Company Coverage
Multitrend Indo (BABY IJ): Profitability Turnaround And Building Scale
NOT RATED
Current price:
Target price:
Upside:
Rp226
n.a.
n.a.
Highlights
Strong turnaround. 1H26 marked BABY’s strongest first-half performance since its IPO, driven by improving operating leverage.
Asset-light retail model. Exclusive international brand licensing supports a high-margin omnichannel retail and B2B business.
Brand portfolio expansion. The EGI acquisition adds premium brands including Hape, Jellycat, and Skip Hop, strengthening BABY’s distribution platform.
Analysis
Omnichannel retailer with exclusive brand licensing. PT Multitrend Indo Tbk (BABY) develops and sells baby and kids products under exclusive franchise and licensing agreements rather than manufacturing for third parties. The company designs or sources products, then markets them under brands including Mothercare, Early Learning Centre, Gingersnaps, The Children’s Place, and The Entertainer while paying royalty fees to brand owners. This licensing model supports a relatively high gross margin of around 42%, while its B2B arm, PT Kanmo Multi Gemilang, distributes brands such as Nuby, Playgro, and Banz to third-party retailers. BABY operates more than 128 stores nationwide alongside its growing online platform.
Loyalty ecosystem accelerated digital growth. BABY has built its digital strategy around the two-million-member Kanmo Circle loyalty programme and AI-powered store analytics. The company uses customer data, footfall tracking, heatmaps, and product engagement analytics to improve personalisation and store productivity. Digital sales mix has expanded from 5% in 2022 to 14% by Apr 26, creating a meaningful incremental growth driver alongside its nationwide store network.
Rights issue funded platform expansion. BABY raised Rp140.8b through its Apr 26 rights issue by issuing 238.6m new shares at Rp590 per share. Around 92% of proceeds will fund the acquisition of a 48.15% stake in Emway Globalindo (EGI), a toy and kids lifestyle distributor, ultimately bringing BABY’s effective ownership close to 100% with standby buyer from controlling shareholder Blooming Years. The acquisition broadens BABY’s brand portfolio by adding names such as Hape, Jellycat, and Skip Hop, while strengthening its position in the premium baby and kids segment.
Highlights
Strong turnaround. 1H26 marked BABY’s strongest first-half performance since its IPO, driven by improving operating leverage.
Asset-light retail model. Exclusive international brand licensing supports a high-margin omnichannel retail and B2B business.
Brand portfolio expansion. The EGI acquisition adds premium brands including Hape, Jellycat, and Skip Hop, strengthening BABY’s distribution platform.
Analysis
Omnichannel retailer with exclusive brand licensing. PT Multitrend Indo Tbk (BABY) develops and sells baby and kids products under exclusive franchise and licensing agreements rather than manufacturing for third parties. The company designs or sources products, then markets them under brands including Mothercare, Early Learning Centre, Gingersnaps, The Children’s Place, and The Entertainer while paying royalty fees to brand owners. This licensing model supports a relatively high gross margin of around 42%, while its B2B arm, PT Kanmo Multi Gemilang, distributes brands such as Nuby, Playgro, and Banz to third-party retailers. BABY operates more than 128 stores nationwide alongside its growing online platform.
Loyalty ecosystem accelerated digital growth. BABY has built its digital strategy around the two-million-member Kanmo Circle loyalty programme and AI-powered store analytics. The company uses customer data, footfall tracking, heatmaps, and product engagement analytics to improve personalisation and store productivity. Digital sales mix has expanded from 5% in 2022 to 14% by Apr 26, creating a meaningful incremental growth driver alongside its nationwide store network.
Rights issue funded platform expansion. BABY raised Rp140.8b through its Apr 26 rights issue by issuing 238.6m new shares at Rp590 per share. Around 92% of proceeds will fund the acquisition of a 48.15% stake in Emway Globalindo (EGI), a toy and kids lifestyle distributor, ultimately bringing BABY’s effective ownership close to 100% with standby buyer from controlling shareholder Blooming Years. The acquisition broadens BABY’s brand portfolio by adding names such as Hape, Jellycat, and Skip Hop, while strengthening its position in the premium baby and kids segment.
NOT RATED
Current price:
Target price:
Upside:
Rp226
n.a.
n.a.
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