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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

(OTC:1126)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
HK$15.00
▲(17.74% Upside)
Dream International's overall score is driven by its strong financial performance, particularly its robust balance sheet and efficient operations. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. However, technical indicators suggest mixed momentum, with short-term bearish signals offset by longer-term bullish trends. The absence of recent earnings call insights and corporate events limits additional context.

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

Dream International Business Overview & Revenue Model

Company DescriptionDream 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 MoneyDream 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
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.45B5.35B6.25B4.80B3.78B
Gross Profit1.25B1.34B1.23B614.72M660.61M
EBITDA1.12B1.21B991.05M403.47M498.30M
Net Income738.50M829.85M687.10M193.56M272.78M
Balance Sheet
Total Assets4.96B4.61B4.38B4.20B3.55B
Cash, Cash Equivalents and Short-Term Investments1.61B1.39B761.64M601.15M665.40M
Total Debt142.98M125.51M256.88M298.39M299.62M
Total Liabilities998.42M933.80M1.18B1.53B986.36M
Stockholders Equity3.96B3.68B3.21B2.67B2.56B
Cash Flow
Free Cash Flow532.13M1.08B420.98M11.14M111.48M
Operating Cash Flow744.79M1.16B621.41M210.09M336.81M
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 Price12.74
Price Trends
50DMA
13.85
Negative
100DMA
11.29
Positive
200DMA
8.19
Positive
Market Momentum
MACD
-0.23
Positive
RSI
42.38
Neutral
STOCH
0.71
Positive
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 12.74 is below the 20-day moving average (MA) of 13.25, below the 50-day MA of 13.85, and above the 200-day MA of 8.19, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 0.71 is Positive, 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
69
Neutral
$8.62B11.2519.99%5.10%11.18%-1.06%
68
Neutral
HK$2.17B7.865.38%7.94%-24.24%
63
Neutral
HK$672.60M46.3410.96%12.28%-44.36%-93.64%
53
Neutral
HK$1.08B-2.518.65%-39.71%-74.16%
48
Neutral
HK$142.40M-1.87-21.34%84.26%44.41%
46
Neutral
HK$385.66M-1.70-58.89%3.92%-13.08%-21.27%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1126
Dream International
12.74
8.76
220.18%
HK:1086
Goodbaby International Holdings
1.30
0.45
53.30%
HK:0869
Playmates Toys
0.57
>-0.01
-1.55%
HK:0635
Playmates Holdings
0.52
>-0.01
-0.57%
HK:1005
Matrix Holdings Limited
0.51
-0.04
-7.27%
HK:6918
Kidztech Holdings Ltd.
0.19
0.00
0.00%

Dream International Corporate Events

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.

Dream International Announces Board Composition and Roles
Jun 30, 2025

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
Jun 30, 2025

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.

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: Sep 19, 2025