Core Viewpoint - The company is a leading player in the African hygiene products market, primarily focused on the sales of diapers, with a well-established brand portfolio targeting emerging markets in Africa, Latin America, and Central Asia [1] Industry Overview - The African hygiene products market is valued at $3.8 billion, characterized by low penetration rates and growth potential. Population growth in emerging markets, along with economic development and improved product awareness, indicates significant room for increased product penetration [2] - According to Frost & Sullivan, the market sizes for diapers, sanitary napkins, and baby pull-ups in Africa are projected to reach $2.59 billion, $0.85 billion, and $0.39 billion respectively by 2024, with expected CAGRs of 7.0%, 10.7%, and 7.6% from 2025 to 2029 [2] - The market is concentrated, with a few international brands and local leaders dominating. The CR5 for baby diapers and women's sanitary napkins is projected to be 61.0% and 41.3% respectively by 2024 [2] Company Competitive Advantages - Localized Supply Chain: The company has established local production facilities in multiple African countries, optimizing production processes and reducing logistics costs through local sourcing of raw materials [2] - Diverse Product Line and Brand Matrix: The company offers over 340 SKUs and continuously innovates. Its core brand "Softcare" targets the mid-range market, while it also expands horizontally with technology-driven brands and vertically with more affordable options like "Maya" and "Cuettie" [3] - Extensive Sales Network: The company has built a comprehensive sales network across Africa, Latin America, and Central Asia, establishing long-term partnerships with wholesalers, distributors, supermarkets, and retailers [3] Financial Forecast and Valuation - The company is projected to achieve net profits of $113 million, $133 million, and $152 million for the years 2025 to 2027, representing year-on-year growth rates of 18.5%, 17.8%, and 14.7% respectively. Corresponding EPS figures are expected to be $0.19, $0.22, and $0.25 [3] - The company is assigned a target P/E ratio of 24x based on comparable companies' average valuations for 2026, leading to a target price of HKD 40.94, with an initial "buy" rating [3]
乐舒适(02698.HK)：非洲卫生用品龙头 成长动能充足