Core Insights - The meeting between Ghana's Trade Minister and SenDa Group focused on future investment opportunities and manufacturing development in Ghana, particularly highlighting the importance of LeShuShi, known as the "King of Diapers in Africa" [1] Company Overview - LeShuShi submitted its application for a main board listing on the Hong Kong Stock Exchange for the second time, after its initial application in January 2025 expired. The company is backed by SenDa Group and is a leader in the African baby diaper and sanitary napkin markets, holding market shares of 20.3% and 15.6% respectively [1][2] - The founders of LeShuShi, Shen Yanchang and Yang Yanjuan, control 64.42% of the company through Century BVI. The company was established as a division of SenDa Group in 2009 and became independent in 2022 [2] Financial Performance - LeShuShi's revenue is projected to grow from approximately $320 million in 2022 to $454 million in 2024, with a compound annual growth rate exceeding double digits. Net profit is expected to increase from $18 million to $95.1 million during the same period, reflecting a growth rate of over five times [3] - In the first four months of 2025, the company reported revenue of $161 million, a year-on-year increase of 15.5%, and a net profit of $31.1 million, up 12.5% [3] - The gross profit margin improved significantly from 23.0% in 2022 to 35.2% in 2024, with a margin of 33.6% reported in the first four months of 2025 [3][4] Market Strategy - LeShuShi's pricing strategy has led to a decrease in average selling prices across its product lines, with the average price of sanitary napkins slightly increasing from 4.50 cents to 4.57 cents [4] - The company has established local production lines in Ghana since 2018, which has helped reduce costs and enhance competitiveness. This local production strategy is a key factor in maintaining high gross profit margins [4] - LeShuShi aims to further expand its market presence and product offerings through the funds raised from its IPO, focusing on capacity expansion, production upgrades, and potential acquisitions [4] Industry Context - The African market is experiencing strong population growth, with a compound annual growth rate of 1.8% in newborns from 2020 to 2024, indicating significant economic growth potential [6] - China remains Africa's largest trading partner, with trade volume reaching $295.6 billion in 2024, reflecting a 4.8% year-on-year increase. Chinese investments in Africa are diversifying into new sectors beyond traditional areas [6][7] - Many Chinese companies are adopting a localized production and brand output model in Africa, which helps reduce transportation and tariff costs while enhancing local competitiveness [7] Challenges and Opportunities - Chinese companies, including LeShuShi, face challenges such as tariff costs, regulatory pressures, and currency fluctuations. Approximately half of Chinese enterprises abroad encounter local regulatory and compliance challenges [8] - The Ghanaian government has initiated the "24-hour Economy and Export Plan" to create a better business environment, encouraging local production and fostering a positive cycle between capacity and sales [8]