Playmates Holdings (0635) AI Stock Analysis

• Market Cap: HK$1.03B
• Dividend Yield: 9.09%
• Average Volume (3M): 204.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -39.71%
• EPS Growth: -74.16%
• Country: HK
• Employees: 83
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.10
• Shares Outstanding: 2,068,000,000
• 10 Day Avg. Volume: 184,400
• 30 Day Avg. Volume: 204,433
• PEG Ratio: <0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 5.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(0.00% Upside)

The overall stock score of 55 reflects significant financial challenges, particularly in revenue and profitability, which weigh heavily on the score. Technical analysis provides a more positive outlook with potential upward trends, while valuation is mixed due to a high dividend yield but negative P/E ratio. The absence of earnings call and corporate events data limits further insights.

Playmates Holdings Business Overview & Revenue Model

Company Description

Playmates Holdings Limited, an investment holding company, primarily engages in the creation, design, development, marketing, and distribution of toys in Hong Kong, the Americas, Europe, the rest of the Asia Pacific, and internationally. It operates through three segments: Property Investments and Associated Businesses, Investment Business, and Toy Business. The Property Investments and Associated Businesses segment invests in and leases commercial, industrial, and residential premises for rent; and provides property management services, such as repair and maintenance, building security, general cleaning for common areas, hand-over and take-over of premises, and the monitoring of reinstatement and refurbishment works. The Investment Business segment invests in financial instruments, including listed equity and managed funds. The Toy Business segment designs, develops, markets, and distributes toys and family entertainment activity products. Playmates Holdings Limited was founded in 1966 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Playmates Holdings generates revenue through multiple streams, primarily from the sale of toys and games, which are distributed globally. The company benefits significantly from licensing its established brands to third-party manufacturers and media producers, creating a steady income through royalties. Additionally, Playmates Holdings engages in strategic partnerships with entertainment companies to develop merchandise related to popular film and television franchises, which boosts its visibility and sales. Seasonal demand for toys, especially around holidays, further enhances the company's earnings, as does their ability to innovate and refresh product lines to attract consumers.

Playmates Holdings Financial Statement Overview

Summary

Playmates Holdings is facing financial challenges, particularly in revenue generation and profitability. The income statement shows declining revenues and significant losses. The balance sheet remains strong with low leverage, but the negative return on equity is concerning. Cash flow issues are evident, with the company failing to generate positive operating or free cash flow in the latest year. Overall, the company needs to address its revenue and profitability issues to improve its financial health.

Income Statement

The company has experienced a decline in revenue and profitability. The revenue decreased from 2023 to 2024, marking a 14.09% decline. Gross profit margin also deteriorated from 61.64% in 2023 to 59.10% in 2024. Net profit margin turned negative in 2024 at -35.00%, showing significant losses compared to a positive margin in 2023. EBIT and EBITDA margins have similarly turned negative, indicating operational challenges.

Balance Sheet

The company's balance sheet shows a relatively strong equity position with an equity ratio of 82.48% in 2024. The debt-to-equity ratio is low at 0.04, indicating low leverage. However, the return on equity is negative due to net losses, which is a concern despite the strong equity base.

Cash Flow

The cash flow statement indicates a lack of positive cash flow generation, with operating cash flow at zero in 2024. This is a significant drop from 2023, where there was a positive operating cash flow. Free cash flow also turned negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	826.67M	1.09B	1.27B	719.63M	860.76M	536.32M
Gross Profit	468.18M	645.48M	784.08M	438.06M	523.88M	370.71M
EBITDA	-153.97M	-231.73M	337.73M	-146.63M	23.57M	-449.19M
Net Income	-427.97M	-382.28M	10.34M	-212.78M	-49.43M	-507.60M
Balance Sheet
Total Assets	5.74B	6.07B	6.78B	6.65B	7.54B	7.45B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.21B	1.19B	1.22B	1.63B	1.56B
Total Debt	140.91M	181.65M	237.81M	349.08M	798.94M	742.08M
Total Liabilities	435.41M	472.56M	711.52M	592.86M	1.13B	952.27M
Stockholders Equity	4.76B	5.00B	5.49B	5.57B	5.92B	6.03B
Cash Flow
Free Cash Flow	105.94M	222.12M	170.55M	192.26M	127.52M	76.96M
Operating Cash Flow	107.49M	225.71M	172.88M	211.09M	159.87M	97.46M
Investing Cash Flow	297.24M	120.40M	-551.23M	-23.21M	-44.20M	-18.04M
Financing Cash Flow	-188.78M	-197.27M	-229.76M	-568.26M	-122.71M	-141.27M

Playmates Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0635, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.52, and below the 200-day MA of 0.51, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0635.

Playmates Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0114	66 Neutral	HK$374.78M	7.51	8.24%	8.96%	5.72%	986.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0869	59 Neutral	HK$477.90M	32.93	1.28%	13.73%	-44.36%	-93.64%
0635	55 Neutral	HK$1.03B	-2.42	-8.58%	9.09%	-39.71%	-74.16%
3830	52 Neutral	HK$64.00M	-7.36	-32.53%	―	-6.48%	-38.10%
1005	50 Neutral	HK$317.61M	-1.40	-37.46%	4.17%	-13.08%	-21.27%
6918	43 Neutral	HK$113.17M	-1.51	-19.89%	―	84.26%	44.41%

Playmates Holdings Corporate Events

Playmates Faces Major Revenue Hit as Teenage Mutant Ninja Turtles Licence Ends in 2026

Playmates Holdings has disclosed that a key licence agreement held by its major subsidiary Playmates Toys Limited will not be renewed, ending the group’s rights to design, manufacture and sell Teenage Mutant Ninja Turtles products from 31 December 2026, with a 90‑day sell‑off period for remaining inventory. The TMNT line has been a major revenue driver, accounting for up to 77% of Playmates Toys’ consolidated revenue in 2023 and 36% in the first half of 2025, and up to 67% of Playmates Holdings’ consolidated revenue in 2023 and 26% in the first half of 2025, meaning the loss of the licence is expected to materially affect the group’s future financial performance; the board has said it will assess the impact and cautioned shareholders and investors when dealing in the company’s shares.

The most recent analyst rating on (HK:0635) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Playmates Holdings stock, see the HK:0635 Stock Forecast page.