Playmates Holdings (0635) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: 8.49%
• Average Volume (3M): 204.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -39.71%
• EPS Growth: -74.16%
• Country: HK
• Employees: 83
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.10
• Shares Outstanding: 2,068,000,000
• 10 Day Avg. Volume: 184,400
• 30 Day Avg. Volume: 204,433
• PEG Ratio: <0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 5.31
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: -3.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.50 ▼(-7.41% Downside)

The overall stock score of 55 reflects significant financial challenges, particularly in revenue and profitability, which weigh heavily on the score. Technical analysis provides a more positive outlook with potential upward trends, while valuation is mixed due to a high dividend yield but negative P/E ratio. The absence of earnings call and corporate events data limits further insights.

Playmates Holdings Business Overview & Revenue Model

Company Description

Playmates Holdings Limited, an investment holding company, primarily engages in the creation, design, development, marketing, and distribution of toys in Hong Kong, the Americas, Europe, the rest of the Asia Pacific, and internationally. It operates through three segments: Property Investments and Associated Businesses, Investment Business, and Toy Business. The Property Investments and Associated Businesses segment invests in and leases commercial, industrial, and residential premises for rent; and provides property management services, such as repair and maintenance, building security, general cleaning for common areas, hand-over and take-over of premises, and the monitoring of reinstatement and refurbishment works. The Investment Business segment invests in financial instruments, including listed equity and managed funds. The Toy Business segment designs, develops, markets, and distributes toys and family entertainment activity products. Playmates Holdings Limited was founded in 1966 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Playmates Holdings generates revenue through multiple streams, primarily from the sale of toys and games, which are distributed globally. The company benefits significantly from licensing its established brands to third-party manufacturers and media producers, creating a steady income through royalties. Additionally, Playmates Holdings engages in strategic partnerships with entertainment companies to develop merchandise related to popular film and television franchises, which boosts its visibility and sales. Seasonal demand for toys, especially around holidays, further enhances the company's earnings, as does their ability to innovate and refresh product lines to attract consumers.

Playmates Holdings Financial Statement Overview

Summary

Playmates Holdings is facing financial challenges, particularly in revenue generation and profitability. The income statement shows declining revenues and significant losses. The balance sheet remains strong with low leverage, but the negative return on equity is concerning. Cash flow issues are evident, with the company failing to generate positive operating or free cash flow in the latest year. Overall, the company needs to address its revenue and profitability issues to improve its financial health.

Income Statement

The company has experienced a decline in revenue and profitability. The revenue decreased from 2023 to 2024, marking a 14.09% decline. Gross profit margin also deteriorated from 61.64% in 2023 to 59.10% in 2024. Net profit margin turned negative in 2024 at -35.00%, showing significant losses compared to a positive margin in 2023. EBIT and EBITDA margins have similarly turned negative, indicating operational challenges.

Balance Sheet

The company's balance sheet shows a relatively strong equity position with an equity ratio of 82.48% in 2024. The debt-to-equity ratio is low at 0.04, indicating low leverage. However, the return on equity is negative due to net losses, which is a concern despite the strong equity base.

Cash Flow

The cash flow statement indicates a lack of positive cash flow generation, with operating cash flow at zero in 2024. This is a significant drop from 2023, where there was a positive operating cash flow. Free cash flow also turned negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	826.67M	1.09B	1.27B	719.63M	860.76M	536.32M
Gross Profit	468.18M	645.48M	784.08M	438.06M	523.88M	370.71M
EBITDA	-153.97M	-231.73M	203.44M	-146.63M	23.57M	-449.19M
Net Income	-427.97M	-382.28M	10.34M	-212.78M	-49.43M	-507.60M
Balance Sheet
Total Assets	5.74B	6.07B	6.78B	6.65B	7.54B	7.45B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.21B	1.19B	1.22B	1.63B	1.56B
Total Debt	140.91M	181.65M	237.81M	349.08M	798.94M	742.08M
Total Liabilities	435.41M	472.56M	711.52M	592.86M	1.13B	952.27M
Stockholders Equity	4.76B	5.00B	5.49B	5.57B	5.92B	6.03B
Cash Flow
Free Cash Flow	105.94M	222.12M	170.55M	192.26M	127.52M	76.96M
Operating Cash Flow	107.49M	225.71M	172.88M	211.09M	159.87M	97.46M
Investing Cash Flow	297.24M	120.40M	-551.23M	-23.21M	-44.20M	-18.04M
Financing Cash Flow	-188.78M	-197.27M	-229.76M	-568.26M	-122.71M	-141.27M

Playmates Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0635, the sentiment is Positive. The current price of 0.54 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.52, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0635.

Playmates Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0114	73 Outperform	HK$350.60M	10.66	5.68%	10.34%	-1.07%	―
0869	63 Neutral	$637.20M	43.90	1.28%	12.73%	-44.36%	-93.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0635	55 Neutral	$1.10B	-2.56	-8.58%	8.49%	-39.71%	-74.16%
1005	47 Neutral	HK$393.23M	-1.73	-37.46%	3.85%	-13.08%	-21.27%
3830	46 Neutral	HK$56.00M	―	-31.72%	―	-8.50%	4.11%
6918	41 Neutral	HK$149.15M	―	-19.89%	―	84.26%	44.41%

Playmates Holdings Corporate Events

Playmates Holdings Enhances Board Governance with Nomination Committee Terms

Playmates Holdings Limited has outlined the terms of reference for its Nomination Committee, which is composed of a majority of independent non-executive directors and includes at least one director of a different gender. The committee is tasked with reviewing the board’s structure, identifying qualified board members, assessing the independence of directors, and supporting board performance evaluations. This announcement underscores the company’s commitment to maintaining a diverse and effective board, which is crucial for aligning with its corporate strategy and ensuring robust governance practices.

Playmates Holdings Reports Decline in Revenue and Increased Losses for H1 2025

Playmates Holdings Limited reported a significant decline in revenue and increased losses for the first half of 2025 compared to the same period in 2024. The company’s revenue dropped from HK$526.7 million to HK$261.1 million, with the toy business experiencing the largest decline. The property investments and management segment also saw a decrease in revenue and rental income, with a net revaluation deficit on investment properties contributing to the operating loss. Despite challenges in the commercial and residential property markets, the company remains optimistic about the long-term value of its properties, particularly with ongoing renovations and potential conversions of industrial properties.

Playmates Holdings Declares Interim Dividend for 2025

Playmates Holdings Limited has announced an interim ordinary cash dividend of HKD 0.015 per share for the six months ending June 30, 2025. This financial move, declared for the fiscal year ending December 31, 2025, reflects the company’s ongoing commitment to providing shareholder value. The dividend will be paid on September 19, 2025, with the ex-dividend date set for August 28, 2025, and a record date of September 2, 2025.

Playmates Holdings Announces Changes in Board Committees

Playmates Holdings Limited, a company incorporated in Bermuda, has announced changes in the composition of its Board Committees. Effective from August 15, 2025, Mr. Lee Ka Sze, Carmelo, a non-executive director, will no longer be a member of the Nomination Committee but will join the Compensation Committee. Meanwhile, Ms. Chan, Helen, an executive director, has been appointed to the Nomination Committee. These changes reflect a strategic realignment of the company’s governance structure, potentially impacting its decision-making processes and stakeholder engagement.

Playmates Holdings Updates Board and Committee Roles

Playmates Holdings Limited has announced the composition of its Board of Directors and the roles within its three main committees: Audit, Compensation, and Nomination. This organizational update reflects the company’s governance structure, which is crucial for maintaining effective oversight and strategic direction.

Playmates Holdings Issues Profit Warning Amid Revenue Decline

Playmates Holdings Limited has issued a profit warning, indicating a significant decline in financial performance for the first half of 2025. The company reported an unaudited revenue of approximately HK$261 million, down from HK$527 million in the same period of 2024, and expects a net loss of about HK$218 million. This downturn is primarily due to a revaluation deficit in the company’s investment properties and poor performance from its major subsidiary, Playmates Toys Limited, which also reported a substantial drop in revenue and a net loss for the period. Shareholders and investors are advised to exercise caution as the company finalizes its interim financial statements.

Playmates Holdings to Review Interim Results and Dividend

Playmates Holdings Limited has announced that its board of directors will meet on August 15, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders.