Goodbaby International Holdings (1086) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: 5.6%
• Average Volume (3M): 5.52M
• Price to Earnings (P/E): 7.5
• 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: 1.19
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 0.56
• Enterprise Value/Ebitda: 3.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: HK$1.50 ▲(17.19% Upside)

Goodbaby International Holdings has a solid valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, the technical indicators suggest bearish momentum, and the financial performance highlights challenges in cash flow management. The company needs to address these issues to improve its overall attractiveness.

Goodbaby International Holdings Business Overview & Revenue Model

Company Description

Goodbaby International Holdings Limited, an investment holding company, researches, designs, develops, manufactures, markets, and sells durable juvenile products in Europe, North America, Mainland China, and internationally. The company operates through four segments: Strollers and Accessories, Car Seats and Accessories, Non-Durable Products, and Others. It offers children's car safety seats, strollers, apparels and home textile products, feeding products, nursing and personal care products, cribs, bicycles and tricycles, and other children products. The company also provides safety belts, cloth sets, and car components for children; child cloth beds; bath chairs for children; stadium chairs; sports utilities, e-cars, and wooden products; and child carrying systems, pushchairs, high chairs, and other products for children, as well as maternity products. In addition, it offers IT services and a share service center; testing services for children's products, tools, and electronic products; and advisory services for the risk valuation of product quality. Further, the company is involved in the distribution and sale of car safety seats, infant strollers, and other parenting products; and wholesale and retail of children's products. It also operates flagship stores. The company provides its products under the Goodbaby, CYBEX, gb, Evenflo, RollPlay, CBX, Exer Saucer, Urbini, and Happy Dino brands. The company was founded in 1989 and is headquartered in Kunshan, the People's Republic of China.

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: Neutral
• Last Price: 1.28
• 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 Neutral. The current price of 1.28 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.30, and above the 200-day MA of 1.14, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	HK$332.47M	10.11	5.68%	10.91%	-1.07%	―
1086	69 Neutral	$2.07B	7.50	4.75%	5.60%	7.94%	-24.24%
0869	63 Neutral	$637.20M	43.90	1.28%	12.96%	-44.36%	-93.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6918	48 Neutral	HK$161.14M	―	-19.89%	―	84.26%	44.41%
1005	46 Neutral	HK$351.63M	―	-37.46%	4.30%	-13.08%	-21.27%
3830	46 Neutral	HK$56.00M	―	-31.72%	―	-8.50%	4.11%

Goodbaby International Holdings Corporate Events

Goodbaby International Announces AGM and Strategic Resolutions

Goodbaby International Holdings Limited has announced its upcoming Annual General Meeting, scheduled for May 27, 2025, in Shanghai. Key agenda items include the approval of audited financial statements, re-election of directors, declaration of a final dividend of HK$0.07 per share, and the re-appointment of Ernst & Young as auditors. Additionally, the company seeks shareholder approval for mandates to buy back shares and issue additional shares, reflecting strategic moves to enhance shareholder value and operational flexibility.

Goodbaby International Achieves Strong Financial Growth in 2024

Goodbaby International Holdings Limited reported a strong financial performance for the year ended December 31, 2024, with a 10.6% increase in revenue to HK$8,765.9 million and a 70.8% rise in profit to HK$356.2 million. The company’s significant profit growth and improved earnings per share highlight its successful operational strategies and positive market positioning, which could strengthen its competitive edge and benefit stakeholders.

Goodbaby International Declares Final Dividend for 2024

Goodbaby International Holdings Limited has announced a final ordinary cash dividend of HKD 0.07 per share for the financial year ending December 31, 2024. The dividend will be paid on June 23, 2025, following shareholder approval on May 27, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may positively influence investor sentiment.

Goodbaby International Strengthens Governance with New Appointments

Goodbaby International Holdings Limited has announced several key changes to its board and committees, effective from March 26, 2025. The company appointed Mr. Wong Shun Tak as an independent non-executive director and chairperson of the audit committee, and established an Environmental, Social, and Governance (ESG) committee. These changes are expected to enhance the company’s governance structure and focus on sustainable practices, potentially impacting its market positioning and stakeholder relations positively.

Goodbaby International Announces Board Composition and Committee Roles

Goodbaby International Holdings Limited has announced the composition of its board of directors and the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, with various members serving on four key committees: Audit, Remuneration, Nomination, and Environmental, Social and Governance. This announcement highlights the company’s commitment to structured governance and oversight, which is crucial for maintaining investor confidence and ensuring strategic alignment with industry standards.

Goodbaby International Establishes ESG Committee to Enhance Governance

Goodbaby International Holdings Limited has established an Environmental, Social, and Governance (ESG) Committee to assist its board of directors in overseeing ESG issues within the group. The committee will consist of at least three directors, including at least one independent non-executive director, and will meet at least once a year to ensure the company’s ESG responsibilities are met. This move is aimed at strengthening the company’s commitment to sustainable practices and enhancing its governance framework.

Goodbaby International Proposes New Share Option Scheme for 2025

Goodbaby International Holdings Limited, a company incorporated in the Cayman Islands, has announced the proposed adoption of a new 2025 Share Option Scheme, which will replace the existing 2020 Share Option Scheme. This move follows amendments to Chapter 17 of the Listing Rules effective from January 2023. The new scheme aims to incentivize and reward eligible participants, including employees and service providers, by aligning their interests with the company and encouraging long-term growth. The adoption of the 2025 scheme is subject to shareholder approval and regulatory permissions.

Goodbaby International Announces Change of Hong Kong Business Address

Goodbaby International Holdings Limited has announced a change in the address of its principal place of business in Hong Kong, effective from March 3, 2025. This relocation to Stelux House in Kowloon may reflect strategic operational adjustments, potentially impacting its logistical and administrative functions.

Goodbaby International Projects Significant Profit Growth for 2024

Goodbaby International Holdings Limited has announced an expected increase in net profit for the year ending December 2024, with projections ranging from HK$325 million to HK$375 million, compared to HK$208.5 million the previous year. This anticipated growth is attributed to increased revenue, improved gross margins, and favorable brand revenue mix, although offset by rising sea freight costs and foreign exchange fluctuations. The figures are based on unaudited management accounts, and actual results may vary, advising investors to exercise caution.