Investment Rating - The report maintains an "Accumulate" rating for the industry [1] Core Insights - The report highlights that Delin International, a leading manufacturer in the global trendy toys and plush toys sector, achieved a revenue of HKD 2.58 billion in H1 2025, representing a year-on-year increase of 12.4%. The net profit for the same period was HKD 307 million, up 10.1% year-on-year. The revenue growth is primarily driven by strong demand in North America and Asia, as well as growth in the plastic model business [6][12] - The gross margin and net profit margin for H1 2025 were 20.08% and 11.91%, respectively, reflecting a decrease of 3.91 percentage points and 0.25 percentage points year-on-year. The decline in gross margin is attributed to rising labor costs in Vietnam and the company's efforts to secure more plastic model orders [6][12] - The report indicates a positive outlook for the global trendy toy industry, with the market size for pan-entertainment toys in China expected to reach CNY 101.8 billion in 2024, a year-on-year increase of 43%. The industry is projected to grow at a CAGR of 15.8% from 2024 to 2029 [6][14] Summary by Sections Business Segments - Plush Toys: Revenue for H1 2025 reached HKD 1.324 billion, up 11.7% year-on-year, driven by stable demand from Asian theme park visitors [6][13] - Plastic Models: This segment generated revenue of HKD 1.069 billion in H1 2025, a 14.2% increase year-on-year, mainly due to strong demand in Asia and North America. The company expanded its product lines in collaboration with major clients, enhancing order value and market penetration [6][13] - Waterproof Covers: Revenue for this segment was HKD 185 million in H1 2025, up 7.8% year-on-year, primarily due to low inventory levels and a gradual recovery in orders, especially from the U.S. market [6][13] Regional Performance - North America: Revenue was HKD 1.047 billion, a year-on-year increase of 7.22% [6][13] - Japan: Revenue reached HKD 702 million, up 30.26% year-on-year [6][13] - Mainland China: Revenue was HKD 509 million, a slight decrease of 0.15% year-on-year [6][13] - Hong Kong: Revenue was HKD 173 million, up 19.78% year-on-year [6][13] Capacity and Production Layout - The company operates 28 factories, with 7 in China, 20 in Vietnam, and 1 in Indonesia, achieving an average utilization rate of approximately 84.7%. Plans are in place to establish one additional factory each in Vietnam and Indonesia in the second half of 2025 to meet the growing demand from Asian and U.S. markets [6][14]

Core Insights - The company achieved a revenue of 2.578 billion HKD in H1 2025, representing a growth of 12.39% year-on-year, with a net profit of 307 million HKD, up 10.10% [1][3] Financial Performance - Revenue growth was driven by a 51.4% contribution from plush toys, which generated 1.324 billion HKD, and a 14.2% increase in plastic model sales, totaling 1.069 billion HKD [1] - The overall SG&A expenses decreased by 3.73% to 211 million HKD, with an SG&A expense ratio of 8.20%, down 1.37 percentage points [1] - The company reported a gross margin of 20.08%, down 3.91 percentage points, and a net margin of 11.91%, slightly down by 0.25 percentage points [1] Regional Performance - Revenue from Hong Kong increased by 19.8% to 173 million HKD, while North America saw a 7.2% growth to 1.047 billion HKD [2] - Japan experienced a significant revenue increase of 30.3% to 702 million HKD, while mainland China saw a slight decline of 0.2% to 509 million HKD [2] - European revenue grew by 27.6% to 80 million HKD, and other regions contributed 67 million HKD, up 9.1% [2] Capacity Expansion - The company operates 28 factories, with a capacity utilization rate of 84.7%, and plans to add one factory each in Vietnam and Indonesia by the second half of 2025 [3] - The new factory in Indonesia is expected to provide cost advantages and enhance delivery capabilities for orders in Japan and the US [3] - The company aims to leverage its scale and design capabilities to maintain growth in revenue and profits [3] Investment Outlook - The company is expected to maintain steady growth in performance, with projected revenues of 6.230 billion HKD, 6.522 billion HKD, and 6.829 billion HKD for 2025-2027 [3] - Corresponding net profits are forecasted at 788 million HKD, 861 million HKD, and 944 million HKD for the same period [3] - The current PE ratios are estimated at 12.00, 10.99, and 10.01 for the respective years [3]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock price over the next six months [5]. Core Insights - The company has shown robust revenue growth of 12.39% year-on-year, reaching HKD 2.578 billion in the first half of 2025, despite a slight decline in gross margin [1]. - The company is expanding its production capacity, particularly in Indonesia, which is expected to enhance cost efficiency and support order fulfillment for markets like Japan and the USA [3]. - The anticipated revenue for 2025-2027 is projected to be HKD 62.30 billion, HKD 65.22 billion, and HKD 68.29 billion respectively, with net profits expected to grow steadily [3]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a net profit of HKD 307 million, reflecting a 10.10% increase, with a net profit margin of 11.91% [1]. - The SG&A expenses decreased to HKD 211 million, with an overall SG&A expense ratio of 8.20%, indicating improved operational efficiency [1]. Product Categories - Revenue from plush toys reached HKD 1.324 billion, growing by 11.7%, primarily driven by contributions from Asian theme parks [2]. - The plastic model segment generated HKD 1.069 billion in revenue, up 14.2%, due to increased demand in Asia and North America [2]. Regional Performance - Revenue from Hong Kong increased by 19.8% to HKD 173 million, while North America saw a 7.2% growth to HKD 1.047 billion [2]. - Japan's revenue surged by 30.3% to HKD 702 million, highlighting strong demand in that market [2]. Capacity Expansion - The company operates 28 factories, with a capacity utilization rate of 84.7%. Plans are in place to add more facilities in Vietnam and Indonesia by the second half of 2025 [3]. - The Indonesian factory is expected to provide labor cost and tariff advantages, enhancing the company's competitive position [3]. Investment Outlook - The report emphasizes the company's strong design capabilities and scale, which are expected to maintain its leading position among key clients while expanding its customer base [3]. - The projected earnings per share (EPS) for 2025 is HKD 1.16, with a price-to-earnings (P/E) ratio of 12.00 [4].

Core Viewpoint - Derlin International (01126) experienced a significant decline of over 10% in stock price following the release of its interim results, reflecting market reactions to its financial performance and future outlook [1] Financial Performance - For the first half of the year, Derlin International reported revenue of HKD 2.578 billion, representing a year-on-year increase of 12.39% [1] - The net profit for the same period was HKD 307 million, showing a growth of 10.1% compared to the previous year [1] - Earnings per share were reported at HKD 0.454, with the board proposing an interim dividend of HKD 0.25 per share, up from HKD 0.20 in the same period last year [1] Market Position and Strategy - Derlin International is recognized as one of the largest plush toy manufacturers globally, with a product line that includes plush toys, plastic prototypes, waterproof covers, and injection-molded products [1] - The company primarily operates through an OEM model, supplying products to clients in Europe and North America [1] - According to previous research by Guozheng International, Derlin International holds several competitive advantages over its peers in the toy manufacturing sector [1] - The company is expected to capitalize on the trend of popular toys by continuously expanding its production capacity, which could lead to increased business opportunities and performance growth [1]

Core Viewpoint - Delin International (01126) experienced a decline of over 10% in stock price following its interim results announcement, reflecting market reactions to its financial performance and future outlook [1] Financial Performance - Delin International reported a revenue of HKD 2.578 billion for the first half of the year, representing a year-on-year increase of 12.39% [1] - The net profit for the same period was HKD 307 million, showing a growth of 10.1% compared to the previous year [1] - Earnings per share were reported at HKD 0.454, with the board proposing an interim dividend of HKD 0.25 per share, up from HKD 0.20 in the same period last year [1] Market Position and Strategy - Delin International is recognized as one of the largest plush toy manufacturers globally, with a product line that includes plush toys, plastic prototypes, waterproof covers, and injection-molded products [1] - The company primarily operates through an OEM model, supplying products to clients in Europe and North America [1] - According to previous research by Guozheng International, Delin International holds several advantages over its peers in the toy manufacturing sector and is expected to capitalize on the trend of popular toys by expanding its production capacity to seize more business opportunities [1]

消息面上，泡泡玛特日前发布2025年中期业绩，该公司上半年收入138.76亿元人民币，同比激增 204.4%。毛绒产品收入同比增长1276.2%，一跃成为最大品类，占总收入的44.2%。此外，8月20日，泡 泡玛特召开2025中期业绩发布会，供应链负责人袁俊杰表示，泡泡玛特毛绒品类成为爆款品类，得益于 产业链的精密制造和双向协同，毛绒品类产能同比提升10倍，8月产能突破3000万只。 公开资料显示，德林国际为全球最大的毛绒玩具生产商之一，该公司的产品线主要包括毛绒玩具、塑胶 手板模型、防水布罩及注塑产品，其中毛绒玩具和塑胶手板模型产品主要通过OEM模式(代工)提供给欧 美等客户。国证国际此前研报指出，德林国际作为全球领先的玩具制造商，和同行相比，具有多方面的 优势，包括设计研发团队经验丰富，人员数量充足；公司在中国和越南拥有自有厂房，并持续扩充产 能，在客户寻求产地多元化的背景下，公司具有独特优势；部分大客户在推出新IP时需要较高的保密 性，公司的自有厂房也具备保密性这一条件。综上，该行认为公司在潮流玩具盛行的趋势下，有望通过 持续扩充产能来获取更多生意机会，从而推动业绩的增长。 德林国际(01126)涨超1 ...

Group 1 - Delin International's stock price surged over 10%, reaching a historical high of 17.8 HKD, with a year-to-date increase of 2.8 times [1] - Bubble Mart reported a significant revenue increase of 204.4% year-on-year, with a total revenue of 13.876 billion RMB for the first half of 2025 [1] - The plush product category saw a remarkable growth of 1276.2%, becoming the largest category, accounting for 44.2% of total revenue [1] Group 2 - Delin International is one of the largest plush toy manufacturers globally, with a product line that includes plush toys, plastic prototypes, waterproof covers, and injection-molded products [2] - The company operates through an OEM model primarily for plush toys and plastic prototypes, serving clients in Europe and America [2] - Delin International has advantages over competitors, including an experienced design and R&D team, owned factories in China and Vietnam, and the ability to maintain confidentiality for major clients [2] - The company is expected to capitalize on the trend of popular toys by continuously expanding production capacity, which will drive business opportunities and revenue growth [2]

Market Overview - Positive signals from China-US trade negotiations have led to a rise in Hong Kong's three major indices, with the Hang Seng Index closing up 0.84% at 24,366.94 points and a total turnover of HKD 235.17 billion [1] - The Hang Seng China Enterprises Index increased by 1.12% to 8,865.72 points, while the Hang Seng Tech Index rose by 1.09% to 5,451.2 points [1] Blue-Chip Stocks Performance - China Hongqiao (01378) reached a historical high, closing up 4.61% at HKD 15.9, contributing 3.12 points to the Hang Seng Index [2] - China Life (02628) rose by 4.58% to HKD 17.8, contributing 9.19 points, while BYD (01211) increased by 3.83% to HKD 140.8, contributing 30.2 points [2] - Notable declines included Master Kong (00322), down 3.7% to HKD 11.88, and CSPC Pharmaceutical (01093), down 2.75% to HKD 8.83 [2] Sector Highlights - Major tech stocks showed positive performance, with JD.com and Alibaba both rising over 1%, and Tencent up 0.88% [3] - The brokerage sector continued its upward trend, with notable gains from Everbright Securities (06178) up 6.26% and GF Securities (01776) up 6.17% [3] - The automotive sector saw a general increase, with NIO-SW (09866) up 4.04% and BYD (01211) up 3.83% [4][5] Policy Developments - The Central Committee and State Council issued opinions to deepen reforms and expand openness in the Shenzhen Comprehensive Reform Pilot, allowing companies in the Guangdong-Hong Kong-Macao Greater Bay Area to list on the Shenzhen Stock Exchange [4] - The China Securities Regulatory Commission approved Central Huijin to become the controlling shareholder of eight financial institutions, enhancing the influence of state-backed entities in the brokerage sector [4] Emerging Trends - The automotive industry is responding to government initiatives by standardizing supplier payment terms to within 60 days, aimed at improving cash flow and promoting sustainable development [5] - The gaming sector experienced a boost following the announcement of 20 measures by Zhejiang Province to support the overseas expansion of the gaming industry, with stocks like Bilibili-W (09626) rising 9.92% [6] - The photovoltaic sector showed strong performance, with New Hope Energy (01799) up 9.15% and significant participation in the upcoming SNEC International Solar Energy Conference [6] Notable Stock Movements - Derlin International (01126) surged 44% to HKD 9, recognized as a leading plush toy manufacturer [7] - China Rare Earth (00769) rose 18.18% to HKD 0.91, driven by expectations of relaxed export controls [8] - Pop Mart (09992) reached a new high, closing up 4.25% at HKD 269.8, following successful auction results for collectible items [9] - ConvaTec (02162) faced pressure, down 3.49% to HKD 46.95, after announcing a share placement at a discount [10]

Group 1 - The Hang Seng Index rose by 0.84% to close at 24,366.94 points on June 11 [1] - Derlin International (01126.HK) closed at HKD 9.0 per share, up 44.0%, with a trading volume of 20.24 million shares and a turnover of HKD 166 million, showing a volatility of 55.2% [1] - Over the past month, Derlin International has seen a cumulative increase of 4.02%, and a year-to-date increase of 33.68%, outperforming the Hang Seng Index's increase of 20.45% [1] Group 2 - For the fiscal year ending December 31, 2024, Derlin International reported total revenue of HKD 5.047 billion, a year-on-year increase of 1.82%, and a net profit attributable to shareholders of HKD 684 million, a decrease of 11.01% [1] - The gross profit margin for Derlin International is 23.01%, and the debt-to-asset ratio is 20.13% [1] - Currently, there are no institutional investment ratings for Derlin International [1] Group 3 - The average price-to-earnings (P/E) ratio for the household appliances and goods industry is 13.06 times, with a median of 3.73 times [1] - Derlin International has a P/E ratio of 5.73 times, ranking 10th in the industry [1] - Other companies in the industry include Lian International (09918.HK) with a P/E of 1.52 times, Kaifushan Group Holdings (08512.HK) at 1.55 times, Huaxun (00833.HK) at 3.3 times, Kuangshi Fragrance (01925.HK) at 3.73 times, and Shengnuo Group (01418.HK) at 3.8 times [1] Group 4 - Derlin International Limited has expanded its business from plush toy development and production to other areas such as plastic hand models, injection-molded products, textiles, waterproof tarpaulins, and doll toys [2] - The group currently operates 30 subsidiaries across Hong Kong, Vietnam, China, the United States, Singapore, and South Korea, with one overseas branch in Japan [2]