Core Viewpoint - CICC initiates coverage on Leshushi (02698) with an "outperform" rating and a target price of HKD 40.00, implying a 24% upside based on a 24x P/E for 2026 [1] Group 1: Company Overview - Leshushi is a leading player in the African hygiene products market, benefiting from a localized business model that aligns with local market needs, thus enjoying growth in emerging markets [2] - The company is expected to achieve EPS of USD 0.19 and USD 0.22 for 2025 and 2026 respectively, with a CAGR of 21.1% from 2024 to 2026 [1] Group 2: Market Potential - The hygiene product market in Africa, Latin America, and Central Asia is projected to grow significantly, with CAGR estimates of 7.9%, 3.0%, and 4.8% respectively from 2025 to 2029, making it the fastest-growing globally [3] - Leshushi is expected to capture 20.3% and 15.6% of the diaper and sanitary napkin markets in Africa by 2024, with its leading position likely to strengthen [3] Group 3: Competitive Advantages - The company has established a robust localized operational model, which includes strong local manufacturing capabilities, tailored branding strategies, extensive distribution networks, and a predominantly local workforce [4] - Leshushi's distribution network covers over 80% of the population in core markets, enhancing its competitive edge [4] Group 4: Growth Strategies - The company plans to expand its market share in Africa while leveraging its experience to enter Latin America and Central Asia, thereby unlocking further growth opportunities [5] - In addition to diapers, Leshushi is rapidly growing its sanitary napkin segment and aims to expand into other complementary product categories such as pull-ups and wet wipes [5]
中金：首予乐舒适“跑赢行业”评级 目标价40港元