Playmates Toys (0869) AI Stock Analysis

• Market Cap: $601.80M
• Dividend Yield: 13.73%
• Average Volume (3M): 415.88K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 0.24
• Revenue Growth: -44.36%
• EPS Growth: -93.64%
• Country: HK
• Employees: 67
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.02
• Shares Outstanding: 1,180,000,000
• 10 Day Avg. Volume: 321,630
• 30 Day Avg. Volume: 415,883
• PEG Ratio: -0.13
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 9.57
• Enterprise Value/Market Cap: -0.78
• Enterprise Value/Revenue: -0.70
• Enterprise Value/Gross Profit: -1.42
• Enterprise Value/Ebitda: 25.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$0.50 ▲(13.64% Upside)

Playmates Toys' overall stock score reflects a strong balance sheet and high dividend yield, which are offset by declining revenue, profitability challenges, and bearish technical indicators. The high P/E ratio suggests overvaluation, but the substantial dividend yield offers some compensation to investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides Playmates Toys with financial stability and flexibility to weather economic fluctuations and invest in growth opportunities.

Cash Flow Generation

Consistent free cash flow generation ensures that Playmates Toys can sustain operations, reinvest in product development, and potentially return value to shareholders through dividends.

High Dividend Yield

A high dividend yield provides a significant income component for investors, enhancing the attractiveness of Playmates Toys as a long-term investment, especially in a low-interest-rate environment.

Negative Factors

Revenue Contraction

Declining revenue and profitability margins suggest challenges in maintaining growth, which could impact Playmates Toys' ability to invest in new product lines and compete effectively in the market.

Declining Profit Margins

A decrease in profit margins indicates increased cost pressures or pricing challenges, potentially affecting the company's ability to generate profits and invest in future growth initiatives.

Operating Cash Flow Decline

A significant decline in operating cash flow can limit Playmates Toys' ability to fund operations and strategic initiatives, potentially impacting long-term growth and financial health.

Playmates Toys Business Overview & Revenue Model

Company Description

Playmates Toys Limited, an investment holding company, engages in the design, development, marketing, and distribution of toys and family entertainment activity products. The company offers its products under the Godzilla vs. Kong, Miraculous, Spy Ninjas, Vlad & Niki, Pikwik Pack, Billie Eilish, Disney, Classic Godzilla Titans, Miraculous Ladybug, and TMNT vs Cobra Kai brands. It has operations in Hong Kong, the United States, Europe, the Asia Pacific, and internationally. The company was founded in 1966 and is based in Tsimshatsui, Hong Kong. Playmates Toys Limited is a subsidiary of PIL Toys Limited.

How the Company Makes Money

Playmates Toys generates revenue through the sale of its toy products, which are distributed globally through various retail channels, including major toy retailers, department stores, and e-commerce platforms. The company benefits significantly from licensing agreements with entertainment studios, which enable it to produce toys based on popular franchises, driving consumer demand. Key revenue streams include direct sales from retail outlets and online sales, as well as royalties from licensed products. The company's ability to innovate and respond to market trends, coupled with strategic partnerships, enhances its earnings potential and market presence.

Playmates Toys Financial Statement Overview

Summary

Playmates Toys shows a mixed financial performance with a strong balance sheet and positive cash flow, but faces challenges with declining revenue and profitability margins. The company's low leverage and high equity ratio indicate financial stability, but improving revenue growth and profitability is crucial.

Income Statement

Playmates Toys showed a declining total revenue from 2023 to 2024, decreasing by approximately 16.1%. The gross profit margin improved slightly to 53.73% in 2024 from 57.39% in 2023. However, the net profit margin declined to 14.13% from 20.16%. Despite the drop in revenue, the company maintained a positive EBIT margin of 10.12% and EBITDA margin of 10.19% in 2024, indicating operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01 in 2024, showcasing low leverage risk. The equity ratio stands at 84.31%, indicating strong financial stability. The return on equity (ROE) is 10.96% in 2024, which is decent but shows a decline from previous years, reflecting reduced profitability on shareholders' equity.

Cash Flow

Operating cash flow decreased by 37.6% from 2023 to 2024, impacting the cash flow score. However, the company generated a stable free cash flow consistent with its net income, as seen in an operating cash flow to net income ratio of 0.58 and a free cash flow to net income ratio of 0.58 in 2024. The cash flow remains positive, which supports ongoing operations and potential reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	671.71M	931.33M	1.11B	504.25M	625.11M	289.24M
Gross Profit	330.38M	500.47M	636.74M	235.71M	303.52M	142.01M
EBITDA	-18.82M	191.06M	273.98M	14.54M	44.65M	-11.58M
Net Income	14.56M	131.63M	223.75M	9.72M	42.98M	-30.06M
Balance Sheet
Total Assets	1.32B	1.43B	1.57B	1.18B	1.26B	1.09B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.13B	1.07B	986.51M	965.24M	956.96M
Total Debt	6.70M	11.36M	20.23M	28.44M	22.32M	11.68M
Total Liabilities	215.29M	224.01M	404.19M	190.54M	263.83M	138.86M
Stockholders Equity	1.10B	1.20B	1.16B	986.80M	995.20M	951.74M
Cash Flow
Free Cash Flow	13.27M	76.48M	122.53M	66.73M	25.12M	-43.94M
Operating Cash Flow	17.20M	76.87M	123.17M	67.02M	25.31M	-43.18M
Investing Cash Flow	297.58M	208.08M	-607.73M	-5.34M	-71.97M	1.69M
Financing Cash Flow	-106.24M	-104.55M	-56.18M	-32.98M	-8.93M	-8.36M

Playmates Toys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0869, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.53, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 12.69 is Positive, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0869.

Playmates Toys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0114	66 Neutral	HK$405.01M	8.11	8.24%	8.96%	5.72%	986.84%
0869	63 Neutral	$601.80M	41.46	1.28%	13.73%	-44.36%	-93.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3830	53 Neutral	HK$64.00M	-9.20	-32.53%	―	-6.48%	-38.10%
1005	50 Neutral	HK$362.98M	-1.60	-37.46%	4.17%	-13.08%	-21.27%
6918	43 Neutral	HK$117.67M	-1.63	-19.89%	―	84.26%	44.41%
0381	42 Neutral	HK$193.21M	-0.65	-41.64%	―	19.25%	-263.84%

Playmates Toys Corporate Events

Playmates Toys Renews Key Leases in Hong Kong and UK

Playmates Toys Limited has announced the renewal of leases for office, warehouse, and exhibition spaces in Hong Kong and the UK, effective from January 1, 2026. These transactions, involving connected landlords, are considered connected transactions under the Listing Rules, with an estimated right-of-use asset value of approximately HK$14.2 million. This renewal ensures continuity in the company’s operations and aligns with regulatory requirements, impacting its financial statements and stakeholder interests.