Asia-ex Japan PM

John Liu

Equity Capital Markets

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

<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

Equity Bottom-Up

BOC Aviation provides direct operating leasing of aircrafts to airlines. The Company offers a range services including structured finance, aircraft remarketing, direct operating leases, and technical services.

<ul>
<li>Global aviation supply continues to suffer from various supply chain disruptions, driving up lease rates and aircraft values and benefiting aircraft lessors, such as BOC Aviation (BOCA) </li>
<li>Although BOCA's interim results were disappointing due to delayed aircraft deliveries, I expect its momentum to recover in 2025, driven by incoming aircraft and lower interest costs. </li>
<li>Stock is trading at 0.9x PB, nearing its historical trough of 0.8x, and offering a decent 5% dividend yield.</li>
</ul>


Global aviation supply continues to suffer from various supply chain disruptions, driving up lease rates and aircraft values and benefiting aircraft lessors, such as BOC Aviation (BOCA) 
Although BOCA's interim results were disappointing due to delayed aircraft deliveries, I expect its momentum to recover in 2025, driven by incoming aircraft and lower interest costs. 
Stock is trading at 0.9x PB, nearing its historical trough of 0.8x, and offering a decent 5% dividend yield.


BOC Aviation (2588 HK): Lease Rate Surge to Boost Earnings; Undervalued Stock with 4.5% Div Yield

BYD Electronic International Co., Ltd. researches, develops, manufactures handset components such as handset casings and handset keypads and modules for handset manufacturers.  The Company also provides assembly services comprising assembly service and PCB assembly service to global handset manufacturers.

<ul>
<li>BYD Electronics benefits from two key growth drivers in 2025: a cyclical upswing in its legacy EMS business, and sustained strong growth in auto electronics and AI data cooling devices.</li>
<li>Earnings momentum is expected to pick up in 4Q, with key segments entering an earning upcycle. Expect bottomline growth to accelerate to 45% in 2025 from 9% in 2024.</li>
<li>The 13x 2025 PE multiple does not capture BYDE's transformation from a low-end, cyclical EMS to a leading high-precision manufacturer with a more diverse and balanced set of growth drivers.</li>
</ul>


BYD Electronics benefits from two key growth drivers in 2025: a cyclical upswing in its legacy EMS business, and sustained strong growth in auto electronics and AI data cooling devices.
Earnings momentum is expected to pick up in 4Q, with key segments entering an earning upcycle. Expect bottomline growth to accelerate to 45% in 2025 from 9% in 2024.
The 13x 2025 PE multiple does not capture BYDE's transformation from a low-end, cyclical EMS to a leading high-precision manufacturer with a more diverse and balanced set of growth drivers.


BYD Electronics (285 HK): Earnings Bottoming Out in 4Q24, EV and Data Center Driving Growth in 2025

With 20 years of experience in stock analysis, I have established myself as a seasoned professional in the field. Throughout my career, I have worked in leading investment banks and mutual funds. My extensive background in stock analysis has equipped me with a deep understanding of market dynamics, fundamental analysis, and valuation techniques.

John Liu
Asia-ex Japan PM

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

BOC Aviation (2588 HK): Lease Rate Surge to Boost Earnings; Undervalued Stock with 4.5% Div Yield

Aircraft shortage is driving up lease rates benefiting aircraft lessors like BOC Aviation. Stock trading at 0.9x PB with a 5% dividend yield and...

John Liu

BYD Electronics (285 HK): Earnings Bottoming Out in 4Q24, EV and Data Center Driving Growth in 2025

BYD Electronics poised for strong growth in 2025 with earnings expected to accelerate and transformation to high-precision manufacturer not...

John Liu

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

BOC Aviation (2588 HK): Lease Rate Surge to Boost Earnings; Undervalued Stock with 4.5% Div Yield

​Aircraft shortage is driving up lease rates benefiting aircraft lessors like BOC Aviation. Stock trading at 0.9x PB with a 5% dividend yield and...

John Liu

BYD Electronics (285 HK): Earnings Bottoming Out in 4Q24, EV and Data Center Driving Growth in 2025

​BYD Electronics poised for strong growth in 2025 with earnings expected to accelerate and transformation to high-precision manufacturer not...

John Liu

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

Aircraft shortage is driving up lease rates benefiting aircraft lessors like BOC Aviation. Stock trading at 0.9x PB with a 5% dividend yield and...

BYD Electronics poised for strong growth in 2025 with earnings expected to accelerate and transformation to high-precision manufacturer not...