Dream International (1126) AI Stock Analysis

• Market Cap: $4.20B
• Dividend Yield: 23.45%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.34
• Revenue Growth: 1.82%
• EPS Growth: -11.00%
• Country: HK
• Employees: 28,697
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Leisure
• EPS (TTM): 1.09
• Shares Outstanding: 676,865,050
• 10 Day Avg. Volume: 579,300
• 30 Day Avg. Volume: 1,176,724
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Dream International has a strong financial position with efficient operations and robust equity. Despite challenges in profit margins and free cash flow, the company's low P/E ratio and high dividend yield make it an attractive investment. Technical indicators suggest bearish momentum, which may pose short-term risks.

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
	EBIT
932.27M	1.04B	804.74M	229.64M	292.98M
	EBITDA
1.12B	1.21B	991.05M	403.47M	498.30M
	Net Income Common Stockholders
738.50M	829.85M	687.10M	193.56M	272.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.61B	1.39B	761.64M	601.15M	665.40M
	Total Assets
4.96B	4.61B	4.38B	4.20B	3.55B
	Total Debt
142.98M	125.51M	256.88M	298.39M	299.62M
	Net Debt
-1.26B	-1.14B	-412.38M	-84.60M	-189.46M
	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: 6.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 6.4 is above the 20-day moving average (MA) of 5.45, above the 50-day MA of 5.80, and above the 200-day MA of 4.96, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 90.15 is Negative, 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
2020	81 Outperform	$260.81B	15.55	28.11%	2.43%	11.51%	47.88%
1126	72 Outperform	$4.20B	5.69	19.30%	23.45%	1.82%	-11.00%
1038	71 Outperform	$125.52B	16.15	6.62%	4.84%	-16.64%	1.10%
1910	69 Neutral	$19.83B	7.86	23.28%	5.67%	-2.87%	-18.65%
1199	63 Neutral	$15.76B	6.00	5.64%	5.89%	5.93%	-3.64%
Sector *	61 Neutral	$6.69B	11.69	3.01%	3.94%	2.60%	-21.51%
2312	41 Neutral	HK$31.91M	―	-2.95%	―	50.91%	81.77%

Dream International Corporate Events

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.

Dream International Reports 2024 Financial Results

Dream International Limited announced its financial results for the year ended December 31, 2024, reporting a slight increase in revenue to HK$5,449,987,000 compared to the previous year. However, the company’s profit for the year decreased to HK$738,497,000 from HK$829,847,000 in 2023, reflecting higher administrative expenses and a decline in other net income. The total comprehensive income also saw a reduction, impacted by exchange differences on translation of financial statements of subsidiaries outside Hong Kong. Despite these challenges, Dream International continues to maintain a strong presence in the toy manufacturing industry.

Dream International Announces Final Dividend for 2024

Dream International Limited, a company listed on the Hong Kong Stock Exchange, has announced a final ordinary cash dividend of HKD 0.4 per share for the financial year ending December 31, 2024. The dividend will be paid on May 30, 2025, following shareholder approval on May 9, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Dream International Schedules Board Meeting for Annual Results

Dream International Limited has announced that its board of directors will meet on March 28, 2025, to consider and approve the company’s annual financial results for the year ending December 31, 2024. The meeting will also address the recommendation of a final dividend and other business matters, indicating a focus on financial performance and shareholder returns.