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Dream International Limited (HK:1126)
:1126
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Dream International (1126) AI Stock Analysis

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HK:1126

Dream International

(1126)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
HK$12.50
▲(40.29% Upside)
Dream International's overall stock score is driven by its strong financial performance and attractive valuation, which are offset by negative technical indicators. The company's robust balance sheet and low leverage are significant strengths, while the current bearish market momentum presents a risk. The absence of recent earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Strong Balance Sheet
Dream International's low leverage and strong equity position provide financial stability and flexibility for future growth initiatives.
Revenue Growth
Consistent revenue growth indicates a stable demand for Dream International's products, supporting long-term business sustainability.
Cash Generation
Strong cash generation from operations ensures Dream International can fund its operations and invest in growth without relying heavily on external financing.
Negative Factors
Declining Profit Margins
The decline in profit margins suggests challenges in cost management or pricing power, which could impact profitability if not addressed.
Free Cash Flow Decline
A significant drop in free cash flow may limit Dream International's ability to invest in new projects or return capital to shareholders, affecting long-term growth.
Decreased Return on Equity
A decline in return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence.

Dream International (1126) vs. iShares MSCI Hong Kong ETF (EWH)

Dream International Business Overview & Revenue Model

Company DescriptionDream International (1126) is a prominent player in the toy and plush manufacturing sector, specializing in the design and production of high-quality plush toys, dolls, and other soft toys. The company operates primarily in Asia, with a significant export market in North America and Europe. Dream International focuses on innovative product development, leveraging popular licensing agreements with well-known brands to create merchandise that appeals to a wide range of consumers, particularly children and collectors.
How the Company Makes MoneyDream International generates revenue primarily through the sale of its plush toys and related merchandise. The company operates on a business-to-business (B2B) model, selling its products to retailers, distributors, and other wholesalers. Key revenue streams include direct sales from their manufacturing operations, as well as royalties from licensing agreements with recognizable brands in the entertainment and media sectors. Additionally, Dream International benefits from strategic partnerships with major retailers, which provide a stable distribution channel and enhance market visibility. The company also invests in innovative product designs and seasonal collections, which contribute to higher sales volumes during peak shopping periods, such as holidays and special events.

Dream International Financial Statement Overview

Summary
Dream International displays solid financial health with strong revenue growth and efficient operations. The balance sheet is particularly robust, showcasing low leverage and high equity. However, challenges remain in maintaining profit margins and free cash flow generation, which should be monitored for future sustainability.
Income Statement
75
Positive
Dream International has shown consistent revenue growth with a 1.83% increase from 2023 to 2024. The gross profit margin is healthy at 22.99%, indicating efficient cost management. However, the net profit margin declined from 15.50% in 2023 to 13.55% in 2024, suggesting challenges in converting sales into profit. EBIT and EBITDA margins remain strong at 17.11% and 19.70% respectively, highlighting operational efficiency.
Balance Sheet
82
Very Positive
The company exhibits a strong equity position with a debt-to-equity ratio of 0.04 and an equity ratio of 79.85%, indicating low financial leverage and strong asset backing. Return on equity decreased from 22.57% in 2023 to 18.65% in 2024, reflecting a slight decrease in profit generation from equity.
Cash Flow
70
Positive
Operating cash flow to net income ratio is 1.01, demonstrating strong cash generation from operations. However, the free cash flow decreased by 50.65% from 2023 to 2024, which could pose challenges for future investments. Despite this, the free cash flow to net income ratio remains robust at 0.72, indicating good cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.73B5.45B5.35B6.25B4.80B3.78B
Gross Profit1.22B1.25B1.34B1.23B614.72M660.61M
EBITDA1.10B1.12B1.21B1.03B448.51M498.30M
Net Income766.67M738.50M829.85M687.10M193.56M272.78M
Balance Sheet
Total Assets5.19B4.96B4.61B4.38B4.20B3.55B
Cash, Cash Equivalents and Short-Term Investments1.58B1.61B1.39B761.64M601.15M665.40M
Total Debt111.71M142.98M125.51M256.88M298.39M299.62M
Total Liabilities1.16B998.42M933.80M1.18B1.53B986.36M
Stockholders Equity4.03B3.96B3.68B3.21B2.67B2.56B
Cash Flow
Free Cash Flow683.13M541.14M1.08B420.98M11.14M111.48M
Operating Cash Flow896.93M744.79M1.16B621.41M210.09M336.81M
Investing Cash Flow-101.64M-203.66M-71.95M-78.29M-204.06M-368.85M
Financing Cash Flow-448.98M-379.21M-489.05M-233.73M-101.83M-56.34M

Dream International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8.91
Price Trends
50DMA
10.38
Negative
100DMA
12.16
Negative
200DMA
9.30
Negative
Market Momentum
MACD
-0.47
Negative
RSI
45.53
Neutral
STOCH
88.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1126, the sentiment is Neutral. The current price of 8.91 is above the 20-day moving average (MA) of 8.67, below the 50-day MA of 10.38, and below the 200-day MA of 9.30, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1126.

Dream International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$6.50B8.4819.99%7.30%11.18%-1.06%
64
Neutral
HK$1.94B7.024.75%6.03%7.94%-24.24%
63
Neutral
$637.20M43.901.28%13.73%-44.36%-93.64%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
55
Neutral
$1.10B-2.56-8.58%8.33%-39.71%-74.16%
49
Neutral
HK$393.23M-1.73-37.46%4.65%-13.08%-21.27%
43
Neutral
HK$116.17M-19.89%84.26%44.41%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1126
Dream International
8.91
4.50
101.95%
HK:1086
Goodbaby International Holdings
1.12
0.30
36.59%
HK:0869
Playmates Toys
0.52
-0.02
-4.24%
HK:0635
Playmates Holdings
0.54
0.03
5.06%
HK:1005
Matrix Holdings Limited
0.43
-0.13
-23.21%
HK:6918
Kidztech Holdings Ltd.
0.16
0.01
6.67%

Dream International Corporate Events

Dream International to Enhance Share Liquidity with Board Lot Size Reduction
Oct 15, 2025

Dream International Limited, a company incorporated in Hong Kong, has announced a change in the board lot size for its shares traded on the Hong Kong Stock Exchange. Effective November 6, 2025, the board lot size will decrease from 2,000 shares to 500 shares. This change aims to enhance the liquidity of the shares by reducing the board lot value from HK$22,600 to HK$5,650, based on the current share price. The company believes this adjustment is in the best interest of both the company and its shareholders. No odd lot arrangements will be made, and the company does not plan any corporate actions or fundraising activities in the next twelve months that would counteract this change.

The most recent analyst rating on (HK:1126) stock is a Hold with a HK$12.50 price target. To see the full list of analyst forecasts on Dream International stock, see the HK:1126 Stock Forecast page.

Dream International Announces Board Changes to Strengthen Leadership
Oct 15, 2025

Dream International Limited announced a significant change in its board of directors, effective November 20, 2025. Mr. Jong Hun Lim will resign from his position as an independent non-executive director and chairman of the Nomination Committee, with Professor Seung Yeon Yoo taking over these roles. Professor Yoo brings extensive experience in finance and accounting, which is expected to strengthen the company’s governance and strategic direction. This transition reflects the company’s ongoing efforts to enhance its leadership team and maintain its competitive edge in the industry.

The most recent analyst rating on (HK:1126) stock is a Hold with a HK$12.50 price target. To see the full list of analyst forecasts on Dream International stock, see the HK:1126 Stock Forecast page.

Dream International Reports Strong Revenue Growth Amid Challenges
Aug 26, 2025

Dream International Limited, a Hong Kong-based company, specializes in the design, development, manufacture, and sale of plush stuffed toys, plastic figures, and tarpaulin, operating within the toy industry with a notable presence across multiple regions.

Dream International Reports Strong H1 2025 Financial Results
Aug 25, 2025

Dream International Limited announced its unaudited consolidated results for the first half of 2025, showing a revenue increase to HKD 2.58 billion from HKD 2.29 billion in the same period of 2024. Despite a slight decrease in gross profit, the company achieved a higher profit from operations and a significant rise in total comprehensive income, indicating improved financial health and positive market positioning.

The most recent analyst rating on (HK:1126) stock is a Buy with a HK$15.50 price target. To see the full list of analyst forecasts on Dream International stock, see the HK:1126 Stock Forecast page.

Dream International Announces Interim Dividend for 2025
Aug 25, 2025

Dream International Limited, a company listed on the Hong Kong Stock Exchange, has announced an interim dividend of HKD 0.25 per share for the six months ending June 30, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, with the dividend payment scheduled for October 13, 2025.

The most recent analyst rating on (HK:1126) stock is a Buy with a HK$15.50 price target. To see the full list of analyst forecasts on Dream International stock, see the HK:1126 Stock Forecast page.

Dream International Announces Executive Board Changes
Aug 25, 2025

Dream International Limited has announced a change in its executive board with the appointment of Mr. Jae Seng Yu as an executive director, effective August 25, 2025. Mr. Yu, who has extensive experience in the toy industry, will replace Mr. Sungsick Kim, who has resigned to take on an advisory role within the company. This strategic shift is expected to leverage Mr. Yu’s industry knowledge to enhance the company’s operations and market positioning.

The most recent analyst rating on (HK:1126) stock is a Buy with a HK$15.50 price target. To see the full list of analyst forecasts on Dream International stock, see the HK:1126 Stock Forecast page.

Dream International Announces Board Composition and Roles
Aug 25, 2025

Dream International Limited has announced the composition of its board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with specific members assigned to the Audit, Nomination, and Remuneration Committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making framework that will guide the company’s strategic direction.

The most recent analyst rating on (HK:1126) stock is a Buy with a HK$15.50 price target. To see the full list of analyst forecasts on Dream International stock, see the HK:1126 Stock Forecast page.

Dream International Appoints New Chief Financial Officer
Aug 25, 2025

Dream International Limited has announced the appointment of Mr. Min Jung Lee as the new Chief Financial Officer, effective from August 25, 2025. Mr. Lee, who has been with the company since 2018 and is currently an executive director and head of the finance department, brings extensive experience in sales and strategy planning from his previous role at LOTTE Corporation. This appointment is expected to strengthen the company’s financial leadership and potentially enhance its strategic positioning in the industry.

The most recent analyst rating on (HK:1126) stock is a Buy with a HK$15.50 price target. To see the full list of analyst forecasts on Dream International stock, see the HK:1126 Stock Forecast page.

Dream International Schedules Board Meeting for Interim Results
Aug 13, 2025

Dream International Limited has announced a board meeting scheduled for August 25, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend and address other business matters, which could impact the company’s financial strategy and shareholder returns.

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: Nov 08, 2025