Playmates Toys (0869) AI Stock Analysis

• Market Cap: HK$637.20M
• Dividend Yield: 7.41%
• Average Volume (3M): 571.25K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.21
• Revenue Growth: -16.05%
• EPS Growth: -41.16%
• Country: HK
• Employees: 67
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Leisure
• EPS (TTM): 0.11
• Shares Outstanding: 1,180,000,000
• 10 Day Avg. Volume: 625,271
• 30 Day Avg. Volume: 571,250
• PEG Ratio: -0.96
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.79
• 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: HK$0.47
• Price Target Upside: -12.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$0.50 ▼(-7.41%Downside)

The overall stock score for Playmates Toys is primarily driven by its solid valuation, indicating the stock may be undervalued with a high dividend yield. Financial performance shows stability but faces profitability challenges. Technical analysis suggests a lack of momentum, which is a secondary factor.

Playmates Toys Business Overview & Revenue Model

Company Description

Playmates Toys Limited (0869) is a leading toy manufacturer and distributor based in Hong Kong, specializing in the design and development of innovative and high-quality toys. The company is known for its expansive range of products, which includes action figures, dolls, vehicles, and electronic toys. Playmates Toys is particularly renowned for its association with popular entertainment franchises, creating toys that captivate children's imaginations and enhance their play experiences.

How the Company Makes Money

Playmates Toys generates revenue primarily through the design, manufacture, and sale of toys and related products. The company earns money by securing licensing agreements with entertainment franchises, enabling them to produce toys based on popular characters and themes, which are then sold to retailers and distributors worldwide. Key revenue streams include sales of action figures, dolls, and other toys under well-known brands. Significant partnerships with entertainment companies help Playmates Toys leverage popular intellectual properties to enhance its product offerings and drive sales. The company's earnings are also influenced by strategic marketing and distribution efforts, ensuring their products reach a broad consumer base across various markets.

Playmates Toys Financial Statement Overview

Summary

Playmates Toys demonstrates a mixed financial performance. The company has maintained a solid balance sheet with minimal leverage and a high equity ratio, indicating stability. However, the income statement reflects revenue contraction and declining profitability margins, suggesting challenges in maintaining growth. Cash flow generation remains positive, ensuring operational and financial flexibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	931.33M	1.11B	504.25M	625.11M	289.24M
Gross Profit	500.47M	636.74M	235.71M	303.52M	142.01M
EBITDA	191.06M	273.98M	26.51M	44.65M	-11.58M
Net Income	131.63M	223.75M	9.72M	42.98M	-30.06M
Balance Sheet
Total Assets	1.43B	1.57B	1.18B	1.26B	1.09B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.07B	986.51M	965.24M	956.96M
Total Debt	11.36M	20.23M	28.44M	22.32M	11.68M
Total Liabilities	224.01M	404.19M	190.54M	263.83M	138.86M
Stockholders Equity	1.20B	1.16B	986.80M	995.20M	951.74M
Cash Flow
Free Cash Flow	76.48M	122.53M	66.73M	25.12M	-43.94M
Operating Cash Flow	76.87M	123.17M	67.02M	25.31M	-43.18M
Investing Cash Flow	208.08M	-607.73M	-5.34M	-71.97M	1.69M
Financing Cash Flow	-104.55M	-56.18M	-32.98M	-8.93M	-8.36M

Playmates Toys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.54 is below the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.54, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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
0869	72 Outperform	HK$637.20M	4.84	11.10%	7.41%	-16.05%	-41.16%
Sector *	56 Neutral	HK$24.88B	3.87	-2.03%	6.54%	-0.32%	-67.68%
1005	53 Neutral	HK$355.42M	―	-43.56%	4.46%	-36.06%	-190.94%
3830	48 Neutral	HK$76.00M	―	-18.04%	―	1.11%	36.36%
0114	48 Neutral	HK$344.56M	10.48	5.68%	21.05%	-19.10%	-90.12%
0381	41 Neutral	HK$382.82M	3.10	-36.53%	―	0.71%	-130.99%
6918	39 Underperform	HK$72.45M	―	-19.60%	―	64.02%	42.01%

Playmates Toys Corporate Events

Playmates Toys Limited Successfully Passes All Resolutions at AGM

Playmates Toys Limited held its Annual General Meeting on May 30, 2025, where all proposed resolutions were passed successfully. Key resolutions included the re-election of directors, appointment of auditors, and granting mandates for share repurchase and issuance. The adoption of new bye-laws was also approved, indicating a strategic update in the company’s governance framework.

Playmates Toys Issues Profit Warning Amid Revenue Decline

Playmates Toys Limited has issued a profit warning, reporting a significant decline in revenue and a shift from profit to loss for the first quarter of 2025 compared to the same period in 2024. The decrease in revenue is attributed to reduced shipments of Godzilla x Kong products following the movie release in 2024 and a drop in demand for TMNT products due to the lack of major entertainment events. Additionally, increased expenses for product development and a loss in treasury investments have further impacted the financial results.