Dream International (1126) AI Stock Analysis

• Market Cap: $6.81B
• Dividend Yield: 7.95%
• Average Volume (3M): 5.75M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.29
• Revenue Growth: 1.82%
• EPS Growth: -11.00%
• Country: HK
• Employees: 28,697
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Leisure
• EPS (TTM): 1.09
• Shares Outstanding: 676,865,050
• 10 Day Avg. Volume: 4,709,263
• 30 Day Avg. Volume: 5,750,135
• PEG Ratio: -1.34
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.17
• 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

• Rating: 72 Outperform
• Price Target: HK$13.00 ▲(12.46%Upside)

Dream International's stock score is driven by strong financial performance and attractive valuation metrics. The robust balance sheet and efficient operations boost confidence, while the low P/E ratio and high dividend yield provide substantial value for investors. However, technical indicators suggest caution due to overbought conditions, which could lead to a short-term price correction.

Dream International Business Overview & Revenue Model

Company Description

Dream International Limited (1126) is a leading global manufacturer of plush stuffed toys, plastic figures, and ride-on toys. The company operates in various sectors, primarily focusing on the design, development, and production of high-quality toys for well-known international brands. With a commitment to safety and innovation, Dream International caters to a diverse clientele, offering a wide range of products that meet international quality standards.

How the Company Makes Money

Dream International generates revenue primarily through the manufacturing and sale of plush stuffed toys, plastic figures, and ride-on toys. The company partners with major global brands, producing licensed products that capitalize on popular characters and franchises. A significant portion of its income comes from long-term contracts and orders from these key partners. Additionally, Dream International benefits from its ability to maintain cost efficiency in production while adhering to strict quality controls, enabling competitive pricing. The company's diversified product portfolio and strong relationships with international clients contribute significantly to its revenue streams.

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: Positive
• Last Price: 11.56
• 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 Positive. The current price of 11.56 is above the 20-day moving average (MA) of 9.07, above the 50-day MA of 7.08, and above the 200-day MA of 5.36, indicating a bullish trend. The MACD of 0.97 indicates Positive momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 33.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1126.

Dream International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0869	73 Outperform	HK$637.20M	4.84	11.10%	7.41%	-16.05%	-41.16%
1126	72 Outperform	$6.81B	9.22	19.30%	7.95%	1.82%	-11.00%
1086	68 Neutral	$1.90B	5.34	6.23%	6.14%	10.58%	74.84%
Sector *	56 Neutral	$3.37B	4.05	-1.30%	6.64%	0.16%	-63.79%
0635	53 Neutral	$1.08B	―	-7.27%	5.77%	-14.11%	-3796.00%
1005	46 Neutral	HK$340.29M	―	-43.56%	5.56%	-36.06%	-190.94%
6918	39 Underperform	HK$72.45M	―	-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.

Dream International Limited Announces Key Resolutions for Upcoming AGM

Dream International Limited has announced its Annual General Meeting scheduled for May 9, 2025, where it will address several key business matters. These include the adoption of financial statements for the year ended December 31, 2024, the declaration of a final dividend, re-elections of directors, and the re-appointment of KPMG as auditor. Additionally, the company seeks approval to authorize directors to allot and issue shares, which could impact its capital structure and shareholder value.