Dream International (1126) H2 2025 earnings summary

Executive summary

• Revenue rose to HK$5,974.4 million for 2025, up 9.6% year-over-year, driven by strong demand for plush stuffed toys and plastic figures.

• Net profit attributable to shareholders was HK$692.9 million, down 6.2% year-over-year, with a net margin of 11.6%.

• Gross profit margin declined to 20.2% from 23.0% due to higher labor costs and production adjustments.

• Final dividend proposed at HK35 cents per share, down from HK40 cents last year.

• Maintained strong relationships with major brands and licensors, leveraging multi-regional production and product diversity.

Financial highlights

• Revenue: HK$5,974.4 million (2024: HK$5,450.0 million).

• Gross profit: HK$1,205.9 million (2024: HK$1,253.9 million); gross margin 20.2%.

• Net profit: HK$692.9 million (2024: HK$738.5 million); net margin 11.6%.

• Cash and cash equivalents: HK$1,658.4 million (2024: HK$1,407.9 million).

• Gearing ratio: 1.0% (2024: 2.5%).

Outlook and guidance

• Expects growth in licensed toys from new entertainment activities in 2026, but faces uncertainties from trade barriers and geopolitical tensions.

• Plans to expand production capacity with new plants in China and Vietnam, and a second-phase expansion in Indonesia by June 2026.

• Focus on product mix upgrade, supply chain localisation, and ESG integration.