CMSC released a research report initiating coverage on BUTONG GROUP (06090) with a "Buy" rating. The company, positioned as a mid-to-high-end maternal and child products brand, demonstrates clear brand positioning, strong product development capabilities, and robust channel expansion strategies. Its overseas market growth further unlocks future potential. Targeting middle-class and high-net-worth consumers, BUTONG GROUP has established a premium brand image through flagship products like strollers, cribs, and car seats, while expanding into high-frequency, high-repurchase categories such as baby care and feeding. Collaborations with Key Opinion Leaders (KOLs) on Xiaohongshu have rapidly enhanced brand influence across multiple channels.
Key financial highlights: As a premium parenting brand for high-net-worth families, BUTONG GROUP (branded as BeBeBus) has delivered outstanding performance in recent years. Revenue grew from RMB 507 million in 2022 to RMB 1.249 billion in 2024, achieving a 57% CAGR. Net profit reached RMB 59 million in 2024, while H1 2025 revenue rose 25% YoY to RMB 726 million with net profit surging 72% to RMB 49 million.
Since launching its core brand BeBeBus in 2019, the company has focused on high-value households, aiming to become a global leader in maternal and child lifestyle products. Its portfolio spans four key scenarios: family mobility, baby sleep, feeding, and hygiene care, including strollers, car seats, high chairs, sleep sacks, and diapers.
Category breakdown: Baby care (42% of H1 2025 revenue) has overtaken mobility products (36%) as the top revenue driver, followed by sleep products (14%) and feeding products (9%).
Channel performance: Online sales contributed over 70% of H1 2025 revenue, though offline channels are expanding aggressively, with both segments growing evenly (+23% online, +30% offline). The premium positioning sustains stable gross margins around 50% (2022–H1 2025: 47.7%, 50.2%, 50.4%, 49.4%).
Competitive advantages: BUTONG GROUP’s differentiated strategy targets income-stable, brand-conscious consumers less sensitive to pricing. Its extensible product lines and high-value SKUs (e.g., strollers, cribs) naturally extend into high-repurchase categories like baby care. Partnerships with Xiaohongshu KOLs have accelerated brand momentum.
Platform GMV growth (per third-party data): BeBeBus’s Tmall GMV surged from RMB 137 million in 2020 to RMB 579 million in 2024, exceeding full-year 2024 figures in the first 11 months of 2025. Douyin GMV hit RMB 226 million in 2024, while JD.com reached RMB 400 million (RMB 416 million in Jan–Nov 2025).
Risk factors: 1. Declining birth rates and weak consumer demand. 2. Limited operating history; potential failure to adapt to shifting consumer preferences. 3. Slower product iteration and deeper discounts. 4. High online revenue exposure to rising traffic costs. 5. Intensifying competition. 6. Valuation and liquidity risks as a newly listed stock.
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