Core Viewpoint - Goodbaby (01086) is rated "Buy" with a target price of HKD 1.85, driven by its core asset Cybex, which is a major profit source and growth driver for the group [1] Group 1: Company Overview - Goodbaby is a global leader in the baby products industry, known for its safety, innovation, and high quality, with a diverse product matrix covering strollers, car seats, furniture, carriers, and apparel [1] - The company owns strategic brands such as Cybex, Evenflo, and gb, catering to various market segments and price points [1] Group 2: Cybex Performance - In 2024, Cybex achieved record revenue of HKD 4.4 billion, accounting for 51% of total revenue, with a gross margin exceeding 50% [1] - Cybex continues to increase its global market share, holding approximately 30% in Europe, while expanding into Japan and other potential markets [1] Group 3: gb Brand Transformation - The gb brand, a domestic leader, has faced challenges but is showing signs of recovery, with positive growth in offline channels and improved online performance expected by mid-2025 [2] - The brand's gross margin has improved due to optimized channel management and pricing strategies [2] Group 4: Financial Performance and Shareholder Returns - In 2024, Goodbaby's revenue grew by 10.6% to HKD 8.77 billion, driven by growth in Europe and Cybex [3] - Operating profit and net profit attributable to shareholders increased by 35.7% and 74.9%, respectively, benefiting from improved gross margins [3] - The company has resumed dividend payments, declaring HKD 0.07 per share, representing a payout ratio of 33.3% [3]

Core Viewpoint - First Shanghai has issued a "Buy" rating for Goodbaby (01086) with a target price of HKD 1.85, highlighting the company's competitive advantages and future development potential [1] Group 1: Company Overview - Goodbaby is a global leader in the baby products industry, known for its safety, innovation, and high quality, with a diverse product matrix that includes strollers, car seats, baby furniture, carriers, and clothing [2] - The company owns strategic brands such as Cybex, Evenflo, and gb, covering all price ranges and age groups to meet various market demands [2] Group 2: Cybex Performance - Cybex, recognized as a high-end brand, generated a record revenue of HKD 4.4 billion in 2024, accounting for 51% of total revenue, with a gross margin exceeding 50% [3] - The brand continues to increase its global market share, holding approximately 30% in Europe, while also expanding into markets like Japan, the Middle East, North America, and China [3] Group 3: gb Brand Transformation - The gb brand, a domestic leader in the Chinese market, has faced a decline due to various internal and external factors, but is showing signs of recovery with positive growth in offline channels and improved online performance [4] - The gross margin has significantly improved due to the optimization of channel strategies, and the Chinese market is expected to gradually turn from loss to profit [4] Group 4: Financial Performance and Shareholder Returns - In 2024, Goodbaby's revenue increased by 10.6% to HKD 8.77 billion, driven by growth in Europe and the Cybex brand [5] - Operating profit and net profit attributable to shareholders rose by 35.7% and 74.9% to HKD 500 million and HKD 360 million, respectively, benefiting from improved gross margins [5] - The company has resumed dividend payments, declaring a dividend of HKD 0.07 per share, equivalent to a payout ratio of 33.3%, as a means to return value to shareholders [5]