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Dream International (1126) AI Stock Analysis
Dream International
(HKEX:1126)
Strong financial performance with revenue growth and healthy balance sheet, plus attractive valuation from low P/E and high yield, drive the score; mixed technical indicators with positive momentum but below long-term averages temper the outlook.
Dream International (1126) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 507.65M
- Dividend Yield
- 11.32%
- Average Volume (3M)
- 544.16K
- Price to Earnings (P/E)
- 6.1
- Beta (1Y)
- 0.71
- Revenue Growth
- 9.74%
- EPS Growth
- -22.82%
- Country
- Hong Kong
- Employees
- 32,668
- Sector
- General
- Sector Strength
- 55
- Industry
- Leisure
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 China,...
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, where...
Dream International Financial Statement Overview
Summary
Strong revenue growth to HKD 5.97 billion, solid profitability with 11.6% net margin, healthy balance sheet with low debt-to-equity of 0.029 and growing equity to HKD 4.20 billion, robust operating cash flow of HKD 859.6 million but with some free cash flow decline and inconsistencies.
Income Statement
82Very PositiveBalance Sheet
88Very PositiveCash Flow
75Positive| 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 | 839.14M | 1.00B | 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 | 305.42M | 651.71M | 541.14M | 1.08B | 420.98M | 11.14M |
| Operating Cash Flow | 509.70M | 859.62M | 744.79M | 1.16B | 621.41M | 210.09M |
| Investing Cash Flow | -227.32M | -79.04M | -203.66M | -71.95M | -78.29M | -204.06M |
| Financing Cash Flow | -475.74M | -535.00M | -379.21M | -489.05M | -233.73M | -101.83M |
Dream International Technical Analysis
Price Trends
Market Momentum
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 5.30 is below the 20-day moving average (MA) of 5.46, below the 50-day MA of 5.84, and below the 200-day MA of 6.70, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1126.
Dream International Peers Comparison
Overall Rating
HK:999279Outperform- HK:112678Outperform
HK:108670Outperform
HK:086964.3Neutral
HK:063555Neutral
HK:018040Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:9992 | 79Outperform | HKD 177.66B | 11.73 | 57.49% | 2.02% | 86.78% | 101.48% |
| HK:1126 | 78Outperform | HKD 3.59B | 6.09 | 14.04% | 11.32% | 9.74% | -22.82% |
| HK:1086 | 70Outperform | HKD 2.32B | 6.08 | 6.09% | 18.05% | 0.34% | 40.53% |
| HK:0869 | 64Neutral | HKD 540.86M | -75.00 | -0.68% | 14.58% | -23.66% | -152.03% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| HK:0635 | 55Neutral | HKD 1.02B | -4.13 | -5.52% | 9.09% | -18.78% | 42.15% |
| HK:0180 | 40Underperform | HKD 215.78M | -0.91 | -14.23% | ― | 4.04% | -16.43% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1126 | Dream International | 5.30 | -3.57 | -40.21% | |
| HK:1086 | Goodbaby International Holdings | 1.39 | 0.47 | 50.87% | |
| HK:0869 | Playmates Toys | 0.48 | -0.06 | -11.11% | |
| HK:0635 | Playmates Holdings | 0.49 | 0.01 | 2.06% | |
| HK:0180 | Kader Holdings Co. Ltd. | 0.23 | 0.03 | 17.01% | |
| HK:9992 | Pop Mart International Group Limited | 134.90 | -87.75 | -39.41% |
Dream International Corporate Events
Dream International Strengthens Board Governance Through Defined Nomination Committee Mandate
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 committee...
Dream International Sets Out Remuneration Committee Mandate and Governance Safeguards
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 consult...
Dream International Delivers Higher Revenue but Weaker Profits in First Half of 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 shar...
Dream International Declares Interim Dividend for First Half of 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 returni...
Dream International Revamps Board as CFO Steps Down
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 curr...
Dream International Clarifies Board and Committee Structure
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-executive...
Dream International Sets Board Meeting to Approve Interim Results and Consider Dividend
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 financial r...
Dream International warns of profit slump on rising costs
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 30...
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: Aug 04, 2026