Group 1 - The core viewpoint of the report is that Leshush (02698) is rated as a "Buy" due to its strong position in the African market, benefiting from increased industry penetration and market share growth, particularly in the core category of baby diapers and rapidly growing sanitary napkins [1] - The company has established a competitive barrier and sustainability by focusing on the African market and expanding into emerging markets like Central Asia and Latin America, having developed a strong network of over 2,800 channel partners across 12 countries [1][2] - The African market for baby diapers, pull-ups, and sanitary napkins is projected to grow from $3.8 billion in 2024 to $5.6 billion by 2029, with a compound annual growth rate (CAGR) of 7.9% from 2025 to 2029, driven by increased penetration and a young population structure [2] Group 2 - The company has built a strong local manufacturing presence in Africa since 2018, making it the enterprise with the most factories in the region, ensuring a stable and responsive supply chain [3] - The company has a solid sales network covering over 80% of the population in key African countries, with strong relationships with wholesalers and distributors, creating high channel barriers [3] - The brand matrix is well-established, with the core brand Softcare and sub-brands like Maya and Cuettie, achieving a market share of 20.3% in baby diapers and 15.6% in sanitary napkins in Africa by volume in 2024, ranking first in both categories [3]

| 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02698 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | USD | | 0.0001 USD | | 100,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | | | 本月底結存 | | | 1,000,000,000 | USD | | 0.0001 USD | | 100,000 | 本月底法定/註冊股本總額： USD 100,000 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年12月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名 ...

Core Viewpoint - Haitong International initiates coverage on Leshushi (02698) with an "Outperform" rating and a target price of HKD 40.5, reflecting a strong growth outlook driven by its leading position in the African hygiene products market [2] Group 1: Company Overview - Leshushi is a multinational hygiene products company focused on emerging markets such as Africa, Latin America, and Central Asia, specializing in the development, manufacturing, and sales of baby diapers, baby pull-ups, sanitary napkins, and wet wipes [3] - According to Frost & Sullivan data, Leshushi ranks first in Africa's baby diaper and sanitary napkin markets by sales volume, with market shares of 20.3% and 15.6% respectively, and ranks second by revenue with market shares of 17.2% and 11.9% [3] Group 2: Growth Drivers - The combination of population growth and urbanization in Africa, along with low penetration rates of baby and female hygiene products, drives significant industry growth potential, with Leshushi showing strong growth momentum in both baby diapers and sanitary napkins [4] Group 3: Competitive Advantages - Leshushi employs a differentiated brand strategy, having developed a strong brand matrix since launching its core brand Softcare in Ghana in 2009, now encompassing over 340 SKUs across four core categories [5] - The company has established local production capabilities in eight African countries, with eight factories and 51 production lines, making it the largest local manufacturer of hygiene products in Africa, which enhances cost efficiency and consumer engagement [5] - Leshushi has a deep multi-channel sales network that reaches over 80% of the local population in key operating countries, with a presence in over 30 countries and 18 sales branches serving more than 2,800 customers [5] Group 4: Future Growth Strategy - Leshushi plans to replicate its successful "African model" in Latin America and other emerging markets to create a sustainable second growth curve [6] - The company aims to expand its product categories through channel reuse and acquisitions, transitioning from a leading hygiene products company to a leading fast-moving consumer goods group [6]

Core Viewpoint - Haitong International forecasts that Leshushi (02698) will achieve revenues of $5.5 billion, $6.5 billion, and $7.6 billion for the years 2025-2027, representing year-on-year growth of 21%, 17%, and 17% respectively. Adjusted net profits are expected to be $1.1 billion, $1.3 billion, and $1.5 billion for the same years, with year-on-year growth of 14%, 17%, and 17% respectively. Given Leshushi's leading position in the African hygiene products market and the structural opportunities from Africa's demographic dividend and increasing penetration rates, a 25x PE ratio for 2026 is suggested, corresponding to a reasonable market value of HKD 25.1 billion and a target price of HKD 40.5 [1][2]. Company Overview - Leshushi is a multinational hygiene products company focused on emerging markets such as Africa, Latin America, and Central Asia, primarily engaged in the development, manufacturing, and sales of baby diapers, pull-ups, sanitary napkins, and wet wipes. According to Frost & Sullivan data, the company ranks first in Africa's baby diaper and sanitary napkin markets by sales volume for 2024, with market shares of 20.3% and 15.6% respectively. By revenue, it ranks second in both markets, with shares of 17.2% and 11.9% respectively [2]. Growth Drivers - The combination of Africa's population growth and accelerated urbanization, along with the low penetration rates of baby and female hygiene products, drives significant industry growth potential. Leshushi demonstrates leading growth momentum in both the baby diaper and sanitary napkin markets, supported by a product matrix that covers premium, mid-range, and mass-market segments [3]. Core Competencies - Differentiated brand strategy with a strong brand matrix: Since launching its core brand Softcare in Ghana in 2009, the company has expanded to include brands such as Maya, Veesper, Cuettie, and Clincleer, creating a comprehensive brand matrix covering four core categories. As of April 2025, the company has over 340 SKUs across these categories [4]. - Localized production and supply chain management: The company initiated local production in Ghana in 2018 and has established eight factories and 51 production lines across eight African countries by April 2025, making it the hygiene products company with the most local factories in Africa. The "locally produced, locally sold" model significantly shortens the sales chain, reduces costs, and enhances consumer engagement [4]. - Extensive multi-channel sales network: As of April 2025, the sales network has expanded to over 30 countries in Africa, Latin America, and Central Asia, with 18 sales branches in 12 countries serving over 2,800 customers. The network covers all administrative regions in key operating countries, reaching over 80% of the local population [4]. Future Growth Strategy - Regional expansion: Leshushi aims to replicate its successful "African model" in Latin America and other emerging markets with similar demographics and consumption patterns, creating a sustainable second growth curve [5]. - Category expansion: The company plans to leverage existing channel networks and consumer insights to expand into health care and hygiene-related products, while also considering strategic acquisitions to rapidly gain brand assets and market entry [5].

Investment Rating - The report initiates coverage with an OUTPERFORM rating for Softcare, indicating a positive outlook compared to the market [1][2]. Core Insights - Softcare is positioned as a leading player in the hygiene products sector within emerging markets, focusing on localized deployment to build a competitive moat [1][4]. - The company has a strong market presence in Africa, with leading market shares in baby diapers (20.3%) and sanitary napkins (15.6%) based on 2024 sales volume [4][9]. - The growth drivers include demographic advantages and low penetration rates in the hygiene products market, which present significant growth potential [4][29]. Financial Performance - Revenue projections for Softcare show a steady increase, with expected revenues of $551 million in 2025, representing a 21% year-over-year growth [7]. - Net profit is projected to reach $112 million in 2025, reflecting a 14% increase from the previous year [7]. - The company maintains a gross profit margin (GPM) of approximately 34.2% for 2025, indicating stable profitability [7][24]. Market Dynamics - The African market for baby and female hygiene products is characterized by a young population and increasing urbanization, which are expected to drive demand [28][29]. - The penetration rates for baby diapers and sanitary napkins in Africa are significantly lower than in developed markets, suggesting ample room for growth [29][31]. - The report highlights that the African hygiene products market is projected to grow at a compound annual growth rate (CAGR) of 7.9% from 2025 to 2029, outpacing other regions [33]. Competitive Advantages - Softcare has developed a diversified brand strategy with over 340 SKUs across four core categories, enhancing its market reach [5]. - The company has established a localized production model with eight factories across eight African countries, which reduces costs and improves supply chain efficiency [5][6]. - A multi-channel sales network has been developed, reaching over 80% of the local population in key markets [5]. Future Growth Strategy - Softcare plans to replicate its successful African model in Latin America and other emerging markets, aiming to create a sustainable second growth curve [6]. - The company is focused on expanding its product categories through both organic growth and strategic acquisitions [6]. Valuation - The report assigns a target price of HK$40.50, based on a price-to-earnings (P/E) ratio of 25x for 2026, reflecting the company's strong market position and growth potential [7].

Company and Industry Summary Company Overview - **Company**: 乐舒氏 (Leshu) - **Industry**: African hygiene products market Key Points Market Position - 乐舒氏 ranks second in the African hygiene products market, with a strong presence in baby diapers and sanitary napkins, holding 20% and 16% market shares respectively in 2024, making it the industry leader in volume but second in revenue due to lower product prices [4][5][6] Growth Potential - The African hygiene products market is experiencing rapid growth, with projected compound annual growth rates (CAGR) of 7% for baby diapers and over 10% for sanitary napkins from 2024 to 2029 [2][7] - East, Central, and Northern Africa are identified as the fastest-growing regions, aligning with 乐舒氏's operational focus [2][7] Strategic Advantages - 乐舒氏 employs a strategy combining branding, localized production, and a global supply chain, with factories in 8 countries and 44 production lines, achieving complete localization [2][5] - The company maintains a diverse brand matrix covering high, mid, and low-end markets, unlike competitors like Procter & Gamble and Kimberly-Clark, which focus on single brands or specific product categories [2][8] Operational Efficiency - The company emphasizes meticulous management, including strict certification of distributors, regular sales performance evaluations, and supervision of sales activities to ensure channel stability and market share [2][5][6] Future Strategies - 乐舒氏 plans to enhance the volume and pricing of core products, expand its market share in emerging markets like South America, and raise funds through an IPO for capacity expansion to meet growing demand [2][9] - The company aims to optimize raw material cost structures to improve gross margins and enhance profitability through brand upgrades and structural optimization [3][9] Competitive Landscape - Compared to multinational giants like Procter & Gamble and Kimberly-Clark, 乐舒氏's complete localization gives it an edge in cost control and market responsiveness [8] - The focus on a multi-brand strategy allows 乐舒氏 to cater to a broader market compared to competitors who emphasize specific product lines [8] Additional Insights - The company has been expanding its footprint in Africa since 2009, starting in Ghana and gradually moving into Kenya, Tanzania, and other countries, with plans for further expansion into North and South Africa [4][5]

Summary of the Conference Call for LeShuShi Company Industry Overview - LeShuShi operates in the African and Latin American markets, focusing on baby diapers and personal care products. The market potential is significant, with the African market projected to reach approximately $3.8 billion and the Latin American market around $7.7 billion by 2024, expected to grow to $5.6 billion and $9.0 billion by 2029 respectively [2][6]. Company Performance - LeShuShi has established itself as a market leader in Africa, with a projected total revenue of $540 million in 2025, reflecting a year-on-year growth of about 20% [3][4]. - The company has maintained a steady revenue growth rate of 15%-20% and a net profit margin of around 20% [9][14]. - In the first four months of 2025, the baby diaper segment accounted for over 70% of total revenue, with West Africa and East Africa contributing 40% and 47% respectively [9]. Competitive Advantages - LeShuShi has built three main competitive barriers: product strength, local supply chain capacity, and channel advantages. The company has a market share exceeding 50% in key regions such as West, Central, and East Africa [2][8]. - The company has established 8 factories and 51 production lines in Africa, making it the largest hygiene product manufacturer in terms of local factory presence [12]. Product Strategy - The company has optimized its product design to cater to local consumer needs, introducing a diaper that requires changing only once a day, priced lower than foreign brands like Procter & Gamble and Kimberly-Clark [4][10]. - Retail prices for LeShuShi's diapers range from $0.09 to $0.20, while foreign brands range from $0.18 to $0.28, allowing LeShuShi to capture consumer interest through high cost-performance [11]. Market Dynamics - The growth in the African market is primarily driven by population growth and low product penetration rates, with only 20% penetration for baby diapers compared to 70%-86% in developed regions [7]. - The company is also expanding into Latin America, starting with markets like Peru, and anticipates that this region will contribute a double-digit percentage to revenue in the coming years [4][5]. Future Outlook - Revenue projections for 2025, 2026, and 2027 are $540 million, $640 million, and $760 million respectively, with a growth rate of approximately 18%-19% [14]. - The company expects to benefit from the rising GDP per capita and increasing product penetration in emerging markets, positioning itself for substantial growth [14]. Distribution Strategy - LeShuShi has developed a self-built distribution network tailored to the fragmented African market, focusing on small retail outlets and local wholesalers, which has proven effective in driving sales [13]. - The company has established 18 sales branches across 12 countries, serving over 2,800 customers, with a significant number of long-term partnerships [13]. This comprehensive overview highlights LeShuShi's strategic positioning, competitive advantages, and growth potential in the rapidly expanding African and Latin American markets.

Core Viewpoint - The Hong Kong IPO market in 2025 is experiencing significant growth, with over 100 IPOs and a fundraising amount exceeding HKD 270 billion, marking a year-on-year increase of 58% and over 223% respectively. This rapid expansion raises questions about which new stocks hold long-term value, with the "Golden Award" for outstanding investment value IPOs providing some guidance for investors [1]. Group 1: Market Overview - The number of IPOs in the Hong Kong market has surpassed 100 as of December 14, 2025, with total fundraising exceeding HKD 270 billion, reflecting a year-on-year growth of 58% and over 223% [1]. - The "Golden Award" for outstanding investment value IPOs has been awarded to 10 companies, including Leshu, focusing on business operations, performance growth, and shareholder value creation [1]. Group 2: Company Profile - Leshu - Leshu, recognized as the first African consumer goods manufacturer listed in Hong Kong, has received the "Annual Outstanding Investment Value IPO" award, signaling its strong investment value and industry recognition [4]. - The company's investment value is supported by two core logical frameworks: deep localization in Africa and the growth dividends of the African market [5]. Group 3: Market Position and Strategy - Leshu has established a strong presence in the African market, focusing on essential products such as baby diapers, sanitary napkins, and wet wipes, benefiting from a deep-rooted local strategy [5][6]. - The company has a comprehensive brand portfolio, with high brand recognition and repurchase rates in the baby diaper and sanitary napkin sectors, indicating strong consumer loyalty [7]. - Leshu's sales network covers over 30 countries in Africa, reaching more than 80% of the local population, which is crucial in a market characterized by fragmented logistics and infrastructure [7]. Group 4: Growth Potential - The African market is experiencing a demographic boom, with a compound annual growth rate (CAGR) of 1.8% for newborns from 2020 to 2024, creating a substantial consumer base for Leshu's products [8]. - The per capita consumption expenditure in Africa is projected to grow at a CAGR of 5.4% from 2020 to 2024, indicating an increasing demand for high-quality products [8]. - The African market for baby diapers and sanitary napkins is expected to grow at a CAGR of 7.9% from 2025 to 2029, significantly outpacing growth in North America, Europe, China, and Japan [8]. Group 5: Expansion and Diversification - Leshu is not only focused on the African market but is also expanding into Latin America, replicating its successful business model [10][11]. - The company has seen significant revenue growth in Peru, with projections indicating a rise from USD 36,300 in 2022 to USD 929,800 in 2024, demonstrating its market potential in Latin America [13]. - Leshu plans to establish new production facilities in various countries, enhancing its ability to respond to market demands and solidifying its competitive edge [13]. Group 6: Product Portfolio and Revenue Stability - The company is diversifying its product offerings, with sanitary napkins showing rapid growth, contributing to revenue stability and resilience [14]. - In the first four months of 2025, revenue from sanitary napkins reached USD 29.94 million, accounting for 18.5% of total revenue, up from 17.3% in the same period in 2024 [15]. - The expansion into additional product categories such as pull-ups and wipes is expected to further strengthen revenue growth and enhance customer lifetime value [15]. Conclusion - Leshu has established a robust growth framework through deep localization in Africa, regional expansion into emerging markets, and product diversification, showcasing sustainable long-term development potential. The recognition from the "Annual Outstanding Investment Value IPO" award underscores its strategic path and operational achievements, positioning it as a key player in the emerging market consumer sector [16].

Group 1 - The core viewpoint emphasizes that listed companies in China are not only the main force behind data growth but also serve as a stabilizing factor in the industry ecosystem, focusing on long-term value and comprehensive governance [2] - In 2025, the capital market aims for steady progress and quality improvement amidst multiple risks, enhancing market resilience and risk resistance, leading to reasonable quantitative growth and effective qualitative enhancement [2] - The market's expectations for listed companies have shifted from short-term performance to long-termism and comprehensive value, including governance structure, stable returns, strategic layout in frontier fields, and deep ESG practices [2] Group 2 - The 2025 T-EDGE Global Dialogue, organized by Titanium Media Group, NextFin.AI, and Barron’s China, highlights the importance of recognizing companies that redefine industry boundaries and emphasizes the core logic of "value investment" [3] - The EDGE AWARDS annual list includes categories such as Most Socially Responsible Company, Best Board Secretary, Most Investment Value Company, and Best Investor Relations Management Company, recognizing outstanding performance in governance, investment value, social responsibility, and investor relations [3][4] Group 3 - Aier Eye Hospital is recognized as a leader in ESG practices, integrating ESG into its core business and governance structure, while actively engaging in public welfare projects to enhance national eye health [5] - Betaini Group focuses on creating a skin health ecosystem and incorporates green development into its strategy, promoting biodiversity and sustainable practices [6] - Kweichow Moutai leads the liquor industry with a brand value of 468.718 billion, actively engaging in ecological protection and social responsibility initiatives [7] - JD Group has created significant employment opportunities and is committed to improving living conditions for its delivery personnel, with plans to invest 22 billion in housing projects [8] - Quantitative Group, listed on the Hong Kong Stock Exchange, leverages AI technology to reshape online consumption and has achieved a compound annual growth rate of 44.59% in revenue from 2022 to 2024 [9] - Seres focuses on new energy vehicles and has established a robust ESG governance framework, with significant growth in revenue and sales projected for 2024 [10] - Shui Jing Fang integrates social responsibility into its corporate strategy, setting clear environmental goals and contributing to community development [11] - China Baoan actively engages in social responsibility through its subsidiaries, contributing to community welfare and healthcare improvements [13] Group 4 - The Best Board Secretary category highlights the importance of effective communication between listed companies and the public, emphasizing the role of board secretaries in enhancing corporate governance [14] - Ren Shunying from Anfu Technology is recognized for her expertise in capital operations and corporate governance, significantly contributing to the company's compliance and investor relations [15] - Xia Ping from Jiahe Intelligent is noted for her effective investor relations management and participation in strategic planning [16] - Li Liangyu from Robotech is acknowledged for his role in maintaining corporate governance and enhancing market recognition [17] - Zhang Wenyu from Tianqi Lithium is recognized for his contributions to market value management and investor relations [18] Group 5 - The Most Investment Value Company category identifies companies with clear business models and significant breakthroughs in technology or policy, indicating strong growth potential [19][20] - Orbbec, a leader in 3D vision technology, has achieved over 70% market share in key sectors and continues to lead industry advancements [20] - BYD maintains its position as a global leader in new energy, with significant growth in overseas markets and a strong investment outlook [21] - Cambrian has entered a critical profitability phase, with substantial revenue growth and a strong market position in AI chips [22] - Hanlan Environment focuses on environmental services and has achieved consistent profit growth, attracting long-term investors [23] - Geely Auto has demonstrated strong financial performance and strategic integration, positioning itself for sustained growth [24] - Kanghong Pharmaceutical emphasizes innovation in drug development and has shown robust revenue growth, indicating long-term investment value [25] - Lens Technology maintains a strong market position with solid cash flow and growth potential in the automotive and consumer electronics sectors [26]

Core Viewpoint - UBS initiates coverage on LeShuShi (02698) with a "Buy" rating and a target price of HKD 41, highlighting the company's unique positioning to capture long-term structural growth in African hygiene product consumption [1] Group 1: Company Overview - LeShuShi is positioned to benefit from favorable demographic trends, low category penetration rates, and decades of economic and consumption growth potential in Africa [1] - As a regional leader, the company boasts a durable competitive advantage through scale, localized manufacturing, distribution, and execution capabilities [1] Group 2: Financial Projections - UBS expects LeShuShi to maintain a 15% compound annual growth rate (CAGR) in sales from 2026 to 2028, while sustaining resilient profit margins [1] - The firm anticipates that the company's profit margin structure will remain stable, driven by localized manufacturing and scale advantages that enhance cost efficiency [1] Group 3: Market Dynamics - Potential favorable foreign exchange dynamics and selective expansion into Latin America are seen as additional growth opportunities [1] - The average selling price (ASP) in Latin America is higher than in Africa, suggesting that geographic diversification could lead to structurally higher profitability [1]