Goodbaby International Holdings Limited (01086.HK) saw its stock price plummet by 5.19% in intraday trading, despite announcing positive annual results for 2024. The significant drop comes as a surprise to many investors, given the company's reported double-digit revenue growth and improved profitability.

According to the company's press release, Goodbaby International achieved a 10.6% increase in revenue, reaching HK$8,765.9 million for the year ended December 31, 2024. The Group also reported an impressive 35.7% rise in operating profit to HK$500.0 million, with the operating profit margin expanding to 5.7%. The company's strategic brand CYBEX was a standout performer, recording a strong 20.8% revenue growth.

However, the market's negative reaction suggests that investors may have had even higher expectations or are concerned about other factors. The decline in revenue from the gb brand and only moderate growth from the Evenflo brand could be points of concern. Additionally, broader market conditions or sector-specific issues not mentioned in the company's report might be influencing investor sentiment. As the trading session progresses, market analysts will be closely watching to see if Goodbaby International can recover from this unexpected downturn.