Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>We met with the management of <a href="https://www.smartkarma.com/entities/dream-international-ltd" target="_blank" data-smartkarma-citation="entities:15783:1" rel="noopener">Dream International (1126 HK)</a> in Hong Kong. The company is riding a hectic phase with its Vietnam operations running at full capacity.</li>
<li>Management is evaluating capacity expansion in Indonesia and Vietnam for plastic and plush toy production serving China, targeting an aggregate capacity increase of approximately 20–30% to meet demand.</li>
<li>The stock has pulled back and trades at 8.9x PE, 5.1 EV-EBITDA, with a 6.2% dividend yield and 21% of the market capitalization in cash, and 10 Yr-Avg ROCE ~20%. </li>
</ul>


We met with the management of Dream International (1126 HK) in Hong Kong. The company is riding a hectic phase with its Vietnam operations running at full capacity.
Management is evaluating capacity expansion in Indonesia and Vietnam for plastic and plush toy production serving China, targeting an aggregate capacity increase of approximately 20–30% to meet demand.
The stock has pulled back and trades at 8.9x PE, 5.1 EV-EBITDA, with a 6.2% dividend yield and 21% of the market capitalization in cash, and 10 Yr-Avg ROCE ~20%. 


Dream International (1126 HK): Postcard From Hong Kong, October 2025

<ul>
<li>We believe that toymakers are experiencing a bubble like rally led by <a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart International Group L (9992 HK) </a>and <a href="https://www.smartkarma.com/entities/hasbro-inc" target="_blank" data-smartkarma-citation="entities:18204:1" rel="noopener">Hasbro Inc (HAS US)</a> which raised forecasts recently. </li>
<li>
<a href="https://www.smartkarma.com/entities/dream-international-ltd" target="_blank" data-smartkarma-citation="entities:15783:1" rel="noopener">Dream International (1126 HK)</a> has returned &gt;200% since liberation day tariffs were declared on April 2nd 2025 and now trades at 12.7x trailing earnings (vs 3.7x when we initiated). </li>
<li>
<strong> "Never look a gift horse in the mouth" !</strong> .We would take some money off the table here as toy stocks go through periods of cyclicality due restocking/destocking.</li>
</ul>


We believe that toymakers are experiencing a bubble like rally led by Pop Mart International Group L (9992 HK) and Hasbro Inc (HAS US) which raised forecasts recently. 

Dream International (1126 HK) has returned &gt;200% since liberation day tariffs were declared on April 2nd 2025 and now trades at 12.7x trailing earnings (vs 3.7x when we initiated). 

 "Never look a gift horse in the mouth" ! .We would take some money off the table here as toy stocks go through periods of cyclicality due restocking/destocking.


Dream International (1126 HK): Riding the Popmart Bubble

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

52TOYS Development / Equity Capital Markets

<ul>
<li>52TOYS Development, a Beijing-based multi-genre IP toy company, is seeking Hong Kong IPO that would raise up to $200M.</li>
<li>Founded in 2012 by Mr. Chen and Mr. Huang, 52TOYS positions itself as a toymaker with a strong emphasis on collectible mecha and sci-fi aesthetics.</li>
<li>52TOYS has made a big push online and in overseas markets. I believe the company has primary growth drivers such as international expansion and new licensed and proprietary IP products.</li>
</ul>


52TOYS Development, a Beijing-based multi-genre IP toy company, is seeking Hong Kong IPO that would raise up to $200M.
Founded in 2012 by Mr. Chen and Mr. Huang, 52TOYS positions itself as a toymaker with a strong emphasis on collectible mecha and sci-fi aesthetics.
52TOYS has made a big push online and in overseas markets. I believe the company has primary growth drivers such as international expansion and new licensed and proprietary IP products.


52TOYS Development IPO Preview: A “Must Own” Stock, Big Push In Overseas Markets Looks Promising

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Pop Mart (9992 HK)'s share price is down 33% from its peak levels in late August 2025. Going forward, we expect further downside risk on Pop Mart.</li>
<li>We highlight the growing concerns about the declining resale values of Labubu. After reaching their peak prices in this summer, the resale prices of Labubu dolls have continued to drop.</li>
<li>Its share price declining below the critical HK$250 support on big volumes suggest negative technicals on this stock. </li>
</ul>


Pop Mart (9992 HK)'s share price is down 33% from its peak levels in late August 2025. Going forward, we expect further downside risk on Pop Mart.
We highlight the growing concerns about the declining resale values of Labubu. After reaching their peak prices in this summer, the resale prices of Labubu dolls have continued to drop.
Its share price declining below the critical HK$250 support on big volumes suggest negative technicals on this stock. 


Pop Mart International: Increasing Concerns About Resale Price Declines

<ul>
<li>Bloks Group shares returned ~47% for IPO investors as of today, trailing the HSI’s 30% gain. The stock peaked at HK$190+ and fell ~55% over the following four months.</li>
<li>Shares saw pressure after lockup restrictions expired in July. Until this month, the lockup provision had prevented the majority shareholder and other early investors from selling their shares. </li>
<li>The company’s revenue grew ~28% YoY in the first half of 2025, raising potential concerns of continued slowdown in sales of assembly character toys. Expect stock underperformance to continue.</li>
</ul>


Bloks Group shares returned ~47% for IPO investors as of today, trailing the HSI’s 30% gain. The stock peaked at HK$190+ and fell ~55% over the following four months.
Shares saw pressure after lockup restrictions expired in July. Until this month, the lockup provision had prevented the majority shareholder and other early investors from selling their shares. 
The company’s revenue grew ~28% YoY in the first half of 2025, raising potential concerns of continued slowdown in sales of assembly character toys. Expect stock underperformance to continue.


Bloks Group (0325.HK): Stock Premium Is Not Justified, Growth Has Slowed, ~30% Downside

United States

Hasbro, Inc. designs, manufactures, and markets toys, games, interactive software, puzzles, and infant products in the United States and internationally. The Company's products include a variety of games, including traditional board, card, hand-held electronic, trading card, role-playing and DVD games, as well as electronic learning aids and puzzles as well as dolls and action figures.

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Hasbro Inc (HAS US)

Dream International (1126 HK): Postcard From Hong Kong, October 2025

Meeting summary with the Dream International (1126 HK) management in Hong Kong. Recent share pullback values stock at ~8.9x P/E with a ~6.2%...

Sameer Taneja

Dream International (1126 HK): Riding the Popmart Bubble

We try to make sense of the recent rally in Dream International (1126 HK). The stock has been on a tear and is up over 200% since liberation day...

Sameer Taneja

52TOYS Development IPO Preview: A “Must Own” Stock, Big Push In Overseas Markets Looks Promising

Beijing-based 52TOYS Development filed to go public in Hong Kong. I like the toymaker's diversified IP product portfolio, scalable business model...

Andrei Zakharov

Pop Mart International: Increasing Concerns About Resale Price Declines

Pop Mart (9992 HK)'s share price is down 33% from its peak levels in late August 2025. Going forward, we expect further downside risk on Pop Mart.

Douglas Kim

Bloks Group (0325.HK): Stock Premium Is Not Justified, Growth Has Slowed, ~30% Downside

Bloks Group shares significantly underperformed over the last four months as IPO lockup expired and growth slowed in 2025. However, the stock...

Andrei Zakharov

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dream International (1126 HK): Postcard From Hong Kong, October 2025

Meeting summary with the Dream International (1126 HK) management in Hong Kong. Recent share pullback values stock at ~8.9x P/E with a ~6.2%...

Sameer Taneja

Dream International (1126 HK): Riding the Popmart Bubble

We try to make sense of the recent rally in Dream International (1126 HK). The stock has been on a tear and is up over 200% since liberation day...

Sameer Taneja

52TOYS Development IPO Preview: A “Must Own” Stock, Big Push In Overseas Markets Looks Promising

​Beijing-based 52TOYS Development filed to go public in Hong Kong. I like the toymaker's diversified IP product portfolio, scalable business model...

Andrei Zakharov

Pop Mart International: Increasing Concerns About Resale Price Declines

Pop Mart (9992 HK)'s share price is down 33% from its peak levels in late August 2025. Going forward, we expect further downside risk on Pop Mart.

Douglas Kim

Bloks Group (0325.HK): Stock Premium Is Not Justified, Growth Has Slowed, ~30% Downside

​Bloks Group shares significantly underperformed over the last four months as IPO lockup expired and growth slowed in 2025. However, the stock...

Andrei Zakharov

Beijing-based 52TOYS Development filed to go public in Hong Kong. I like the toymaker's diversified IP product portfolio, scalable business model...

Bloks Group shares significantly underperformed over the last four months as IPO lockup expired and growth slowed in 2025. However, the stock...