP TOY is doing well in FY24 with a 41.1% surge in GMV, and for 1Q25, its revenue grew by 58.9%, reflecting exciting growth prospects.

Bloks Group (325 HK) is a better comparable as its revenue is 2.3x TOP TOY's, but its profit is 8x. A successful TOP TOY spin-off should benefit Miniso.


MINISO Group (9896 HK): Assessing the TOP TOY Spin-Off

52TOYS Development / Equity Capital Markets

<ul>
<li>52TOYS Development filed to go public in Hong Kong. The Beijing-based toymaker is planning H-share listing that could raise up to $200M.</li>
<li>In my second insight about 52TOYS IPO, I discuss IPO valuation, examine competitive landscape and focus on comparable company analysis.</li>
<li>52TOYS manages 35 proprietary IPs and 80 licensed IPs, including pop, sci-fi and cultural IPs. The company collaborates with 400+ distributors, covering 20,000+ sales outlets. </li>
</ul>


52TOYS Development filed to go public in Hong Kong. The Beijing-based toymaker is planning H-share listing that could raise up to $200M.
In my second insight about 52TOYS IPO, I discuss IPO valuation, examine competitive landscape and focus on comparable company analysis.
52TOYS manages 35 proprietary IPs and 80 licensed IPs, including pop, sci-fi and cultural IPs. The company collaborates with 400+ distributors, covering 20,000+ sales outlets. 


52TOYS Development IPO Valuation Analysis: Modest Upside Vs. Series C+ Round Valuation Looks Fair

China

Bloks Group Limited designs toys. The Company develops and manufactures characters toys, assembly toys, and other products. Bloks Group markets its products throughout China.

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Bloks Group (325 HK)

Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

Bloks Group plans to raise up to $300M in Hong Kong IPO. Goldman Sachs (Asia) and Huatai International are leading the offering. In my insight, I...

Andrei Zakharov

Bloks Group IPO: Just a Traditional Toy Company in Red Ocean Market

China's top assembly character toy company, Bloks Group, faces competition and potential overvaluation due to aggressive expansion and...

John Liu

Bloks Group IPO: PHIP Updates, Revenue Continues To Post Hyper Growth As IPO Nears

Bloks Group, a Shanghai-based fast-growing toy company, plans to raise up to $300M in HK IPO. I like the company’s hyper-growth profile, industry...

Andrei Zakharov

MINISO Group (9896 HK): Assessing the TOP TOY Spin-Off

Preliminary estimates suggest TOP TOY may be valued at 19.1-40.3% of Miniso's market capitalisation, with strong growth prospects and potential...

Osbert Tang, CFA

52TOYS Development IPO Valuation Analysis: Modest Upside Vs. Series C+ Round Valuation Looks Fair

Beijing-based 52TOYS files to go public and plans H-share listing in Hong Kong, aiming to raise up to $200M. In my second insight I discuss...

Andrei Zakharov

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Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

Bloks Group plans to raise up to $300M in Hong Kong IPO. Goldman Sachs (Asia) and Huatai International are leading the offering. In my insight, I...

Andrei Zakharov

Bloks Group IPO: Just a Traditional Toy Company in Red Ocean Market

​China's top assembly character toy company, Bloks Group, faces competition and potential overvaluation due to aggressive expansion and...

John Liu

Bloks Group IPO: PHIP Updates, Revenue Continues To Post Hyper Growth As IPO Nears

Bloks Group, a Shanghai-based fast-growing toy company, plans to raise up to $300M in HK IPO. I like the company’s hyper-growth profile, industry...

Andrei Zakharov

MINISO Group (9896 HK): Assessing the TOP TOY Spin-Off

​Preliminary estimates suggest TOP TOY may be valued at 19.1-40.3% of Miniso's market capitalisation, with strong growth prospects and potential...

Osbert Tang, CFA

52TOYS Development IPO Valuation Analysis: Modest Upside Vs. Series C+ Round Valuation Looks Fair

​Beijing-based 52TOYS files to go public and plans H-share listing in Hong Kong, aiming to raise up to $200M. In my second insight I discuss...

Andrei Zakharov

China's top assembly character toy company, Bloks Group, faces competition and potential overvaluation due to aggressive expansion and...

Preliminary estimates suggest TOP TOY may be valued at 19.1-40.3% of Miniso's market capitalisation, with strong growth prospects and potential...

Beijing-based 52TOYS files to go public and plans H-share listing in Hong Kong, aiming to raise up to $200M. In my second insight I discuss...