Playmates Toys Limited (HK:0869)
:0869
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Playmates Toys (0869) AI Stock Analysis

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HK:0869

Playmates Toys

(0869)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
HK$0.50
▼(-7.41% Downside)
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.

Playmates Toys (0869) vs. iShares MSCI Hong Kong ETF (EWH)

Playmates Toys Business Overview & Revenue Model

Company DescriptionPlaymates Toys (0869) is a prominent toy manufacturer based in Hong Kong, specializing in the design, development, and marketing of high-quality toys and collectibles. The company operates primarily in the children's toy sector, creating products that range from action figures and playsets to plush toys. Playmates is well-known for its partnerships with popular entertainment franchises, including licensing agreements that allow them to produce toys based on beloved characters from movies and television shows.
How the Company Makes MoneyPlaymates 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
65
Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue671.71M931.33M1.11B504.25M625.11M289.24M
Gross Profit330.38M500.47M636.74M235.71M303.52M142.01M
EBITDA-18.82M191.06M273.98M14.54M44.65M-11.58M
Net Income14.56M131.63M223.75M9.72M42.98M-30.06M
Balance Sheet
Total Assets1.32B1.43B1.57B1.18B1.26B1.09B
Cash, Cash Equivalents and Short-Term Investments1.11B1.13B1.07B986.51M965.24M956.96M
Total Debt6.70M11.36M20.23M28.44M22.32M11.68M
Total Liabilities215.29M224.01M404.19M190.54M263.83M138.86M
Stockholders Equity1.10B1.20B1.16B986.80M995.20M951.74M
Cash Flow
Free Cash Flow13.27M76.48M122.53M66.73M25.12M-43.94M
Operating Cash Flow17.20M76.87M123.17M67.02M25.31M-43.18M
Investing Cash Flow297.58M208.08M-607.73M-5.34M-71.97M1.69M
Financing Cash Flow-106.24M-104.55M-56.18M-32.98M-8.93M-8.36M

Playmates Toys Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.54
Price Trends
50DMA
0.57
Negative
100DMA
0.56
Negative
200DMA
0.55
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
39.75
Neutral
STOCH
33.33
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 0.54 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.57, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.75 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$350.60M10.665.68%9.68%-1.07%
63
Neutral
$637.20M43.901.28%12.96%-44.36%-93.64%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
49
Neutral
HK$393.23M-1.73-37.46%4.30%-13.08%-21.27%
46
Neutral
HK$57.00M-31.72%-8.50%4.11%
42
Neutral
HK$250.99M-0.84-41.64%19.25%-263.84%
40
Underperform
HK$134.16M-19.89%84.26%44.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0869
Playmates Toys
0.54
-0.04
-6.74%
HK:1005
Matrix Holdings Limited
0.46
-0.28
-37.84%
HK:0114
Herald Holdings Limited
0.62
0.20
47.62%
HK:0381
Kiu Hung International Holdings Limited
0.26
-1.58
-85.87%
HK:3830
Kiddieland International Ltd.
0.06
0.03
100.00%
HK:6918
Kidztech Holdings Ltd.
0.18
-0.01
-5.26%

Playmates Toys Corporate Events

Playmates Toys Announces Interim Dividend for 2025
Aug 15, 2025

Playmates Toys Limited announced an interim dividend of HKD 0.01 per share for the six months ending June 30, 2025. The dividend will be paid on September 19, 2025, with a record date of September 2, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, potentially impacting investor sentiment and market positioning.

Playmates Toys Announces Board Committee Change
Aug 15, 2025

Playmates Toys Limited has announced a change in the composition of its Board Committee, with Ms. Chan, Helen, an executive director, being appointed as a member of the Nomination Committee effective from August 15, 2025. This appointment reflects the company’s ongoing efforts to strengthen its governance structure and may impact its strategic decision-making processes.

Playmates Toys Limited Announces Board and Committee Roles
Aug 15, 2025

Playmates Toys Limited has announced the composition of its Board of Directors and the roles within its three key committees: Audit, Compensation, and Nomination. This announcement highlights the leadership structure of the company, which is crucial for its strategic decision-making and governance, potentially impacting its operational efficiency and stakeholder confidence.

Playmates Toys Enhances Board Governance with New Nomination Committee Terms
Aug 15, 2025

Playmates Toys Limited has outlined the terms of reference for its Nomination Committee, emphasizing the importance of maintaining a diverse and skilled Board of Directors. The committee, which will consist of a majority of independent non-executive directors and include at least one director of a different gender, is tasked with reviewing the Board’s structure and composition, recommending director appointments, and ensuring adherence to the company’s corporate strategy. This initiative is expected to enhance the company’s governance and strategic alignment, potentially impacting its market positioning positively.

Playmates Toys Faces Revenue Decline Amidst Trade Challenges
Aug 15, 2025

Playmates Toys reported a challenging first half of 2025, with revenue dropping by 58% to HK$186 million compared to the same period in 2024. The decline was attributed to reduced shipments of Godzilla x Kong products, decreased demand for Teenage Mutant Ninja Turtles toys, and disruptions in the U.S. market due to trade tensions. The company faced an operating loss of HK$45 million and a net loss of HK$25.6 million. Despite these challenges, Playmates Toys is actively developing new products and expanding its brand portfolio, including a new global license agreement with Hasbro for Power Rangers toys and the upcoming release of a Winx Club toy line.

Playmates Toys Issues Profit Warning Amid Revenue Decline
Aug 4, 2025

Playmates Toys Limited has issued a profit warning, revealing a significant decline in revenue and a net loss for the first half of 2025 compared to the same period in 2024. This downturn is attributed to decreased shipments of Godzilla x Kong products, reduced demand for Teenage Mutant Ninja Turtles items, increased expenses for upcoming product launches, and disruptions in shipments to the U.S. market due to trade tensions and tariffs. The company is finalizing its interim financial statements, with results expected to be announced on August 15, 2025.

Playmates Toys to Announce Interim Results and Dividend Consideration
Aug 1, 2025

Playmates Toys Limited has announced a board meeting scheduled for August 15, 2025, to approve and publish the interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns to shareholders, impacting its market positioning and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 03, 2025