Playmates Toys (0869) AI Stock Analysis

• Market Cap: HK$477.90M
• Dividend Yield: 13.73%
• Average Volume (3M): 415.88K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.22
• 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: 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: 59 Neutral
• Price Target: HK$0.46 ▲(3.41% Upside)

The score is driven primarily by solid financial stability (very low leverage and strong equity base) but is weighed down by declining revenue/profitability and bearish technical signals (below key moving averages with negative MACD). Valuation is a partial offset: a very high dividend yield supports returns, but the P/E is elevated.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic downturns and flexibility for investments.

Positive Cash Generation

Consistent positive cash flow allows for reinvestment in business growth and innovation, sustaining long-term operational health.

Licensing Agreements

Strategic licensing agreements with popular franchises drive consumer demand and enhance market presence, supporting revenue stability.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in market demand or competition, potentially impacting long-term growth prospects.

Decreasing Profit Margins

Falling profit margins suggest increased costs or pricing pressures, which can erode profitability and affect future financial performance.

Operating Cash Flow Decline

A decline in operating cash flow can limit the company's ability to fund operations and invest in growth, posing risks to 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: Negative
• 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 above the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.49, and below the 200-day MA of 0.54, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 21.28 is Positive, neither overbought nor oversold. The STOCH value of 66.67 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$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%
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%
0381	42 Neutral	HK$219.73M	-0.67	-41.64%	―	19.25%	-263.84%

Playmates Toys Corporate Events

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

Playmates Toys has announced that its existing licence with Viacom Media Networks to design, manufacture and sell Teenage Mutant Ninja Turtles products will not be renewed when it expires on 31 December 2026, after which sales must cease and remaining inventories cleared within 90 days. The TMNT range has been a significant but fluctuating revenue contributor, accounting for as much as 77% of group revenue in 2023 and 36% in the first half of 2025, so the loss of this licence could materially affect the company’s financial performance and product mix; management said it will assess the impact and focus on securing new licences while further developing other core lines, including Power Rangers, MonsterVerse and Winx.

The most recent analyst rating on (HK:0869) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Playmates Toys stock, see the HK:0869 Stock Forecast page.

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.

The most recent analyst rating on (HK:0869) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Playmates Toys stock, see the HK:0869 Stock Forecast page.