Company Overview - Leshu Shi operates in emerging markets such as Africa, Latin America, and Central Asia, focusing on hygiene products like diapers and sanitary pads[1] - The company has established a sales network across over 30 countries, with 18 branches and more than 2,800 wholesalers and retailers as of April 30, 2025[1] Financial Performance - Revenue for 2022, 2023, and 2024 was $320 million, $411 million, and $454 million, reflecting year-on-year growth of 28.6% and 10.5% respectively; revenue for the first four months of 2025 was $161 million, up 15.5%[2] - Net profit for the same years was $18 million, $65 million, and $95 million, with growth rates of 251.7% and 47.0%; net profit for the first four months of 2025 was $31 million, a 12.5% increase[2] - Gross margin improved from 23.0% in 2022 to 35.2% in 2024, with a gross margin of 33.6% in the first four months of 2025[2] Market Trends - The African market for baby diapers is projected to grow from $2.9 billion in 2020 to $3.8 billion in 2024, with a CAGR of 6.8%[3] - Latin America's market is expected to increase from $6.9 billion in 2020 to $7.7 billion in 2024, with a CAGR of 2.7%[3] - Central Asia's market is forecasted to grow from $0.4 billion in 2020 to $0.5 billion in 2024, with a CAGR of 4.5%[3] Competitive Position - Leshu Shi holds the largest market share in Africa's baby diaper market at 20.3% and in the sanitary pad market at 15.6%[3] - The top five players in the African baby diaper market account for 61.2% of the market share, indicating high brand concentration[3] Opportunities and Risks - The company benefits from a strong position in emerging markets and a well-established sales network[4] - Risks include intense competition from global players and potential shifts in consumer preferences[5] IPO Details - The IPO is scheduled from October 31 to November 5, 2025, with trading starting on November 10, 2025[6] - The expected price range for shares is HKD 24.2 to 26.2, with total fundraising estimated at HKD 2.199 to 2.381 billion before greenshoe options[9] Investment Recommendation - The IPO rating is 5.3 out of 10, based on operational performance, industry outlook, valuation, and market sentiment[8] - Despite a higher valuation compared to peers, the growth potential in emerging markets makes the stock attractive for investment[13]

Core Insights - A new individual business named Dingcheng District Shurou Hygiene Products Store has been established, with a registered capital of 30,000 RMB [1] - The legal representative of the business is Zhou Fumei [1] - The business scope includes sales of personal hygiene products, medical disposable products, paper products, maternal and infant products, paper product manufacturing, marketing planning, and internet sales (excluding items requiring permits) [1] Company Overview - The registered capital of the new business is 30,000 RMB [1] - The business is categorized as an individual business entity [1] Business Activities - The business will engage in the sale of personal hygiene products and disposable medical supplies [1] - It will also manufacture paper products and sell maternal and infant products [1] - Marketing planning and internet sales are included in its operational scope [1]

Core Insights - The Hong Kong stock market is set to witness its first listing from a Middle Eastern company, marking a significant milestone after years of promotional activities [1][3] - Softcare Limited, a company focused on hygiene products in emerging markets, is preparing for its global offering in Hong Kong with a maximum share price of HKD 26.20 [1][2] Group 1: Company Overview - Softcare Limited specializes in the development, manufacturing, and sales of baby and women's hygiene products, including diapers and sanitary pads, primarily targeting markets in Africa, Latin America, and Central Asia [2] - The company has established production facilities in eight African countries and has expanded its operations to Latin America and Central Asia, with a significant portion of its revenue generated from African sales [2] Group 2: Market Context - The listing of Softcare Limited is seen as a result of Hong Kong's efforts to attract Middle Eastern companies, with the Hong Kong Monetary Authority and financial regulators signing a memorandum of cooperation [1][3] - The Middle Eastern IPO market has been active, with exchanges in Saudi Arabia and the UAE ranking among the top globally in terms of IPO fundraising [3] Group 3: Strategic Initiatives - Hong Kong has been enhancing its cooperation with the Middle East through various initiatives, including the introduction of new cross-regional investment products and capital investments [3][4] - The Hong Kong Trade Development Council's research highlights Hong Kong's role as a gateway to the Asian market, offering good corporate governance and increased visibility for companies [5] Group 4: Challenges and Considerations - Despite the opportunities, challenges such as language barriers and cultural differences may hinder Middle Eastern companies from listing in Hong Kong [5] - The requirement for companies to adhere to Environmental, Social, and Governance (ESG) reporting standards may pose difficulties for some Middle Eastern firms [5] Group 5: Future Prospects - The Hong Kong government is accelerating the establishment of a second economic and trade office in Saudi Arabia to further enhance collaboration [5][6] - Hong Kong's diverse financial tools and status as a major IPO market position it as a valuable partner for the rapid development of infrastructure projects in the Middle East [6]

Investment Rating - The report suggests a cautious subscription for the company’s IPO [1][4]. Core Insights - The company focuses on developing, manufacturing, and selling health products, particularly baby diapers, baby pull-ups, sanitary napkins, and wet wipes, in rapidly growing emerging markets such as Africa, Latin America, and Central Asia [2]. - According to Frost & Sullivan, the company ranks first in the African baby diaper market and sanitary napkin market with market shares of 20.3% and 15.6%, respectively, based on 2024 sales volume [2]. - The company has a strong presence in the African market and is a significant player in emerging markets, benefiting from over 15 years of multinational operational strategy [2]. Market Growth Potential - The market for baby diapers, baby pull-ups, and sanitary napkins in emerging markets is steadily growing. In Africa, the market size is projected to increase from USD 2.9 billion in 2020 to USD 3.8 billion in 2024, with a compound annual growth rate (CAGR) of 6.8% [3]. - The Latin American market is expected to grow from USD 6.9 billion in 2020 to USD 7.7 billion in 2024, with a CAGR of 2.7% [3]. - In Central Asia, the market size is anticipated to rise from USD 0.4 billion in 2020 to USD 0.5 billion in 2024, with a CAGR of 4.5% [3]. Financial Performance - The company reported revenues of USD 411.4 million, USD 454.4 million, and USD 161.3 million for the years ending in 2023, 2024, and the four months ending April 30, 2025, respectively, reflecting year-on-year growth rates of 28.6%, 10.5%, and 15.5% [3]. - Net profits for the same periods were USD 64.7 million, USD 95.1 million, and USD 31.1 million, with year-on-year growth rates of 251.7%, 47.0%, and 12.5% [3]. Valuation - The IPO price range corresponds to a 2024 price-to-earnings (PE) ratio of approximately 19.8 to 21.5 times, indicating a potentially high valuation [4].

Economic Growth - Hong Kong's economy shows positive momentum with a 3.8% growth in the third quarter, driven by resilient exports and accelerated local consumption [1] - The number of visitors to Hong Kong continues to record double-digit growth, indicating a recovery in tourism [1] - The government expects to meet its annual economic growth target for the year [1] Government Initiatives - The Hong Kong government is actively preparing its second economic and trade office in the Middle East, located in Riyadh, Saudi Arabia [1] - The Hong Kong Stock Exchange has recently opened an office in Riyadh, enhancing financial collaboration between the two regions [1] - Financial regulatory bodies from both regions have signed a memorandum of cooperation, facilitating the mutual listing of ETFs [1] Company Spotlight - The Middle Eastern company preparing for an IPO in Hong Kong is Leshushit Limited, known for its focus on emerging markets in Africa, Latin America, and Central Asia [2] - Leshushit Limited plans to issue 90.884 million shares globally, with 10% allocated for public offering in Hong Kong and a price range of HKD 24.2 to HKD 26.2 per share [2] - The company is recognized as the "King of African Diapers" and specializes in the development, manufacturing, and sales of hygiene products [2] Collaboration and Innovation - There are significant synergies between Hong Kong and Saudi Arabia in promoting innovation and digital development [2] - Hong Kong Science Park has already seen Saudi startups come to Hong Kong following a previous collaboration agreement [2] - Saudi Arabia shows interest in Hong Kong's tech and startup sectors, particularly in areas like AI, healthcare, fintech, construction technology, green technology, and smart city management [2]

Economic Overview - Hong Kong's economy shows positive momentum with a 3.8% growth in the third quarter, driven by resilient exports and accelerating local consumption [1] - The number of visitors to Hong Kong continues to record double-digit growth, indicating a recovery in tourism [1] - The government anticipates achieving its annual economic growth target for the year [1] Government Initiatives - The Hong Kong government is actively preparing its second economic and trade office in the Middle East, located in Riyadh, Saudi Arabia [1] - The Hong Kong Stock Exchange has recently opened an office in Riyadh, enhancing financial collaboration between the two regions [1] - Financial regulatory bodies from both regions have signed a memorandum of cooperation, facilitating the mutual listing of ETFs [1] Company Spotlight - The Middle Eastern company planning to list in Hong Kong is Lush Comfort Ltd, known for its focus on emerging markets in Africa, Latin America, and Central Asia [2] - Lush Comfort Ltd specializes in the development, manufacturing, and sales of hygiene products, including baby diapers and sanitary products [2] - The company plans to issue 90.884 million shares globally, with 10% allocated for public offering in Hong Kong and a price range of HKD 24.2 to HKD 26.2 per share, aiming for a listing on November 10 [2] Collaboration and Innovation - There are significant synergies between Hong Kong and Saudi Arabia in promoting innovation and digital development [2] - Following a previous collaboration, Saudi startups have begun to integrate into Hong Kong's startup ecosystem, indicating growing interest in sectors like AI, healthcare, fintech, construction technology, green technology, and smart city management [2]

Core Viewpoint - Yiyi Co., Ltd. experienced a 5.02% decline in stock price, trading at 29.14 CNY per share, with a total market capitalization of 5.388 billion CNY as of the report date [1]. Company Overview - Yiyi Co., Ltd. is located in the Zhangjiawo Industrial Zone of Xiqing District, Tianjin, and was established on May 10, 1990. The company was listed on May 18, 2021. Its main business involves the research, production, and sale of disposable hygiene products and non-woven fabrics [1]. - The revenue composition of Yiyi Co., Ltd. is as follows: 93.91% from pet disposable hygiene products, 4.85% from non-woven fabrics, 1.01% from personal disposable hygiene products, and 0.24% from other sources [1]. Fund Holdings - According to data, the Tongtai Fund has a significant holding in Yiyi Co., Ltd. The Tongtai Huize Mixed A Fund (008050) held 47,800 shares in the third quarter, accounting for 8.49% of the fund's net value, making it the fourth-largest holding [2]. - The Tongtai Huize Mixed A Fund was established on November 20, 2019, with a current size of 9.852 million CNY. Year-to-date returns are 2.43%, ranking 7560 out of 8223 in its category; over the past year, returns are 7.93%, ranking 6354 out of 8115; since inception, the fund has experienced a loss of 33.44% [2]. - The fund managers, Ma Yi and Mai Jianpei, have tenures of 11 years and 176 days, respectively. Ma Yi manages assets totaling 2.718 billion CNY, with the best return during his tenure being 43.7% and the worst being -0.63%. Mai Jianpei manages 231 million CNY, with the best return of 22.27% and the worst of -0.55% [2].

Core Viewpoint - The company, Leshu Comfort, is set to list on the Hong Kong Stock Exchange and is a leading player in the African hygiene products market, ranking first in both the baby diaper and sanitary napkin markets by production volume in 2024 [1][2]. Market Position and Growth Potential - Leshu Comfort focuses on emerging markets in Africa, Latin America, and Central Asia, with a strong emphasis on baby and female hygiene products [2][3]. - The company benefits from a young population and high birth rates in these regions, providing a growing customer base for baby hygiene products [2]. - The sanitary napkin market is experiencing significant growth due to rising female hygiene awareness and urbanization, indicating a substantial unmet demand [2]. Sales and Distribution Network - The company has established a broad sales network across over 30 countries, with 18 sales branches in 12 countries and a network of more than 2,800 wholesalers, distributors, and retailers [3]. - This extensive network is a core competitive advantage, reflected in the sales data showing rapid growth in product volumes [3]. Financial Performance - Leshu Comfort has shown stable revenue growth, with an increase from $320 million in 2022 to $454 million in 2024, representing a compound annual growth rate (CAGR) of 19.2% [4]. - The company's net profit surged from $18.39 million in 2022 to $95.11 million in 2024, indicating a growth rate of 4.2 times, significantly outpacing revenue growth [4]. - For the first four months of 2025, revenue increased by 15.5% year-on-year, from $140 million to $161 million [4]. Product Analysis - Baby diapers remain the core business, accounting for approximately 75% of revenue, with sales volume growing from 2.995 billion units in 2022 to 4.123 billion units in 2024, a 37.7% increase [6]. - The average selling price of baby diapers has decreased slightly, indicating potential pricing pressure due to increased competition [6]. - Sanitary napkins are emerging as a growth engine, with sales volume increasing from 958 million units in 2022 to 1.634 billion units in 2024, a 70.6% increase, and the average selling price rising from $4.50 to $4.74 [7]. Challenges and Risks - The company faces significant foreign exchange risks, having recorded a $13.75 million loss in 2023 due to currency fluctuations, which could impact future profitability [9]. - The declining average selling price of baby diapers suggests increased competition, which may pressure profit margins [9][10]. - Rising operational costs and increased spending on sales, administration, and research may erode net profit margins if revenue growth does not keep pace [10].

Core Viewpoint - The company, Le Comfort, is set to become a significant player in the emerging market consumer sector by listing on the Hong Kong Stock Exchange, with a strong market position in Africa's hygiene products industry [1][2]. Market Position - Le Comfort is the leading company in Africa's baby diaper and sanitary napkin markets, holding market shares of 20.3% and 15.6% respectively, based on 2024 production estimates [2]. - The company has a well-established sales network across over 30 countries in Africa, Latin America, and Central Asia, with 18 sales branches and a network of over 2,800 wholesalers and retailers [3]. Financial Performance - The company's revenue grew from $320 million in 2022 to $454 million in 2024, reflecting a compound annual growth rate (CAGR) of 19.2% [4]. - For the first four months of 2025, revenue increased by 15.5% year-on-year, reaching $161 million, while net profit surged from $18.39 million in 2022 to $95.11 million in 2024, a 4.2-fold increase [4]. Product Analysis - Baby diapers account for approximately 75% of the company's revenue, with sales volume increasing from 2.995 billion units in 2022 to 4.123 billion units in 2024, a growth of 37.7% [6]. - Sanitary napkins have become a significant growth driver, with sales volume rising from 958 million units in 2022 to 1.634 billion units in 2024, a 70.6% increase [7]. Profitability and Risks - The average selling price of baby diapers has decreased from $8.37 in 2022 to $8.29 in 2024, indicating increased competition in the market [6]. - The company faces foreign exchange risks, having recorded a $13.75 million loss in 2023 due to currency fluctuations, which could impact future profitability [9]. - The gross margin has shown signs of pressure, declining from 34.9% to 33.6% in the first four months of 2025, suggesting potential challenges in maintaining profitability amidst rising costs and competitive pressures [10].

Group 1 - The company, 乐舒适 (02698.HK), is conducting an IPO with a total of 90,884,000 shares available for sale, with 9,088,400 shares allocated for the Hong Kong public offering and 81,795,600 shares for international offering [2][4] - The expected price range for the shares is between HKD 24.20 and HKD 26.20, with a maximum fundraising target of approximately HKD 23.81 billion [4][5] - The IPO is set to take place from October 31, 2025, to November 5, 2025, with the listing date on November 10, 2025 [3][4] Group 2 - The company plans to allocate approximately 71.4% of the net proceeds from the IPO for expanding overall production capacity and upgrading production lines [6] - About 11.6% of the funds will be used for marketing and promotional activities in Africa, Latin America, and Central Asia from 2026 to 2029 [6] - The company has secured 15 cornerstone investors who have collectively subscribed for USD 139 million (approximately HKD 1.08 billion) of the offering [5][6] Group 3 - The major shareholder structure post-IPO indicates that沈延昌 and 杨艳娟, through Century BVI, will hold 54.75% of the shares [7][8] - The company operates multiple brands, including Softcare, Veesper, Maya, Cuettie, and Clincleer, focusing on the development, manufacturing, and sales of hygiene products [8] - According to a report by Frost & Sullivan, 乐舒适 ranks first in the African market for baby diapers and sanitary napkins by volume, with market shares of 20.3% and 15.6%, respectively [8]