Group 1 - The core viewpoint of the article highlights the significant oversubscription of the initial public offering (IPO) of the baby diaper manufacturer, Le Shushi, with a subscription amount reaching HKD 323.1 billion, which is 1,356 times the public offering amount of HKD 238 million [1] - Le Shushi plans to issue 90.884 million shares at an offering price between HKD 24.2 and HKD 26.2, aiming to raise up to HKD 2.38 billion, with a minimum entry fee of approximately HKD 5,292.9 for one lot of shares [1] - The company is expected to be listed on November 10, with China International Capital Corporation, CITIC Securities, and GF Securities acting as joint sponsors [1] Group 2 - Le Shushi is a multinational hygiene products company focusing on emerging markets in Africa, Latin America, and Central Asia, primarily engaged in the development, manufacturing, and sales of baby diapers, baby pull-ups, sanitary napkins, and wet wipes [1] - The majority of Le Shushi's revenue comes from sales to African customers, with East Africa contributing 46.5%, West Africa 39.5%, Central Africa 10.6%, and Latin America and Central Asia accounting for 3.3% and 0.1%, respectively, in the first four months of this year [1] - According to Frost & Sullivan, Le Shushi ranks first in the African baby diaper and sanitary napkin markets by sales volume, with market shares of 20.3% and 15.6%, respectively [2] Group 3 - The founders of Le Shushi, Shen Yanchang and Yang Yanjuan, hold a combined 64.42% stake in the company, with their registered address in Hong Kong [2] - The cornerstone investors include BA Capital, Arc Avenue, Arcane Nexus, and several others, with a total investment of USD 139 million (approximately HKD 1.08 billion), representing 45.34% of the initial offering size at the maximum price of HKD 26.2 [2] Group 4 - The net proceeds from the fundraising will be allocated as follows: 71.4% for expanding overall production capacity and upgrading production lines, 11.6% for marketing and promotional activities in Africa, Latin America, and Central Asia, 4.7% for strategic acquisitions in the hygiene products sector, and 0.4% for upgrading the CRM system [3] - Additionally, 2.6% will be used for hiring management consulting firms to analyze new markets and products, while 9.3% will be allocated for working capital and general corporate purposes [3]

Core Viewpoint - The Hong Kong stock market is witnessing a surge in consumer enterprises, with notable IPOs like LeShuShi, which aims to become the "first African consumer goods manufacturer" listed in Hong Kong, leveraging its strong position in the African market and the hygiene products sector [1][4]. Group 1: Company Overview - LeShuShi is a multinational hygiene products company focusing on emerging markets such as Africa, Latin America, and Central Asia, primarily selling baby diapers, sanitary napkins, and wet wipes, with a leading position in the African market [4][7]. - The company has achieved significant interest in its Hong Kong IPO, with a subscription rate of 2,358 times, indicating strong demand from both institutional and retail investors [1][2]. Group 2: Market Potential - Africa is characterized as the "youngest continent," with a high potential for economic development and consumer upgrades, as evidenced by a projected 1.8% compound annual growth rate in newborn numbers from 2020 to 2024 [7][8]. - The penetration rate for baby diapers in Africa is approximately 20%, significantly lower than the 70% to 86% rates in Europe, North America, and China, presenting a vast market opportunity for LeShuShi [8][9]. Group 3: Financial Performance - LeShuShi has demonstrated strong financial performance, with revenues of $320 million, $411 million, and $454 million projected for 2022, 2023, and 2024, respectively, alongside net profits of $18.4 million, $64.7 million, and $95.1 million, showing a growth rate of 251.7% and 47.0% for 2023 and 2024 [11][12][20]. - The company's operating cash flow has also increased significantly, from $13.57 million in 2022 to $109 million in 2024, indicating robust cash generation capabilities [12][13]. Group 4: Valuation and Investment Appeal - LeShuShi's estimated P/E ratio is around 20x, which is considered reasonable given its unique positioning in the market and growth potential compared to peers [15][20]. - The company has attracted significant institutional backing, including investments from the International Finance Corporation (IFC) and prominent investment firms, enhancing its credibility and growth prospects [21][23]. Group 5: Future Growth Prospects - LeShuShi is expanding its operations into Latin America, replicating its successful business model from Africa, which is expected to drive further growth [24][25]. - The company aims to evolve into a "Procter & Gamble of Africa" by leveraging capital market support for acquisitions and expanding its product offerings through a multi-brand strategy [24][26].

Core Viewpoint - The multinational hygiene products company, LeShuShi, is set to launch its IPO in Hong Kong, potentially becoming the first company headquartered in the Middle East to list there, with a global offering of 90.88 million shares priced between HKD 24.2 and HKD 26.2 per share [1][2]. Group 1: Company Overview - LeShuShi, known as the "King of Diapers in Africa," has established itself as a leading player in the hygiene products market, particularly in Africa, with significant sales in emerging markets like Latin America and Central Asia [3][5]. - The company was founded by a couple, Shen Yanchang and Yang Yanjuan, who have over 20 years of experience in international markets, particularly in Africa [6]. Group 2: Financial Performance - LeShuShi's revenue has shown consistent growth, reaching USD 320 million in 2022, USD 411 million in 2023, and projected to grow to USD 454 million in 2024 [5]. - The company has sold a total of 10.8 billion diapers from 2022 to 2024, with sales increasing from 2.995 billion in 2022 to 4.123 billion in 2024 [3]. Group 3: Market Position - As of 2024, LeShuShi holds the largest market share in Africa for baby diapers at 20.3% and for sanitary napkins at 15.6%, while ranking second in revenue market share for both categories [5]. - The company has established eight production facilities and 51 production lines in Africa, with a core production capacity of 6.301 billion diapers and 2.854 billion sanitary napkins annually [5]. Group 4: IPO and Fund Utilization - The IPO is expected to raise up to HKD 2.38 billion, with over 70% of the funds allocated for capacity expansion and production line upgrades, including new production lines in Ghana and Senegal [2][6]. - Approximately 11.6% of the raised funds will be used for marketing and promotional activities in Africa, Latin America, and Central Asia [7].

Group 1: Market Overview - The Hong Kong stock market showed weakness, with the Hang Seng Index down 0.79% to 25,952.4, and the Hang Seng Tech Index down 1.76% [2] - Northbound capital saw a net inflow of 9.832 billion HKD, with the most bought stocks being CNOOC, Xiaomi, and China Mobile, while Alibaba, SMIC, and Tencent were the most sold [2][3] - Global market sentiment remains low, with the S&P 500 and Nasdaq down 1.2% and 2% respectively, amid expectations of a 10% to 15% market correction due to high valuations and cooling interest rate cut expectations [4] Group 2: Company Overview - The specific company, 乐舒适 (Leshushi), focuses on emerging markets in Africa, Latin America, and Central Asia, producing hygiene products such as baby diapers and sanitary napkins [7] - Leshushi has established a wide sales network across over 30 countries, with 18 sales branches and more than 2,800 wholesalers and retailers [7] - The company ranks first in the African baby diaper and sanitary napkin markets, with a total production capacity of 6.3 billion baby diapers and 2.85 billion sanitary napkins annually [7][8] Group 3: Financial Performance - Revenue for Leshushi is projected to grow from 320 million USD in 2022 to 454 million USD in 2024, with a year-on-year growth of 28.6% and 10.5% respectively [8] - Net profit is expected to increase significantly from 18 million USD in 2022 to 95 million USD in 2024, reflecting a growth of 251.7% and 47.0% [8] - The gross margin is forecasted to improve from 23.0% in 2022 to 35.2% in 2024, driven by market penetration and population growth [8] Group 4: Industry Outlook - The market for baby diapers and sanitary napkins in emerging markets is steadily growing, with Africa's market expected to reach 3.8 billion USD by 2024, growing at a CAGR of 6.8% [9] - The brand concentration in the African baby diaper market is high, with the top five players holding 61.2% of the market share, and Leshushi's core brand Softcare leading with a 20.3% share [9] - The Latin American market is projected to grow from 6.9 billion USD in 2020 to 7.7 billion USD by 2024, with a CAGR of 2.7% [9] Group 5: Competitive Advantages - Leshushi benefits from a strong position in emerging markets with significant growth potential and a well-established sales network [10] - The company has local factories and a global supply chain that supports its sustainable operations [10] - The ability to replicate successful strategies in other markets presents further opportunities for growth [10] Group 6: IPO Information - The IPO subscription period is from October 31 to November 5, 2025, with trading expected to commence on November 10 [12] - The cornerstone investors have subscribed for 47.14% of the offering, indicating strong interest [13] - The net proceeds from the IPO are estimated to be approximately 2.141 billion HKD, with 71.4% allocated for capacity expansion and production upgrades [14]

Core Viewpoint - The company LeShuShi (02698), a manufacturer of baby diapers, has seen significant interest in its IPO, with a subscription amount reaching HKD 323.1 billion, which is 1356 times oversubscribed compared to the public offering amount of HKD 238 million [1] Group 1: IPO Details - The IPO subscription period is from October 31 to November 5, with an expected listing date of November 10 [1] - LeShuShi plans to issue 90.884 million shares at an offering price between HKD 24.2 and HKD 26.2, aiming to raise up to HKD 2.38 billion [1] - The company will not implement a mandatory clawback mechanism, with 10% of shares allocated for public offering, and the overall coordinators can increase this to a maximum of 15% [1] Group 2: Company Overview - LeShuShi is a multinational hygiene products company focusing on emerging markets in Africa, Latin America, and Central Asia, primarily engaged in the development, manufacturing, and sales of baby diapers, sanitary napkins, and wet wipes [1] - The company operates under several brands, including Softcare, Veesper, Maya, Cuettie, and Clincleer, with sales covering over 30 countries in West, East, and Central Africa [1] Group 3: Market Position - According to Frost & Sullivan, LeShuShi ranks first in the African baby diaper and sanitary napkin markets by volume, with market shares of 20.3% and 15.6%, respectively [2] - In terms of revenue for 2024, the company ranks second in the African baby diaper and sanitary napkin markets, with market shares of 17.2% and 11.9% [2] Group 4: Shareholder Information - The founders of LeShuShi, Shen Yanchang and Yang Yanjuan, hold a combined 64.42% stake in the company [2] - The founders have a history of working in Nigeria and later returned to China to establish the company [2] Group 5: Cornerstone Investors - LeShuShi has secured cornerstone investors including BA Capital, Arc Avenue, and several funds, with a total investment amounting to USD 139 million (approximately HKD 1.08 billion) [2] - If priced at HKD 26.2, the cornerstone investors' subscriptions would represent 45.34% of the initial offering size [2] Group 6: Use of Proceeds - The net proceeds from the IPO will be allocated as follows: 71.4% for expanding overall production capacity and upgrading production lines; 11.6% for marketing and promotional activities in Africa, Latin America, and Central Asia; 4.7% for strategic acquisitions in the hygiene products sector; 0.4% for upgrading the CRM system; 2.6% for hiring management consulting firms for market and product analysis; and 9.3% for working capital and general corporate purposes [3]

Core Viewpoint - The company, LeShuShi, is set to launch its global IPO on November 6, 2023, with a pricing range of HKD 24.2-26.2 per share, aiming to raise between HKD 22.0-23.8 billion, and potentially up to HKD 27.4 billion with the green shoe option. Despite institutional interest, the company faces multiple operational risks including slow market expansion and declining performance growth [1][2][3]. Group 1: IPO Details - The IPO will consist of 90.88 million shares, with a total fundraising target of HKD 22.0-23.8 billion, and a potential green shoe option raising it to HKD 25.3-27.4 billion [1]. - The net proceeds from the IPO will be allocated as follows: 71.4% for capacity expansion and production upgrades, 11.6% for marketing in emerging markets, 4.7% for strategic acquisitions, and 9.3% for working capital [2]. Group 2: Investor Participation - A strong cornerstone investor lineup includes 15 institutions investing a total of USD 139 million, representing 49.1% of the base offering size, marking the highest cornerstone participation for projects in the HKD 20-30 billion range in 2024 [3][4]. - Notably, there is a lack of industrial participants in the cornerstone investment, which may limit the company's support in supply chain integration and market channel expansion [3]. Group 3: Financial Performance - Revenue growth has slowed, with projections showing a drop from 28.6% in 2023 to 10.5% in 2024, raising concerns about sustainable growth in a maturing African market [6]. - The company reported revenues of approximately USD 3.2 billion in 2022, increasing to USD 4.5 billion in 2024, but the growth rate is expected to decline further [6][8]. - Gross margins have fluctuated, with a drop from 34.9%-35.3% in 2023-2024 to 33.6% in early 2025, primarily due to declining product prices [6]. Group 4: Operational Risks - The company faces significant inventory management issues, with inventory turnover days averaging 140 days, compared to industry leaders at around 60 days, indicating potential cash flow pressures [6][10]. - The customer concentration is low, with the top five customers contributing only 6.3% of revenue, reflecting weak customer loyalty and sales stability [6][10]. Group 5: Compliance and Valuation Concerns - The company has outstanding social security and provident fund payments totaling USD 200,000, raising compliance concerns amid a cash balance of USD 84.53 million [10]. - The IPO valuation corresponds to a price-to-earnings ratio of 19.6, which is slightly lower than Procter & Gamble but significantly higher than Kimberly-Clark, raising questions about growth sustainability given the operational risks [12].

Core Viewpoint - The company LeShuShi is set to launch its IPO on November 10, 2023, with a pricing range of HKD 24.2-26.2 per share, aiming to raise between HKD 22.0-23.8 billion, and potentially up to HKD 27.4 billion with the green shoe option. Despite institutional interest, the company faces multiple operational risks including slow market expansion and declining performance growth [1][2][3]. Group 1: IPO Details - The IPO will consist of 90.88 million shares, with a total fundraising target of HKD 22.0-23.8 billion, and a potential green shoe option raising it to HKD 25.3-27.4 billion [1]. - The cornerstone investors include 15 institutions investing a total of USD 139 million, representing 49.1% of the base offering size, marking the highest cornerstone ratio for projects in the HKD 20-30 billion range in 2024 [3][4]. - Notably, there are no industry participants among the cornerstone investors, which may limit the company's support in supply chain integration and market channel expansion [3][4]. Group 2: Financial Performance - Revenue growth has slowed, with projections showing a drop from 28.6% in 2023 to 10.5% in 2024, and a slight recovery to 15.5% in early 2025, raising concerns about sustainability [5][6]. - The gross margin has fluctuated, dropping from 34.9%-35.3% in 2023-2024 to 33.6% in early 2025, primarily due to declining prices of baby hygiene products [6][7]. - Net profit increased significantly from USD 18.39 million in 2022 to USD 64.68 million in 2023, but growth slowed to USD 33.1 million in early 2025, with a net profit margin decrease from 20.9% in 2024 to 19.3% [8][9]. Group 3: Operational Risks - The company faces significant inventory management issues, with inventory turnover days averaging 140-152 days, compared to industry leaders like Procter & Gamble and Kimberly-Clark at around 60 days [9]. - Customer concentration is low, with the top five customers accounting for only 5.2%-6.3% of revenue, indicating weak customer loyalty and potential sales instability [9]. - The company has not rectified outstanding social security and provident fund payments totaling USD 200,000, raising compliance concerns and potential regulatory risks [11]. Group 4: Valuation Concerns - The IPO valuation corresponds to a price-to-earnings ratio of 19.6, which is slightly lower than Procter & Gamble's 23.2 but significantly higher than Kimberly-Clark's 13.2, raising questions about growth sustainability [12][13]. - Given the company's reliance on a single market and slow expansion in emerging markets, the current valuation may lack sufficient growth support, leading to potential valuation adjustments if performance does not meet expectations [12][13].

Core Viewpoint - The company Leshush is on the verge of a significant milestone with its upcoming IPO on the Hong Kong Stock Exchange, having established itself as a leading player in the African diaper and sanitary napkin market over the past two decades [1] Company Overview - Leshush was spun off from the fast-moving consumer goods division of the SenDa Group, founded by Shen Yanchang in Guangzhou in February 2004 [2] - The company has a strong foothold in Africa, having initially entered the market through trade in construction materials and daily necessities, later expanding into personal care products [2][3] Market Position - According to Frost & Sullivan, Leshush ranks first in Africa's baby diaper and sanitary napkin markets by volume, with market shares of 20.3% and 15.6% respectively for 2024 [4] - In terms of revenue, Leshush ranks second in both markets, with shares of 17.2% for baby diapers and 11.9% for sanitary napkins [4] Manufacturing and Localization - Leshush has established a localized manufacturing presence in Africa, with eight factories and 51 production lines, achieving a total designed capacity of 6.3 billion baby diapers annually [5] - The company has successfully created thousands of jobs in Africa, contributing to local economic development while meeting essential consumer needs [5] Competitive Pricing Strategy - Leshush has adopted a low-cost strategy, with its baby diapers priced at approximately 9 cents per piece, significantly undercutting international competitors like Procter & Gamble and Kimberly-Clark [6] - The company has positioned itself among the top four players in the African baby diaper market, with projected sales of 4.06 billion pieces in 2024, surpassing major competitors [6] Financial Performance - Leshush's revenue grew from $320 million in 2022 to $411 million in 2023, marking a 28.6% increase, but growth slowed to 10.5% in 2024 [7] - Net profit surged from $18 million in 2022 to $65 million in 2023, but the growth rate dropped to 47% in 2024 [7] - The company's gross margin has shown a downward trend, with rates of 23.0%, 34.9%, 35.2%, and 33.6% over the past four years [7][8] Market Dynamics - The company faces challenges from rising raw material costs and increased competition as international giants localize their production in Africa [6][8] - Despite these challenges, the demographic dividend and rapid consumer spending growth in Africa remain strong growth drivers for Leshush [8]

Core Insights - The 2025 Jiangsu Province Urban Football League (referred to as "Su Super") concluded on November 1, with Vinda as the official sponsor, emphasizing the concept of "resilience" in supporting the event and contributing to the development of high-quality sports in Jiangsu [1][4]. Group 1: Event Support and Community Engagement - Vinda provided comprehensive support during the Su Super event, ensuring a positive and healthy atmosphere for players, staff, and fans, while promoting various community fitness activities across Jiangsu [4]. - The interactive model of "watching and participating" gained popularity, enhancing community engagement in sports [4]. Group 2: Corporate Commitment to Health and Local Development - Vinda has a long-standing commitment to the health sector in China, with its parent company, Golden Eagle Group, investing in Jiangsu since the 1990s, establishing a strong local business presence [4]. - The company's development philosophy aligns with national strategies such as "Healthy China 2030" and "National Fitness," showcasing its dedication to social responsibility and regional sports culture [4].

Group 1: Company Strengths - The company has established long-term stable partnerships with international retailers, pet product brands, and e-commerce channels due to its production scale, delivery capability, R&D strength, and product quality [3]. - The combined annual production capacity of domestic and overseas bases can reach 48.7 billion pet pads and 2 billion pet diapers, with delivery cycles reduced from 45 days to 2 weeks [3]. - The company focuses on R&D for eco-friendly and functional products to help clients upgrade their offerings [3]. Group 2: Sales Performance - In the first three quarters of 2025, overseas sales accounted for 92.63% of total revenue, with North America contributing 64.78%, Asia 22.37%, and Europe 4.69% [3]. - The company achieved a year-on-year sales growth of 37.18% in the first three quarters, expanding over 20 new clients primarily in Europe, Japan, South Korea, South America, and North America [3]. Group 3: Order and Production Capacity - The company has sufficient orders for the fourth quarter, with equipment operating at 100% capacity [3]. - The production base in Cambodia has fully transitioned orders from major clients, enhancing production efficiency [4]. Group 4: Profitability and Cost Management - The company anticipates improvements in gross profit margins due to declining raw material costs, optimized product structure, and increased utilization of high-margin pet diapers [4]. - The non-woven fabric business has turned profitable in the first three quarters, benefiting from industry capacity adjustments [4]. - The company plans to maintain cost control and product upgrades to further solidify its profitability [4].