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Dream International
(1126)
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Rating:82Outperform
Price Target:
HK$7.00
â–²(0.86% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial quality (especially a very conservative balance sheet) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by softer recent cash flow momentum and 2025 margin compression, while technical indicators are broadly neutral.
Positive Factors
Revenue Re-acceleration
Revenue re-acceleration in 2025 indicates demand remained resilient after a period of limited growth. For an OEM/ODM supplier, renewed order activity can support factory utilization, customer program continuity, and operating leverage over the next several quarters.
Negative Factors
Margin Compression
Broad margin compression in 2025 suggests profitability is sensitive to product mix, manufacturing costs, pricing, or operating efficiency. If sustained, lower margins would reduce earnings conversion from revenue and limit the benefit of future sales growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Re-acceleration
Revenue re-acceleration in 2025 indicates demand remained resilient after a period of limited growth. For an OEM/ODM supplier, renewed order activity can support factory utilization, customer program continuity, and operating leverage over the next several quarters.
Read all positive factors
Dream International (1126) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.19B
Dividend Yield9.69%
Average Volume (3M)657.18K
Price to Earnings (P/E)7.1
Beta (1Y)0.53
Revenue Growth9.74%
EPS Growth-22.94%
CountryHK
Employees32,668
SectorGeneral
Sector StrengthN/A
IndustryLeisure
Share Statistics
EPS (TTM)0.87
Shares Outstanding676,865,050
10 Day Avg. Volume469,850
30 Day Avg. Volume657,182
Financial Highlights & Ratios
PEG Ratio-1.25
Price to Book (P/B)1.32
Price to Sales (P/S)0.93
P/FCF Ratio8.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Dream International Business Overview & Revenue Model
Company Description
Dream International Limited functions as an investment holding company, specializing in the worldwide design, development, production, and distribution of toys. Its broad market presence spans Hong Kong, North America, Japan, Europe, mainland Chin...
How the Company Makes Money
Dream International makes money mainly by manufacturing and supplying toys and related products to third-party brand owners and retailers under OEM/ODM arrangements. Revenue is generated from (1) mass production and shipment of finished goods, whe...
Dream International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.29B | 5.97B | 5.45B | 5.35B | 6.25B | 4.80B |
| Gross Profit | 1.13B | 1.21B | 1.25B | 1.34B | 1.23B | 614.72M |
| EBITDA | 819.66M | 967.22M | 1.12B | 1.21B | 1.03B | 448.51M |
| Net Income | 590.86M | 692.90M | 738.50M | 829.85M | 687.10M | 193.56M |
Balance Sheet | ||||||
| Total Assets | 5.48B | 5.55B | 4.96B | 4.61B | 4.38B | 4.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.37B | 1.80B | 1.61B | 1.39B | 761.64M | 601.15M |
| Total Debt | 128.06M | 121.45M | 142.98M | 125.51M | 256.88M | 298.39M |
| Total Liabilities | 1.26B | 1.34B | 998.42M | 933.80M | 1.18B | 1.53B |
| Stockholders Equity | 4.21B | 4.20B | 3.96B | 3.68B | 3.21B | 2.67B |
Cash Flow | ||||||
| Free Cash Flow | 446.18M | 651.71M | 541.14M | 1.08B | 420.98M | 11.14M |
| Operating Cash Flow | 545.58M | 859.62M | 744.79M | 1.16B | 621.41M | 210.09M |
| Investing Cash Flow | -146.44M | -79.04M | -203.66M | -71.95M | -78.29M | -204.06M |
| Financing Cash Flow | -209.16M | -535.00M | -379.21M | -489.05M | -233.73M | -101.83M |
Dream International Technical Analysis
Negative
6.94
Price Trends
6.65
Negative
6.70
Negative
7.35
Negative
Market Momentum
-0.10
Positive
38.68
Neutral
5.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1126, the sentiment is Negative. The current price of 6.94 is above the 20-day moving average (MA) of 6.52, above the 50-day MA of 6.65, and below the 200-day MA of 7.35, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 5.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1126.
Dream International Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$4.19B | 7.11 | 14.04% | 9.69% | 9.74% | -22.94% | |
80 Outperform | HK$200.97B | 13.41 | 57.49% | 1.78% | 86.78% | 101.48% | |
71 Outperform | HK$1.54B | 4.13 | 6.09% | 26.60% | 0.34% | 40.53% | |
56 Neutral | HK$1.03B | -4.18 | -5.52% | 9.00% | -18.78% | 42.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | HK$533.45M | -73.44 | -0.68% | 14.89% | -23.66% | -152.03% | |
49 Neutral | HK$185.36M | -0.78 | -14.23% | 1.22% | 4.04% | -16.43% |
* General Sector Average
HK:1126
Dream International
6.19
-6.69
-51.93%
HK:1086
Goodbaby International Holdings
0.94
-0.16
-14.78%
HK:0869
Playmates Toys
0.47
-0.13
-21.67%
HK:0635
Playmates Holdings
0.50
0.02
5.04%
HK:0180
Kader Holdings Co. Ltd.
0.20
-0.02
-8.02%
HK:9992
Pop Mart International Group Limited
153.20
-109.35
-41.65%
Dream International Corporate Events
Dream International Strengthens Board Governance Through Defined Nomination Committee Mandate
Aug 26, 2026
Dream International Limited has detailed the structure and mandate of its Nomination Committee, which was established in 2012 and comprises a majority of independent non-executive directors and at least one member of a different gender. The commit...
Dream International Sets Out Remuneration Committee Mandate and Governance Safeguards
Aug 26, 2026
Dream International Limited has detailed the composition and mandate of its remuneration committee, chaired by independent non-executive director Dr. Chan Yoo and including both independent and executive members. The committee is empowered to cons...
Dream International Delivers Higher Revenue but Weaker Profits in First Half of 2026
Aug 26, 2026
Dream International reported a rise in revenue to HK$2.90 billion for the six months ended 30 June 2026, up from HK$2.58 billion a year earlier, but profitability weakened as gross profit fell and margins tightened. Profit attributable to equity s...
Dream International Declares Interim Dividend for First Half of 2026
Aug 26, 2026
Dream International Limited has declared an interim ordinary cash dividend of HKD 0.25 per share for the six months ended 30 June 2026, for the financial year ending 31 December 2026. The decision underscores the company’s commitment to retu...
Dream International Revamps Board as CFO Steps Down
Aug 26, 2026
Dream International has reshuffled its senior leadership, appointing veteran executive Hyun Ho Kim as executive director, board committee member and authorised representative, effective 26 August 2026. Kim, who previously served on the board and c...
Dream International Clarifies Board and Committee Structure
Aug 26, 2026
Dream International Limited has outlined the current composition of its board, which is chaired by executive director Kyoo Yoon Choi and supported by fellow executives Hyunjoo Kim, Hyun Ho Kim and Jae Seng Yu alongside three independent non-execut...
Dream International Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 14, 2026
Dream International Limited has announced that its board of directors will convene a meeting on 26 August 2026 at the company’s registered office in Hong Kong. The session is scheduled to review and approve the group’s interim financia...
Dream International warns of profit slump on rising costs
Aug 12, 2026
Dream International has warned shareholders and potential investors that its unaudited consolidated management accounts indicate a significant drop in profitability for the first half of 2026. The group expects net profit for the six months ended ...
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.