Goodbaby International Holdings (1086) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: 5.56%
• Average Volume (3M): 5.52M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.03
• Revenue Growth: 7.94%
• EPS Growth: -24.24%
• Country: HK
• Employees: 6,231
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.06
• Shares Outstanding: 1,670,394,200
• 10 Day Avg. Volume: 3,813,677
• 30 Day Avg. Volume: 5,519,822
• PEG Ratio: 0.06
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 2.60
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 0.56
• Enterprise Value/Ebitda: 3.66
• 1Y Price Target: $1.71
• Price Target Upside: 35.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: HK$1.50 ▲(19.05% Upside)

The overall stock score is driven primarily by a stable financial performance and attractive valuation. The company's strong gross margins and improved net profit margins are positive, but declining free cash flow growth is a concern. The stock's low P/E ratio and high dividend yield suggest it is undervalued, providing potential upside. However, technical indicators point to a bearish short-term trend, which may limit immediate gains.

Goodbaby International Holdings Business Overview & Revenue Model

Company Description

Goodbaby International Holdings Limited is a leading global company that specializes in designing, manufacturing, and selling a diverse range of baby and children's products. The company operates primarily in the juvenile products sector, offering a wide array of products including strollers, car seats, high chairs, and other baby-related items. With a strong focus on quality and safety, Goodbaby is committed to providing innovative solutions for parents and caregivers, leveraging its extensive research and development capabilities to enhance the lives of families around the world.

How the Company Makes Money

Goodbaby International Holdings generates revenue through multiple key streams, primarily by selling its products through various channels including retail, e-commerce, and partnerships with major distributors and retailers globally. The company's revenue model is bolstered by its strong brand recognition and reputation for quality, which allows it to command premium pricing for its products. Additionally, Goodbaby has formed strategic partnerships with leading retailers and online platforms, expanding its market reach and enhancing its distribution capabilities. The company also benefits from economies of scale in manufacturing, which helps to lower production costs and improve profit margins. Furthermore, Goodbaby invests in innovation and product development, creating new offerings that meet evolving consumer demands, thereby driving additional sales and revenue growth.

Goodbaby International Holdings Financial Statement Overview

Summary

Goodbaby International Holdings showcases a stable financial performance with strong gross margins and improved net profit margins. While the balance sheet reflects a healthy equity base and moderate leverage, the declining free cash flow growth signals potential cash flow management issues. The company should focus on enhancing operational efficiency and revenue growth to drive future performance.

Income Statement

The company has demonstrated a mixed performance. The Gross Profit Margin for 2024 is robust at approximately 51.4%, indicating efficient cost management. The Net Profit Margin improved significantly to 4.1% from the previous year's 2.6%, showing enhanced profitability. However, revenue growth was modest at 10.6% year-over-year, suggesting room for sales expansion. The EBIT Margin decreased from 3.1% to 0.6%, reflecting challenges in operational efficiency, while the EBITDA Margin remained strong at 9.2%.

Balance Sheet

The company's financial leverage is moderate with a Debt-to-Equity Ratio of 0.30, indicating a balanced capital structure. The Return on Equity (ROE) increased to 6.1% from 3.6%, reflecting improved profitability. The Equity Ratio remained stable at 55.6%, showcasing a strong equity base. Despite the positive indicators, the decrease in total assets highlights potential risks in asset management.

Cash Flow

The Free Cash Flow Growth Rate dropped significantly to -37.5%, indicating challenges in cash generation. However, the Operating Cash Flow to Net Income Ratio is robust at 2.6, demonstrating strong cash flow relative to earnings. The Free Cash Flow to Net Income Ratio stands at 1.6, reflecting adequate conversion of income to cash. The decline in free cash flow growth is a concern, needing attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.88B	8.77B	7.93B	8.29B	9.69B	8.30B
Gross Profit	4.44B	4.51B	3.97B	3.36B	4.00B	3.67B
EBITDA	674.16M	806.20M	907.04M	625.88M	701.49M	901.53M
Net Income	275.79M	355.85M	203.50M	33.49M	123.82M	256.57M
Balance Sheet
Total Assets	10.48B	10.40B	11.37B	11.71B	13.17B	11.87B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.13B	2.20B	966.50M	1.11B	1.70B
Total Debt	1.72B	1.72B	3.05B	3.65B	3.82B	2.99B
Total Liabilities	4.46B	4.59B	5.75B	6.16B	7.07B	6.09B
Stockholders Equity	6.01B	5.79B	5.60B	5.52B	6.06B	5.75B
Cash Flow
Free Cash Flow	653.90M	580.90M	930.04M	191.59M	-46.66M	776.43M
Operating Cash Flow	937.73M	926.96M	1.22B	551.52M	312.65M	1.05B
Investing Cash Flow	-319.16M	-191.47M	-261.22M	-318.47M	-332.79M	-252.31M
Financing Cash Flow	72.68M	-570.79M	-897.18M	-345.65M	-585.04M	-219.95M

Goodbaby International Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1086, the sentiment is Negative. The current price of 1.26 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.31, and above the 200-day MA of 1.15, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 32.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1086.

Goodbaby International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0114	―	HK$344.56M	10.48	5.68%	10.53%	-1.07%	―
1086	―	$2.09B	7.56	4.75%	5.56%	7.94%	-24.24%
0869	―	$649.00M	44.72	1.28%	12.96%	-44.36%	-93.64%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1005	―	HK$351.63M	-1.55	-37.46%	4.30%	-13.08%	-21.27%
3830	―	HK$64.00M	―	-31.72%	―	-8.50%	4.11%
6918	―	HK$143.90M	―	-19.89%	―	84.26%	44.41%

Goodbaby International Holdings Corporate Events

Goodbaby International Reports Decline in Interim Profits Despite Revenue Growth

Goodbaby International Holdings Limited reported its interim results for the six months ending June 30, 2025, showing a slight revenue increase of 2.7% to HK$4,300.9 million compared to the same period in 2024. However, the company faced a significant decline in profit, with operating profit dropping by 27.7% and profit attributable to owners of the parent falling by 43.1%. This decline in profitability may impact the company’s financial stability and market position, raising concerns among stakeholders.

Goodbaby International Holdings Announces Board Composition and Committee Roles

Goodbaby International Holdings Limited has announced the composition of its board of directors and their roles, highlighting the leadership structure with Mr. Song Zhenghuan as Chairman and Mr. Liu Tongyou as CEO. The board has established four committees: Audit, Remuneration, Nomination, and Environmental, Social and Governance, with specific directors assigned to each, reflecting the company’s commitment to structured governance and oversight.

Goodbaby International Secures Lease for Key Facilities in Kunshan

Goodbaby International Holdings Limited, through its indirect wholly-owned subsidiary GCPC, has entered into a lease agreement with GCCL for office and warehousing facilities in Kunshan City, Jiangsu Province, China. The agreement, which spans from September 2025 to December 2027, involves a monthly rent of RMB403,925 and is considered a connected transaction under Hong Kong’s Listing Rules. This transaction requires reporting and announcement but is exempt from circular and independent shareholders’ approval requirements.

Goodbaby International Schedules Board Meeting to Review Interim Results

Goodbaby International Holdings Limited has announced a board meeting scheduled for August 25, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is crucial for assessing the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.