Cinda Securities has released a research report indicating that BUTONG GROUP (06090) is continuously expanding the offline sales channels for its BeBeBus brand. Since 2026, the company has been actively growing its offline distribution network and has partnered with several maternal and infant enterprises to advance its business operations. The brokerage forecasts the company's net profit attributable to the parent company for 2026-2028 to be RMB 1.9 billion, RMB 2.5 billion, and RMB 3.1 billion, respectively, with corresponding P/E ratios of 17.6x, 13.4x, and 10.9x. The firm is optimistic that 2026 will mark the beginning of an accelerated push into overseas markets for the company. Key points from Cinda Securities are as follows:
Steady revenue and profit growth in 2025, with the BeBeBus brand developing rapidly. In 2025, the company achieved revenue of RMB 14.46 billion (a year-on-year increase of 15.8%) and an adjusted net profit of RMB 1.36 billion (a year-on-year increase of 22.3%). By business segment, revenue from products for travel scenarios, sleep scenarios, feeding scenarios, and infant care scenarios reached RMB 4.7 billion, RMB 1.9 billion, RMB 1.6 billion, and RMB 6.3 billion, respectively. The infant care segment saw significant sales growth driven by successful online channel expansion, accounting for 43.2% of total revenue and effectively broadening the product matrix.
Updated mission focuses on "Redefining High-End Family Quality Living with AI," emphasizing product innovation. The group has updated its mission, planning to implement AI in specific scenarios, product applications, and industrial integration. In 2026, it will enhance the AI capabilities of its core products—including strollers, car seats, cribs, and high chairs—and develop AI-powered smart products tailored for both domestic and international markets, targeting child development lines and the family CFO concept. Furthermore, the company continues to expand its sales channels and improve marketing performance, achieving substantial growth in offline sales by increasing partnerships with distributors and key third-party retail outlets. The brokerage is confident that the company's strong product development capabilities and new retail marketing operations will support accelerated future growth.
Abundant user resources with increasing customer loyalty. The brokerage believes the company's growth strategy is based on establishing user loyalty through high-value, high-engagement categories like strollers and car seats, then expanding into essential, high-margin, high-visibility, high-repeat, and high-market-share sub-categories such as diapers and other household living products, thereby maximizing the value of loyal customers. From 2022 to the first half of 2025, revenue contributions from repeat customers were 18%, 34%, 38%, and 38%, respectively, showing a clear trend of increasing customer stickiness.
Actively promoting localized global expansion. The company is actively advancing its global expansion strategy, targeting markets including North America, Europe, and Southeast Asia. By leveraging local advantages and resources, it aims to build localized brands and achieve deep localization in products, organization, and operations.
Risk factors include weak consumer demand, intensified competition, slower-than-expected new product launches, and delays in overseas expansion.
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