Dream International (1126) H1 2025 earnings summary

Executive summary

• Revenue increased by 12.4% year-over-year to HK$2,578.3 million for the six months ended 30 June 2025, driven by strong demand in North America and Asia and order shifts to Vietnam due to tariffs.

• Net profit attributable to shareholders rose to HK$307.0 million, with a net profit margin of 11.9%.

• Interim dividend of HK25 cents per share declared, up from HK20 cents in the prior year period.

• Gross profit margin declined to 20.1% from 24.0% due to higher labor costs and aggressive order acquisition in plastic figures.

Financial highlights

• Gross profit was HK$517.6 million, with a gross margin of 20.1%, down from 24.0% due to higher labor costs and aggressive order acquisition in plastic figures.

• Cash and cash equivalents plus current bank deposits totaled HK$1,577.1 million as of 30 June 2025.

• Net current assets stood at HK$2,614.4 million, and gearing ratio was 1.5%.

• Earnings per share were HK$0.454, up from HK$0.412 year-over-year.

• Interim dividend: HK25 cents per share (prior year: HK20 cents).

Outlook and guidance

• Geopolitical tensions and US tariff policies are expected to continue impacting the industry in the second half of 2025.

• Plans to open additional factories in Vietnam and Indonesia to meet growing demand, especially from Asia and the US.

• Focus on operational excellence, automation, and local sourcing to enhance efficiency and flexibility.