Core Insights - Leshu Shih, known as the "King of Diapers in Africa," officially listed on the Hong Kong Stock Exchange, opening at HKD 34.98 per share, a 33.5% increase, and closing at HKD 33, a 25.95% rise, with a market capitalization of HKD 199.94 billion [4][5] - The company holds the largest market shares in Africa for baby diapers and sanitary napkins, with 20.3% and 15.6% respectively in 2024 [5][6] - Leshu Shih's revenue grew from USD 320 million in 2022 to USD 454 million in 2024, while net profit increased from USD 18 million to USD 95 million during the same period [5][6] Company Overview - Leshu Shih has established 18 sales branches across 12 countries, covering over 2,800 wholesalers, distributors, supermarkets, and other retailers [5] - The company sold a total of 10.8 billion baby diapers from 2022 to 2024, with sales increasing from 2.995 billion in 2022 to 4.123 billion in 2024 [5][6] - The company's revenue from baby diapers decreased from 78.4% of total revenue in 2022 to 71.8% in the first four months of 2025, indicating a diversification in product offerings [6] Financial Performance - Revenue growth slowed significantly in 2024, with a 10.5% increase compared to 28.6% in 2023, and net profit growth decreased from 251.7% to 47.0% [5][6] - In the first four months of 2025, Leshu Shih achieved revenue of USD 160 million, a 15.5% year-on-year increase, and net profit of USD 31 million, up 12.5% [5][6] Investment Insights - The IPO attracted 15 cornerstone investors, raising USD 139 million (approximately HKD 1.08 billion), accounting for 45% of the base offering size [6][7] - Notable investors include Arc Avenue Asset Management and Black Ant Capital, each subscribing USD 20 million, while several prominent funds subscribed amounts ranging from USD 5 million to USD 10 million [7] Market Dynamics - Leshu Shih's rapid growth in Africa is compared to the early foreign brand penetration in the Chinese market, driven by a large young population, economic growth, and urbanization [7][8] - The company faces challenges in local operations, including reliance on imported raw materials, high logistics costs due to weak infrastructure, and an underdeveloped distribution network [8] - To address high operational costs in Africa, the company focuses on building localized capabilities across supply chain, distribution, and talent [8]