• 1H26 revenue/PATMI were below expectations at 46%/44% of our FY26e forecast. Underlying PATMI in 1H26 declined 14.3% YoY to S$84.8mn. Taxi operations remain the weakest segment, with EBIT plunging 46% YoY. Operating conditions worsened in Australia and the UK. Interim dividend was unchanged at 3.91 cents.
• Taxi earnings continue to suffer. Singapore taxi fleet is shrinking, Australia is facing soft consumer demand and UK premium services are disrupted by the Middle East conflict. UK is the bright spot, with repricing of London bus contracts to higher margins. It has pushed public transport earnings 11% higher in 1H26.
• We reduce our FY26e earnings by 7% to S$177mn. We expect the weakness in taxi to continue into 2H26.  Our DCF target price is lowered to S$1.21 (prev. S$1.35), and NEUTRAL recommendation is maintained. The structural headwinds for taxis are worsening and spreading. The ~S$850mn worth of acquisitions made by Comfort has not delivered the turnaround in earnings.

• 1H26 revenue declined 19.4% YoY to US$65.4mn, driven by a decline in active users and
flat ARPU growth. Net loss narrowed to US$1.6mn from US$4.6mn in 1H25, supported
by ongoing cost-optimisation efforts. 1H26 revenue accounted for 45% of our FY26e
forecast, while earnings remained below our expectations as the company continued to
be loss-making, versus our FY26e PATMI forecast of US$3.8mn.
• 17LIVE plans to diversify revenue through live commerce and short-drama/AI-driven
drama production, primarily targeting Japan via revenue-sharing partnerships with short
drama platforms. It will also strengthen its core livestreaming business by launching AI
Co-Host and rolling out 17Animaker more broadly to enhance streamer productivity and
user engagement.
• Following this report, we will be ceasing coverage of 17LIVE due to the reallocation of
coverage resources.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
Continue Reading