Goodbaby International Holdings (1086) AI Stock Analysis

• Market Cap: HK$1.87B
• Dividend Yield: 6.25%
• Average Volume (3M): 3.21M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.12
• 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: 1,670,647,200
• 10 Day Avg. Volume: 2,713,586
• 30 Day Avg. Volume: 3,207,395
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$1.87
• Price Target Upside: 63.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): HK$69.24B

• Rating: 64 Neutral
• Price Target: HK$1.00 ▼(-12.28% Downside)

The overall stock score is primarily influenced by the company's stable financial performance and attractive valuation, which are offset by bearish technical indicators. The strong dividend yield and low P/E ratio suggest potential undervaluation, but the negative market momentum indicates caution. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Gross Margins

High gross margins indicate effective cost management and pricing power, which can sustain profitability even in competitive markets.

Improved Net Profit Margin

An improved net profit margin reflects better operational efficiency and profitability, enhancing long-term financial health.

Moderate Financial Leverage

Moderate leverage suggests a balanced approach to financing, reducing risk and providing flexibility for future investments.

Negative Factors

Declining Free Cash Flow

Declining free cash flow growth indicates potential cash generation issues, which could impact the company's ability to fund operations and growth.

Decreased EBIT Margin

A reduced EBIT margin suggests challenges in operational efficiency, which could affect profitability if not addressed.

Asset Management Risks

A decrease in total assets may indicate inefficiencies or potential issues in asset utilization, impacting long-term growth.

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: 1.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.14 is above the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.18, and below the 200-day MA of 1.19, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 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	66 Neutral	HK$405.01M	8.11	8.24%	8.96%	5.72%	986.84%
1086	64 Neutral	HK$1.87B	6.78	4.75%	6.25%	7.94%	-24.24%
0869	63 Neutral	HK$513.30M	35.37	1.28%	13.73%	-44.36%	-93.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3830	53 Neutral	HK$80.00M	-9.20	-32.53%	―	-6.48%	-38.10%
1005	50 Neutral	HK$362.98M	-1.60	-37.46%	4.17%	-13.08%	-21.27%
6918	43 Neutral	HK$123.66M	-1.63	-19.89%	―	84.26%	44.41%

Goodbaby International Holdings Corporate Events

Goodbaby International Reports Slight Revenue Decline Amid Global Challenges

Goodbaby International Holdings Limited reported a slight revenue decrease of 1.1% for the nine months ending September 30, 2025, compared to the same period in 2024, with a 2.5% decline on a constant currency basis. Despite the challenging macroeconomic environment, the company maintained its global leadership position, driven by strong performance from its CYBEX brand, which gained market share. Evenflo and gb brands saw revenue declines due to specific segment challenges, while Blue Chip business was impacted by decreased orders amid heightened tariffs. The company continues to focus on product innovation and expanding its omni-channel distribution network to support sustainable growth.