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]

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 [1] Group 1: Company Overview - Leshushi is a leading player in the African hygiene products market, benefiting from a localized business model that aligns with local market needs, thus enjoying growth in emerging markets [2] - The company is expected to achieve EPS of USD 0.19 and USD 0.22 for 2025 and 2026 respectively, with a CAGR of 21.1% from 2024 to 2026 [1] Group 2: Market Potential - The hygiene product market in Africa, Latin America, and Central Asia is projected to grow significantly, with CAGR estimates of 7.9%, 3.0%, and 4.8% respectively from 2025 to 2029, making it the fastest-growing globally [3] - Leshushi is expected to capture 20.3% and 15.6% of the diaper and sanitary napkin markets in Africa by 2024, with its leading position likely to strengthen [3] Group 3: Competitive Advantages - The company has established a robust localized operational model, which includes strong local manufacturing capabilities, tailored branding strategies, extensive distribution networks, and a predominantly local workforce [4] - Leshushi's distribution network covers over 80% of the population in core markets, enhancing its competitive edge [4] Group 4: Growth Strategies - The company plans to expand its market share in Africa while leveraging its experience to enter Latin America and Central Asia, thereby unlocking further growth opportunities [5] - In addition to diapers, 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]

Investment Rating - Investment rating: Positive (maintained) [1] Core Insights - The report highlights the rapid growth of the emotional economy market, with China's market expected to reach RMB 24.253 trillion in 2024 and grow at a CAGR of 22.2% until 2030, while the global market is projected to reach RMB 14.7 trillion in 2024, with a CAGR of 20.9% [38][43] - The report emphasizes the strong performance of the leading companies in the African hygiene products market, particularly LeShuShi, which has seen significant revenue and profit growth due to cost optimization and market expansion [45][46] - The report discusses the emergence of AI-driven social platforms, such as Soul and MiLian Technology, which are capitalizing on the emotional economy by offering unique user experiences and demonstrating strong financial performance [21][27] Summary by Sections Emotional Economy - The emotional economy is shifting consumer demand from material goods to experiences and emotional fulfillment, with consumers willing to pay for platforms and products that provide joy and stress relief [38] - The emotional economy market in China is expected to grow significantly, with a projected market size of RMB 24.253 trillion by 2024 and a CAGR of 22.2% from 2024 to 2030 [38][41] AI-Driven Social Platforms - Soul, a leading social app targeting Gen Z, reported a revenue of RMB 16.83 billion in the first eight months of 2025, a 17.8% increase year-on-year, with an adjusted net profit of RMB 2.86 billion, reflecting a 73.1% growth [21][23] - MiLian Technology, focusing on a more mature demographic, achieved a revenue of RMB 19.2 billion in the first half of 2025, marking an 85.9% year-on-year increase, with an adjusted net profit of RMB 2.97 billion, up 285% [27][33] African Hygiene Products Market - LeShuShi is the market leader in Africa's hygiene products sector, holding a 20.3% market share in baby diapers and a 15.6% share in sanitary napkins by volume [45] - The company's revenue grew from USD 320 million in 2022 to USD 454 million in 2024, with a CAGR of 19.2%, and its adjusted net profit increased from USD 1.839 million to USD 9.767 million during the same period, achieving a CAGR of 130.5% [45][46] - LeShuShi's product range includes over 340 SKUs, with a focus on multi-brand strategies to cater to various consumer segments [51]

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]

Core Viewpoint - LeShuShi (02698) has seen a stock price increase of over 4%, currently trading at 31.28 HKD, with a trading volume of 19.53 million HKD. The company has fully exercised its over-allotment option, raising a net amount of 345 million HKD from the IPO, bringing total fundraising to 2.738 billion HKD [1]. Company Summary - LeShuShi has fully exercised its 15% over-allotment option, involving a total of 13.6326 million shares at an offer price of 26.20 HKD [1]. - The company focuses on the hygiene products sector in emerging markets, particularly in Africa [1]. - The company is backed by SenDa Group, which may present future integration opportunities with fast-moving consumer goods assets [1]. Industry Summary - 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, indicating significant growth potential [1]. - The rapid economic growth in emerging markets is expected to drive an increase in penetration rates for hygiene products [1]. - LeShuShi aims to further expand in Latin America, Central Asia, and North and South Africa, leveraging its manufacturing and channel expertise [1].