Core Viewpoint - The report from China Merchants Securities initiates coverage with a "Buy" rating for Different Group (06090), highlighting its clear brand positioning, strong product development, and channel expansion capabilities, which open up growth opportunities in overseas markets targeting middle and high-net-worth individuals [1] Financial Performance - Different Group (BeBeBus) has shown impressive financial performance, with revenue projected to grow from 507 million in 2022 to 1.249 billion in 2024, representing a compound annual growth rate (CAGR) of 57%. The net profit is expected to reach 59 million in 2024, with a revenue of 726 million in the first half of 2025, reflecting a 25% increase, and a net profit of 49 million, marking a 72% growth [2] Product Development and Market Positioning - Since launching its core brand BeBeBus in 2019, the company has focused on high-value family segments, aiming to create a leading global brand in the mother and baby lifestyle sector. The product range includes key scenarios such as parent-child travel, baby sleep, feeding, and hygiene care, with significant growth driven by baby care and feeding categories [3] - By the first half of 2025, baby care products accounted for 42% of sales, surpassing travel products at 36%. The online sales channel contributed over 70% of revenue, with both online and offline channels showing balanced growth [3] Competitive Advantages - Different Group targets middle and high-net-worth individuals, who have stable incomes and prioritize brand quality and product functionality, showing less price sensitivity. The brand's high-end positioning allows for natural product line extensions into baby care and feeding categories, leading to high repurchase rates [4] Marketing and Brand Growth - Collaborating with influencers on platforms like Xiaohongshu has rapidly enhanced brand visibility. The GMV on Tmall increased from 137 million in 2020 to 579 million in 2024, with the first 11 months of this year already surpassing the total for 2024. Additionally, GMV on Douyin reached 226 million in 2024, and on JD, it hit 400 million in the same year [5]

Core Viewpoint - The report from China Merchants Securities initiates coverage with a "Buy" rating for Different Group (06090), highlighting its clear brand positioning, strong product development, and channel expansion capabilities, which open up growth opportunities in overseas markets targeting middle-class and high-net-worth individuals [1] Financial Performance - Different Group (BeBeBus) has shown impressive financial performance, with revenue projected to grow from 507 million in 2022 to 1.249 billion in 2024, representing a compound annual growth rate (CAGR) of 57%. Net profit is expected to reach 59 million in 2024, with 2025 H1 revenue at 726 million (+25%) and net profit at 49 million (+72%) [1] Product Development and Market Focus - Since its launch in 2019, the core brand BeBeBus has focused on high-value family segments, offering products across four key scenarios: parent-child travel, baby sleep, parent-child feeding, and hygiene care. The main growth drivers have shifted from travel to baby care and feeding, with baby care accounting for 42% of sales in 2025 H1, surpassing travel at 36% [2] Sales Channels and Growth - In 2025 H1, over 70% of the company's revenue came from online sales, with both online and offline channels showing balanced growth (+23% for online and +30% for offline). The company's premium product positioning has resulted in a stable gross margin of around 50%, with margins reported at 47.7%, 50.2%, 50.4%, and 49.4% from 2022 to 2025 H1 [2] Competitive Advantages - Different Group targets middle-class and high-net-worth individuals, who have stable incomes and prioritize brand quality and product functionality over price. The brand's precise positioning and the high-value nature of its products allow for natural extensions into baby care and feeding categories, leading to high repurchase rates [3] Brand Building and Market Presence - Collaborating with influencers on platforms like Xiaohongshu has rapidly enhanced brand visibility. BeBeBus's GMV on Tmall grew from 137 million in 2020 to 579 million in 2024, with 2024's figures already surpassed in the first 11 months of this year. GMV on Douyin reached 226 million in 2024, and JD's GMV hit 400 million in 2024, with 416 million achieved in the first 11 months of this year [4]

Core Viewpoint - The company, Different Group, has rapidly established its core brand BeBeBus in the high-end maternal and infant product market, aiming for an IPO in Hong Kong to raise funds for production capacity, overseas market expansion, brand activities, new product development, and working capital [1][2]. Group 1: Company Growth and Marketing Strategy - BeBeBus was founded in 2019 and has quickly become the best-selling high-end durable baby product brand in China, according to GMV data for 2023 [2]. - The rapid rise of BeBeBus is attributed to effective marketing strategies, particularly heavy investment in social media platforms like Xiaohongshu (Little Red Book) [2][3]. - The company has spent significant amounts on sales and distribution, with expenses of 189 million, 286 million, and 271 million yuan for 2022, 2023, and the first three quarters of 2024, respectively, accounting for 37.2%, 33.5%, and 30.6% of revenue [3]. Group 2: Product Quality and Market Challenges - Despite its high-end positioning, BeBeBus faces challenges related to product quality and consumer perception, with many users questioning the brand's authenticity and quality due to reliance on social media marketing [5][10]. - The company has expanded its product range from four core products to include various items for different parenting scenarios, but this rapid expansion has led to quality control issues, particularly as many products are produced through outsourcing [11][13]. - Complaints regarding product design and quality have surfaced on platforms like Xiaohongshu and Black Cat Complaints, with 252 complaints recorded related to product quality and false advertising as of July 3, 2025 [14].