Dream International (1126) AI Stock Analysis

• Market Cap: $9.22B
• Dividend Yield: 4.41%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.29
• Revenue Growth: 1.82%
• EPS Growth: -11.00%
• Country: HK
• Employees: 28,697
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Leisure
• EPS (TTM): 0.68
• Shares Outstanding: 676,865,050
• 10 Day Avg. Volume: 3,063,893
• 30 Day Avg. Volume: 4,127,006
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 1.78
• 1Y Price Target: $12.48
• Price Target Upside: -8.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: HK$15.50 ▲(13.14% Upside)

Dream International scores highly due to strong technical performance and solid valuation metrics. Despite some challenges in profit margins and free cash flow, the company's financial health remains robust. The absence of earnings call and corporate event data limits further insights, but current indicators suggest a positive outlook.

Dream International Business Overview & Revenue Model

Company Description

Dream International Limited, an investment holding company, designs, develops, manufactures, and sells toys in Hong Kong, North America, Japan, Europe, the People's Republic of China, Vietnam, Korea, and internationally. The company operates through Plush Stuffed Toys, Plastic Figures, Die-casting Products, and Tarpaulin segments. It manufactures plush stuffed toys on original equipment manufacturing and on original design manufacturing basis. The company also offers plastic figures, die-casting products, dolls, and tarpaulin products, as well as non-seasonal items. In addition, it is involved in the manufacture of fabrics and dyeing products, and business color box and printing products. The company was formerly known as C & H Toy of HK Co., Ltd. and changed its name to Dream International Limited in 2001. Dream International Limited was founded in 1984 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Dream International makes money primarily through the design, production, and sale of toys to international markets. Its revenue model is based on manufacturing plush stuffed toys and other related products for major global brands and retailers. Key revenue streams include direct sales to these clients and long-term manufacturing contracts. The company leverages its extensive production facilities across China and Vietnam, benefiting from cost efficiencies and scalability. Partnerships with major toy brands and retailers are significant contributors to its earnings, as they ensure a steady demand for its products and foster long-term collaborative relationships. Additionally, Dream International invests in research and development to innovate and expand its product offerings, thereby maintaining its competitive edge in the market.

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.45B	5.35B	6.25B	4.80B	3.78B
Gross Profit	1.25B	1.34B	1.23B	614.72M	660.61M
EBITDA	1.12B	1.21B	991.05M	403.47M	498.30M
Net Income	738.50M	829.85M	687.10M	193.56M	272.78M
Balance Sheet
Total Assets	4.96B	4.61B	4.38B	4.20B	3.55B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.39B	761.64M	601.15M	665.40M
Total Debt	142.98M	125.51M	256.88M	298.39M	299.62M
Total Liabilities	998.42M	933.80M	1.18B	1.53B	986.36M
Stockholders Equity	3.96B	3.68B	3.21B	2.67B	2.56B
Cash Flow
Free Cash Flow	532.13M	1.08B	420.98M	11.14M	111.48M
Operating Cash Flow	744.79M	1.16B	621.41M	210.09M	336.81M
Investing Cash Flow	-203.66M	-71.95M	-218.71M	-182.63M	-325.60M
Financing Cash Flow	-375.39M	-489.05M	-227.41M	-93.92M	-50.33M

Dream International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 13.7 is below the 20-day moving average (MA) of 13.74, above the 50-day MA of 10.62, and above the 200-day MA of 6.45, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 59.51 is Neutral, neither overbought nor oversold. The STOCH value of 45.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1126.

Dream International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1126	80 Outperform	$9.22B	12.48	19.30%	4.41%	1.82%	-11.00%
Sector *	63 Neutral	$20.42B	12.48	-7.45%	3.15%	3.08%	-15.32%
GBBYF	―	$225.27M	6.23	6.23%	5.25%	―	―
PMTYF	―	$87.19M	4.90	11.10%	14.81%	―	―
PYHOF	―	$142.26M	―	-7.27%	8.18%	―	―
1005	45 Neutral	HK$355.42M	―	-43.56%	5.15%	-36.06%	-190.94%
6918	44 Neutral	HK$84.32M	―	-19.60%	―	64.02%	42.01%

Dream International Corporate Events

Dream International Announces Board Composition and Roles

Dream International Limited, a company incorporated in Hong Kong, has announced the composition of its board of directors and their respective roles within the organization. The board consists of both executive and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement clarifies the leadership structure and committee responsibilities, which are crucial for the company’s governance and operational oversight.

Dream International Announces Nomination Committee Details

Dream International Limited, a company incorporated in Hong Kong, has announced the composition and duties of its Nomination Committee. The committee, established in 2012, is responsible for ensuring transparent processes in the appointment and re-appointment of Board members, assessing the Board’s effectiveness, and contributing to the company’s corporate strategy through recommendations on Board composition and succession planning.

Dream International Expands Nomination Committee with New Appointment

Dream International Limited, a company incorporated in Hong Kong, has announced the appointment of Ms. Hyunjoo Kim as a new member of its Nomination Committee, effective from July 1, 2025. This strategic appointment expands the committee to five members, potentially enhancing its governance and decision-making capabilities, which may positively impact the company’s operations and stakeholder relations.

Dream International Announces Successful AGM with All Resolutions Passed

Dream International Limited, a company incorporated in Hong Kong, held its Annual General Meeting on May 9, 2025, where all proposed resolutions were passed by shareholders. Key resolutions included the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of KPMG as auditor. The meeting also granted the board mandates to issue and repurchase shares, reflecting shareholder confidence and potentially impacting the company’s strategic flexibility and market operations.