Dream International (1126) H2 2024 earnings summary

Executive summary

• Revenue rose to HK$5,450.0 million for 2024, up from HK$5,352.5 million year-over-year, driven by plush stuffed toys and plastic figures.

• Net profit attributable to shareholders was HK$738.5 million, down from HK$829.8 million, with net margin at 13.6%.

• Gross profit margin declined to 23.0% from 25.1% due to intensified competition and cost pressures.

• Final dividend proposed at HK40 cents per share, up from HK35 cents, reflecting confidence in financial health.

• Maintained strong liquidity and cash position, with cash and equivalents at HK$1,407.9 million.

Financial highlights

• Operating profit was HK$932.3 million, down from HK$1,039.5 million year-over-year.

• Earnings per share (basic and diluted) were HK109.11 cents, compared to HK122.60 cents last year.

• Net current assets increased to HK$2,602.8 million from HK$2,326.1 million.

• Gearing ratio remained low at 2.5%, with bank loans at HK$99.6 million.

• Total comprehensive income for the year was HK$654.5 million, down from HK$811.7 million.

Outlook and guidance

• Modest growth expected in the global toy market for 2025, with focus on US and Asia.

• Plans to deepen collaboration with major customers and expand smart, interactive product lines.

• New production facility in Indonesia to be operational by mid-2025, enhancing geographic diversification.

• Continued investment in automation and supply chain management to boost efficiency and resilience.

• Ongoing commitment to sustainability, including use of recycled materials and ESG compliance.