According to a report released by Daimo, Goodboy International (1.61, -0.02,-1.23%) (01086) lowered its target price from HK$2.8 to HK$1.7, giving it a “in sync with the market” rating.

The bank said that the company has a good position in the infant products market, has a diverse brand and product portfolio, and excellent manufacturing and R&D capabilities. It believes the company can benefit from the high-end trend of major economies. Furthermore, the company's brand Cybex should be able to maintain its strong growth momentum, thanks to the strengthening of its supply chain and continuous product category expansion.

The bank said that the company may face some challenges in the mainland and US markets. As far as the mainland is concerned, the decline in the number of newborns, combined with emerging online competition, will put pressure on the company's operations, particularly on the wholesale channel. On the US side, the end of the Toys R Us channel has made distribution more concentrated among leading retailers, reducing the company's bargaining power, and the launch of new products from the brand Evenflo may gradually resume growth.