Summary of Leshu Group's Conference Call Company Overview - Leshu Group holds a leading position in the diaper and sanitary napkin market in Africa, with significant market shares in countries like Ghana, Cameroon, and Kenya. The company has established 18 sales branches in 12 countries, covering over 30 countries and serving more than 25 million customers, showcasing a strong first-mover advantage [2][3][4]. Core Business Insights - The group has built an efficient and robust global supply chain with 44 production lines across eight African countries. The design capacity for diapers exceeds 5.5 billion yuan, while sanitary napkins exceed 2.5 billion yuan. Local manufacturing shortens sales cycles, and global centralized procurement ensures stable raw material supply [2][3][4]. - Leshu Group collaborates with international consulting firms to establish a digital management system, enhancing decision-making efficiency [2][3]. - The company's ESG strategy drives four strategic directions, with a localization employee training strategy resulting in 90.5% of employees being locally hired, promoting win-win cooperation [2][5]. Market Dynamics - Emerging markets like Africa exhibit strong economic vitality and growth potential, with a youthful population and rising consumer power. Africa accounts for approximately 37% to 38% of the world's annual newborns, creating a substantial market opportunity [6]. - High import tariffs (around 25%) in Africa encourage local production, while supportive government policies in countries like Ghana boost demand for sanitary products [6][10]. Competitive Advantages - Leshu Group's core advantages include: 1. First-mover advantage in the sanitary products market in Africa, establishing strong manufacturing barriers [7]. 2. An efficient global supply chain centered on international manufacturing [7]. 3. A localization strategy that emphasizes local employee training [7]. - These advantages enable the company to effectively respond to challenges in emerging markets and maintain a competitive edge [8]. Financial Performance - The company experienced rapid business growth in 2023, with a revenue increase of 19% year-on-year for the first half of 2025, driven by core regional focus, cost control, tariff advantages, and new factory openings. The gross profit margin remains stable between 33% and 35.5% [4][19][20]. Future Growth Potential - The sanitary napkin market in Africa is projected to grow significantly, with the female population expected to reach 1.2 to 1.3 billion by 2050. The usage rate of sanitary napkins among African women is anticipated to rise to two-thirds, compared to current usage rates in China [9]. - Leshu Group plans to expand its product categories beyond diapers and sanitary napkins, exploring related food sectors and considering greenfield investments or acquisitions [29]. Challenges and Strategies - Entering the African market presents challenges such as time barriers and insufficient market knowledge. The company emphasizes the importance of local experience for effective decision-making [10][11]. - Leshu Group's digital operations enhance competitiveness through partnerships with leading firms like IBM and Deloitte, achieving comprehensive digital management across various functions [13]. Regional Focus: Ghana - Ghana is a strategic market for Leshu Group, characterized by a stable political environment and significant economic growth. The government has implemented policies that support economic development, making it an attractive investment destination [45][46]. - The company has established a strong presence in Ghana, with a diversified product strategy catering to different consumer needs and leveraging local market dynamics [55][56]. Conclusion - Leshu Group is well-positioned for continued growth in emerging markets, particularly in Africa, through its robust supply chain, localized strategies, and commitment to digital transformation. The company aims to maintain its leadership in the sanitary products sector while exploring new growth opportunities in related markets.

Investment Highlights - Company is initiating coverage on Leshushi (02698) with an "outperform" rating and a target price of HKD 40.00, corresponding to a 24x P/E for 2026 [1] - Leshushi is a leading player in the African hygiene products market, benefiting from a localized approach that capitalizes on growth opportunities in emerging markets [1] Market Potential - The hygiene product consumption space in emerging markets is vast, with Africa, Latin America, and Central Asia projected to have CAGRs of 7.9%, 3.0%, and 4.8% respectively from 2025 to 2029, the highest globally [2] - Leshushi is expected to hold market shares of 20.3% in diapers and 15.6% in sanitary napkins in Africa by 2024, with potential for further expansion [1][2] Business Model - Leshushi has established a deeply localized business model that includes strong local manufacturing capabilities, cost advantages, and a differentiated product offering tailored to local needs [2] - The company has developed a comprehensive distribution network that covers over 80% of the population in core markets, supported by a mature global management structure with 90% local employees [2] Growth Strategy - The company aims to expand its market share in Africa while leveraging its experience to enter Latin America and Central Asia, thus unlocking further growth potential [2] - In addition to its core diaper category, Leshushi is rapidly growing its sanitary napkin segment and plans to expand into other complementary product categories such as pull-ups and wet wipes [2] Financial Projections - Earnings per share (EPS) are projected to be USD 0.19 and USD 0.22 for 2025 and 2026 respectively, with a CAGR of 21.1% from 2024 to 2026 [2] - The current stock price corresponds to P/E ratios of 23x and 19x for 2025 and 2026, respectively, indicating a 24% upside potential based on the target price [2]

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, while the current stock price reflects 23x and 19x P/E for 2025 and 2026 respectively, indicating market undervaluation of the company's localized advantages and growth potential in emerging markets [1][2] Group 1 - Leshushi is a leading player in the African hygiene products market, benefiting from a deep localization strategy that aligns with local market needs, thus capitalizing on growth opportunities in emerging markets [2][3] - The company is projected to have a market share of 20.3% in the African diaper market and 15.6% in the sanitary napkin market by 2024, with expectations of further widening its competitive advantage [3][4] Group 2 - Leshushi's deep localization strategy encompasses four dimensions: manufacturing, branding, distribution, and management, which collectively create a strong competitive moat [4] - The company plans to expand its market share in Africa while leveraging its experience to enter Latin America and Central Asia, thus unlocking further growth potential [5] - In addition to its core diaper category, 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]

中金发布研报称，首次覆盖乐舒适(02698)给予跑赢行业评级，目标价40.00港元，对应2026年24倍P/E， 有24%上行空间。该行预计公司2025/2026年EPS分别为0.19/0.22美元，2024-2026年CAGR为21.1%。当 前股价对应2025/2026年23/19倍P/E，该行认为市场低估了公司非洲深度本土化的壁垒优势、新兴市场中 长期成长红利及品类延伸发展前景。 中金主要观点如下： 1)区域扩张：公司在非洲核心市场享受当地消费需求释放红利的同时，拟进一步稳固并提升其市占率， 同时将复用其发展经验，继续拓展拉美、中亚等新兴市场，进一步打开成长空间;2)品类拓展：在纸尿 裤核心品类基础上，公司卫生巾第二曲线成长迅速，未来有望继续拓展拉拉裤、湿巾及其他具备协同效 应的消费品类。 风险提示：竞争加剧;市场开拓不及预期;汇率及原材料价格波动。 乐舒适为非洲卫生用品龙头，凭借贴合当地市场的深度本土化布局享受新兴市场成长红利，该行看好其 后续品类延伸及区域拓展带来的广阔成长空间。潜在催化剂：中非及拉美市场突破;新品类布局;投资并 购。 新兴市场卫品消费空间广阔，乐舒适享成长红利 受益于全球最高的出生 ...

海外消费 行 业 研 究 2025 年 12 月 14 日 投资评级：看好（维持） ——行业周报 行业走势图 数据来源：聚源 -29% -19% -10% 0% 10% 19% 29% 2024-12 2025-04 2025-08 社会服务 沪深300 相关研究报告 《柬埔寨公布对中免签政策，蜜雪、 古茗进军早餐—行业周报》-2025.12.7 《论时尚消费如何穿越周期，美图推 出电商设计 Agent — 行业周报》 -2025.11.30 AI+社交：Soul 和伊对母公司递交招股书，关注全球 AI+情绪经济变现赛道 国内当红社交 APP Soul 的母公司 Soulgate 和伊对母公司米连科技拟赴港 IPO。Soul 专注 Z 世代群体，2025 年前 8 个月 Soul 实现收入 16.83 亿元，同比增长 17.8%； 实现经调整净利润 2.86 亿元，同比增长 73.1%，经调整净利率 17%。米连科技旗 下伊对 App 聚焦 30 岁左右的成熟群体，2025 年前 6 个月米连科技实现收入 19.2 亿元，同比增长 85.9%；实现经调整净利润 2.97 亿元，同比增长 285%，经调整净 《 ...

Core Viewpoint - Cathay Securities initiates coverage on Leshushi (02698) with a "Buy" rating, highlighting the company's rapid growth in overseas markets and its position as a leader in the African hygiene products industry, which is expected to continue delivering high performance [1] Group 1: Company Overview - Leshushi is the leading player in the African hygiene products market, with key products including baby diapers, sanitary napkins, baby pull-ups, and wet wipes. In 2024, the revenue share for baby diapers and sanitary napkins is projected to be 75% and 17%, respectively [1] - The company has been operating since 2009 as a division of the Senda Group and is set to officially list on the Hong Kong Stock Exchange on November 10, 2025 [1] Group 2: Market Potential - The African hygiene products market is expected to grow at a CAGR of 7.9% from 2024 to 2029, making it the fastest-growing market globally. The market for baby diapers and sanitary napkins in Africa is highly concentrated, with Leshushi holding a market share of 17.2% and 11.9% by sales value, and leading in sales volume with 20.3% and 15.6% [2] Group 3: Competitive Advantages - Leshushi has a comprehensive brand portfolio covering all price segments, with high brand recognition and repurchase rates in the baby diaper and sanitary napkin categories. The brand awareness for Softcare/Maya/Cuettie in baby products is 89.0% with a repurchase rate of 95.7%, while for Softcare/Veesper/Clincleer in sanitary products, brand awareness is 95.4% with a repurchase rate of 92.0% [3] - The company has established a sales network across over 30 African countries, reaching more than 80% of the local population [3] - Leshushi ranks first in production capacity in both the African baby diaper and sanitary napkin markets, achieving 100% local supply [3] Group 4: Future Outlook - On the revenue side, the demand in emerging markets presents significant growth potential, and as an industry leader, Leshushi is expected to further increase its market share. The company also has room for improvement in production capacity utilization, with funds raised earmarked for capacity expansion [4] - On the profit side, the company's gross margin is projected to improve in 2023 and 2024, with brand upgrades and structural optimization expected to enhance profitability, offsetting potential adverse fluctuations in raw material costs [4]

Core Viewpoint - Cathay Securities initiates coverage on Leshushi (02698) with a "Buy" rating, highlighting the company's rapid growth in overseas markets and its position as an industry leader poised to benefit from growth dividends, alongside expected capacity ramp-up [1] Group 1: Company Overview - Leshushi is the leading player in the African hygiene products market, with key products including baby diapers, sanitary napkins, baby pull-ups, and wet wipes, projected to generate 75% and 17% of revenue from baby diapers and sanitary napkins respectively in 2024 [1] - The company has been operating since 2009 as a division of Senda Group and has established a leading position in Africa through a brand matrix and local production capacity, officially listing on the Hong Kong Stock Exchange on November 10, 2025 [1] Group 2: Market Potential - The African hygiene products market is expected to grow at a CAGR of 7.9% from 2024 to 2029, the highest globally, with a highly concentrated market for baby diapers and sanitary napkins, where Leshushi ranks second in sales value with market shares of 17.2% and 11.9% respectively, and first in sales volume with shares of 20.3% and 15.6% [2] Group 3: Competitive Advantages - Leshushi has a comprehensive brand coverage across various price segments, with high brand recognition and repurchase rates in both baby diapers and sanitary napkins, achieving 89.0% and 95.4% recognition respectively [3] - The company has over 15 years of experience in the African market, with a sales network covering more than 30 countries, reaching over 80% of the local population [3] - Leshushi ranks first in production capacity for both baby diapers and sanitary napkins in Africa, achieving 100% local supply as of 2024 [3] Group 4: Future Outlook - On the revenue side, the demand for hygiene products in emerging markets presents significant growth potential, with Leshushi expected to further increase its market share. The company also has room for improvement in capacity utilization, with funds raised earmarked for capacity expansion [4] - On the profit side, the company's gross margin is projected to improve in 2023 and 2024, with brand upgrades and structural optimization expected to enhance profitability, offsetting potential adverse fluctuations in raw material costs [4]

Investment Rating - The report assigns an "Accumulate" rating to the company [6]. Core Insights - The company is a leading player in the African hygiene products market and has officially listed on the Hong Kong Stock Exchange. The emerging market for hygiene products shows high growth potential, and the company is expected to maintain strong performance [2][11]. Financial Summary - Total revenue is projected to grow from $411.37 million in 2023 to $669.08 million by 2027, reflecting a compound annual growth rate (CAGR) of 28.6% in 2023 and a gradual decline to 12.9% by 2027 [4]. - Net profit is expected to increase significantly from $64.68 million in 2023 to $147.41 million in 2027, with a remarkable growth of 251.7% in 2023 [4]. - The company’s price-to-earnings (PE) ratio is forecasted to be 3.32 in 2023, dropping to 16.22 by 2027, indicating a potential increase in valuation as earnings grow [4]. Industry Overview - The African hygiene products market is expected to grow at a CAGR of 7.9% from 2024 to 2029, positioning it as the fastest-growing market globally [11]. - The market is highly concentrated, with the company holding a market share of 17.2% in baby diapers and 11.9% in sanitary napkins by revenue, while leading in sales volume with 20.3% and 15.6% respectively [11][19]. Competitive Advantages - The company has a comprehensive brand portfolio covering various price segments, with high brand recognition and repurchase rates in the baby diaper and sanitary napkin categories [11][19]. - It has established a robust distribution network across over 30 countries in Africa, reaching more than 80% of the local population [11][19]. - The company achieves 100% local production in Africa, which enhances its supply chain efficiency and cost-effectiveness [11][19]. Future Outlook - Revenue growth is anticipated to be driven by increasing market share in emerging markets and improved production capacity utilization [11][19]. - Profit margins are expected to benefit from brand upgrades and structural optimization, offsetting potential adverse fluctuations in raw material prices [11][19]. Earnings Forecast - The company’s earnings per share (EPS) are projected to be $0.17, $0.21, and $0.24 for the years 2025, 2026, and 2027 respectively [11][15]. - Revenue from key products such as baby diapers, pull-ups, sanitary napkins, and wet wipes is expected to grow significantly, with specific growth rates of 10.1%, 37.2%, 24.8%, and 37.7% respectively from 2025 to 2027 [15][16]. Valuation Analysis - The report suggests a target price of $5.19 per share (equivalent to 40.36 HKD), based on a PE ratio of 30x for 2025, reflecting the company's strong growth potential in overseas markets [11][17].

天眼查App显示，近日，山东九米卫生用品有限公司成立，法定代表人为徐嘉武，注册资本300万人民 币，经营范围为一般项目：卫生用品和一次性使用医疗用品销售；化妆品批发；个人卫生用品销售；第 一类医疗器械销售；纸制品制造；第一类医疗器械生产；第一类医疗设备租赁；化妆品零售；互联网销 售（除销售需要许可的商品）；货物进出口；技术进出口；技术服务、技术开发、技术咨询、技术交 流、技术转让、技术推广。（除依法须经批准的项目外，凭营业执照依法自主开展经营活动）许可项 目：卫生用品和一次性使用医疗用品生产。（依法须经批准的项目，经相关部门批准后方可开展经营活 动，具体经营项目以相关部门批准文件或许可证件为准）。 ...

Group 1 - The core viewpoint of the article highlights that LeShuShi (02698) has seen a stock price increase of over 4%, currently trading at HKD 31.28, with a trading volume of HKD 19.53 million [1] - LeShuShi has fully exercised its over-allotment option, raising an additional net amount of HKD 345 million, bringing the total IPO fundraising to HKD 2.738 billion [1] - The company focuses on the hygiene products sector in emerging markets, particularly in Africa, where the penetration rates for baby diapers and sanitary pads are significantly lower compared to mature markets, indicating substantial growth potential [1] Group 2 - According to CITIC Securities, the penetration rates for baby diapers and sanitary pads in Africa are approximately 20% and 30% respectively, compared to 70%-90% in mature markets, suggesting a large room for growth [1] - The rapid economic growth in emerging markets is expected to drive an increase in penetration rates for hygiene products [1] - LeShuShi, backed by the SenDa Group, may have opportunities for future integration of fast-moving consumer goods assets [1]