Cinda: BUTONG GROUP (06090) revenue and profit growth remain solid in 2025, BeBeBus brand is rapidly developing.

Cinda's research report states that BUTONG GROUP (06090)'s BeBeBus brand offline channels continue to expand. Since 2026, the company has been expanding its offline channels and collaborating with multiple maternity and baby companies to drive business. The bank forecasts that the company's net profit attributable to the parent company will be 1.9/2.5/3.1 billion yuan respectively in 2026-2028, with PEs of 17.6X/13.4X/10.9X. The bank is optimistic that 2026 will be the year for the company to accelerate its development in overseas markets. Key Points from Cinda: Steady growth in revenue and profits in 2025, rapid development of the BeBeBus brand In 2025, the company achieved revenue of 1.446 billion yuan (a year-on-year increase of 15.8%) and adjusted net profit of 136 million yuan (a year-on-year increase of 22.3%); in terms of business segments, the company's revenue for travel scenarios/sleep scenarios/feeding scenarios/baby care scenarios were 4.7/1.9/1.6/6.3 billion yuan respectively. The successful expansion of baby care scenarios through online channels led to a significant increase in sales volume, accounting for 43.2% and effectively expanding the product matrix. Updated mission to "Redefine high-end quality family life with AI" and focus on product innovation The company has updated its group mission, planning for AI scene-based, product-based, and industrial-based applications, and will increase the AI upgrade of core products (baby strollers, car safety seats, baby beds, and baby dining chairs) in 2026, and develop AI-intelligent products suitable for domestic and international markets based on children's growth lines and around the family CFO. In addition, the company continues to expand sales channels and improve marketing performance, achieving a significant increase in offline sales by expanding the layout of third-party stores managed by distributors or key customers. The bank is optimistic that the company's strong product development capabilities and new retail marketing and operational capabilities will help accelerate future growth. Rich user resources, sustained increase in stickiness The bank believes that the company's growth logic lies in building user mindshare through high-priced, high-stickiness categories such as baby strollers and safety seats, and then further expanding into high-demand, high-premium, high-dissemination, high-repurchase, and high-market share segmented categories, such as diapers and other household products, in order to maximize the value of loyal users. From 2022 to 2025H1, the contribution of repeat customers to the company's revenue was 18%/34%/38%/38%, showing a trend of increased customer stickiness. Actively promoting localization and global expansion The company is actively promoting global expansion, targeting markets including North America, Europe, and Southeast Asia, leveraging local resources to create localized brands and achieve deep localization of products, organization, and operations. Risk factors: Weak consumer demand, intensifying competition, new product promotions falling short of expectations, overseas expansion falling short of expectations.