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 ...

（1）成人失禁用品市场现状：成人失禁用品主要包括成人纸尿裤、拉拉裤和护理垫，其使用者一般为老年失禁者和残疾失禁者，其中老年失禁者为主要目 标消费群体。截至2019年末，我国60岁及以上人口总数约为2.54亿，占总人口的18.13%。根据美国疾病预防控制中心的报道，在超过65岁的老年人中， 50.9%存在尿失禁或意外大便失禁的情况。与国外发达国家（日本80%、北美60%、西欧58%）相比，我国成人失禁护理用品渗透率处在较低水平（仅 3%），主要由于消费者意识较为保守，轻度失禁群体使用失禁用品的意愿较低，中重度失禁患者是目前主要消费群体。参照发达国家发展经验，轻度失禁 产品或越来越受欢迎，老龄人口的增加以及消费者意识的提升，成人失禁用品的市场空间具备扩容潜力。在此情况下，具备线上电商等渠道和线下特通等渠 道的全渠道能力，发展全面多元的产品矩阵和品牌力，成为业内企业构筑壁垒的核心竞争力。 （2）成人失禁用品行业市场规模：近年来，我国成人失禁用品市场总体保持快速增长的趋势。根据中金企信数据，中国成人失禁用品零售市场规模从2018 年的55.3亿元人民币增长到2023年的83.1亿元人民币，2018-2023年复合增长 ...

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]

Group 1 - The core point of the article is that LeShuShi (02698) has seen a stock price increase of over 4% following the announcement of the full exercise of its over-allotment option and the completion of its price stabilization actions [1] - LeShuShi's overall coordinator fully exercised a 15% over-allotment option, involving a total of 13.6326 million shares, raising an additional net amount of HKD 345 million at a price of HKD 26.20 per share [1] - As a result, LeShuShi's total IPO fundraising has increased to HKD 2.738 billion [1] Group 2 - The company focuses on the hygiene products industry in emerging markets such as Africa, where the penetration rates for baby diapers and sanitary pads are only about 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 has advantages in product manufacturing and channel development, which may allow it to further expand in Latin America, Central Asia, and North and South Africa [1] - The company is backed by the SenDa Group, which may present opportunities for future integration of fast-moving consumer goods-related assets [1]

Market Overview - The baby diaper market is experiencing high growth despite a slowdown in the overall maternal and infant market, with the online retail transaction scale of maternal and infant products in China expected to reach 1.4 trillion yuan in 2024, maintaining a high year-on-year growth rate [1][24]. - From January to June 2025, the baby diaper segment showed outstanding performance with a year-on-year growth rate of 54%, leading other subcategories in the baby market [2][27]. Social Media Trends and Demand Insights - The social media presence of baby diapers has significantly increased, with Douyin becoming the primary channel for expectant parents to access diaper-related content, reflecting a heightened consumer interest throughout the pregnancy and parenting cycle [3][31]. - Topics such as diapers and maternal and infant products have gained substantial traction on platforms like Douyin and Xiaohongshu, indicating strong consumer engagement [3][31]. - The volume of discussions around diapers and pull-up pants has seen remarkable year-on-year growth of 74% and 69% respectively, showcasing robust market demand [4][34]. Brand Competitive Landscape - Major brands in the baby diaper market are maintaining growth momentum, with domestic brands like Babycare and Yiying leading in social media engagement [5][35]. - Babycare's Jinshan Camellia diapers and Pampers' Black Gold diapers have shown strong performance in terms of social media volume and interaction, indicating significant market influence [6]. Consumer Demand and Product Trends - Core consumer demands for diapers include breathability, comfort, and softness, with different product types (e.g., diapers, pull-up pants) emphasizing varying functional needs [7][43]. - There is a notable preference for natural materials such as Class A cotton and pure cotton, with ingredients like camellia and probiotics gaining popularity, reflecting consumers' focus on safe materials for infants [7][47]. - Key usage scenarios include outings, sleep, and seasonal variations, which impose specific functional and design requirements on diapers [8]. Social Media Marketing Performance - Social media advertising for the baby diaper industry increased by 29% year-on-year in 2025, with Douyin and Xiaohongshu emerging as the primary platforms for marketing efforts [10]. - Brands like Babycare, Huggies, and Pampers have invested significantly in Douyin, achieving notable marketing effectiveness through authentic parenting content [10]. - On Xiaohongshu, brands such as Babycare and BEBEBUS have leveraged the platform's focus on maternal and infant education to enhance engagement [10]. Future Trends and Marketing Recommendations - Brands are encouraged to continue innovating in product design, focusing on skincare, underwear-like features, and advanced absorption technologies to meet consumer demands for high-quality diapers [11]. - Marketing strategies should be tailored to the unique characteristics of each platform, with Douyin emphasizing lifestyle content and Xiaohongshu focusing on educational and experiential sharing [11]. - Enhancing user interaction through authentic experiences and emotional resonance is vital for building brand loyalty [12]. Summary - The baby diaper market is projected to maintain high growth in 2025, with increasingly refined consumer demands regarding product functionality, materials, and usage scenarios. Increased investment in social media marketing, particularly on Douyin and Xiaohongshu, is evident. Future strategies should prioritize product innovation and tailored marketing approaches to enhance competitiveness [13].

Core Insights - The report by Nint focuses on the baby diaper market, highlighting the growth trends and performance of various product categories from 2023 to 2025, with significant growth expected in pull-up pants and diapers [1] Market Overview - The baby diaper market is expected to show differentiated performance across categories, with pull-up pants projected to grow by 19% and diapers by 23% in 2025, while cloth diapers and other categories may experience negative growth [1] - The overall online sales of baby diapers are expected to remain stable in terms of revenue, but with a high growth in volume, indicating a trend of "volume growth with revenue stability" [6] Platform Performance - Different platforms exhibit significant variations in sales growth, with Platform C expected to see a 101% increase in sales in 2024, while Platforms A and B are projected to decline by 8% and 2% respectively [1] - In 2025, Platform C is anticipated to maintain high growth, while Platforms A and B will see adjustments with declines of 11% and 3% respectively [1] Product Size Trends - There is a notable surge in demand for larger diaper sizes, with online sales of 5XL expected to grow by 278% and 6XL by 40% in 2025, particularly on platforms like Douyin and JD [1] - Conversely, smaller sizes (XL and below) are experiencing negative growth on certain platforms, with Tmall reporting a 26% decline in XL and a 28% decline in 2XL [1] Price Segment Distribution - The low-end price segment (≤1.5 yuan) is projected to dominate certain platforms, with Platform A expected to have a 49% share in 2025, while the high-end and ultra-high-end segments are gradually increasing [1] - International brands like Pampers and Huggies have a relatively high share in the ultra-high-end market, while domestic brands like Yiya and Yiying perform well in the mid-to-low-end market [1] Consumer Purchasing Behavior - Consumers are showing a preference for bulk purchasing, with monthly usage accounting for 32% and stockpiling accounting for 49% of purchases, indicating a trend towards long-term storage of diapers [1]

Core Viewpoint - BUTONG GROUP (referred to as "BeBeBus") has submitted an updated prospectus for its IPO on the Hong Kong Stock Exchange after a previous application became invalid. The company aims to raise funds to enhance production capacity, expand its overseas market presence, and invest in research and development of new products [1][3]. Group 1: Company Overview - BUTONG GROUP is a Chinese company focused on designing and selling parenting products, established in November 2018. The main operating company is "创造不同（宁波）有限公司" [4]. - The company has undergone multiple rounds of financing, including A round (approximately 30 million RMB), A+ round (approximately 36 million RMB), and B round (approximately 140 million RMB) [4][5]. Group 2: Financial Performance - The revenue for BUTONG GROUP in 2022, 2023, and 2024 was approximately 507 million RMB, 852 million RMB, and 1.25 billion RMB, respectively. The gross profit for the same years was approximately 241 million RMB, 427 million RMB, and 629 million RMB, with net profits of -21 million RMB, 27 million RMB, and 58 million RMB [7][8]. - For the first half of 2025, the revenue was approximately 726 million RMB, compared to 582 million RMB in the same period of 2024, indicating growth [7][8]. Group 3: Revenue Sources - The company's revenue comes from various product sales, including travel, sleep, feeding, and infant care scenarios. The travel segment was the largest revenue source until 2024, contributing approximately 5.71 billion RMB, but its share decreased to 45.7% [10][12]. - The infant care segment has emerged as a new growth point, with revenue increasing from approximately 42 million RMB in 2022 to 3.88 billion RMB in 2024, accounting for 31.1% of total revenue [12]. Group 4: Shareholder Structure - The major shareholders include Wang Wei holding 52.95%, Shen Ling holding 6.77%, and various venture capital firms such as Tiantu Capital and Gaorong Capital [6][4]. - The executive team includes Wang Wei as the Chairman and CEO, Shen Ling as the Executive Director, and Lin Junjie as the CFO [6]. Group 5: Product and Market Strategy - The company has expanded its product offerings significantly, increasing the number of SKUs in infant care products from 142 in 2022 to 290 in the first half of 2025 [12]. - The company operates its own stores on platforms like Tmall, JD.com, and Pinduoduo, directly selling products to consumers [13].

Group 1: Financial Performance - The company's Q2 profit decreased compared to Q1 primarily due to promotional activities during the 618 sales event, impacting overall profitability [1] - The average price of adult care products remained stable compared to the previous year, with no significant data reflecting the "high price, high value" strategy in Q1 [2] - The gross profit margin in Q2 slightly declined due to the influence of the 618 promotional period [4] Group 2: Sales and Marketing Strategy - The company plans to maintain a steady investment in brand promotion while optimizing sales efficiency without necessarily increasing expenditure [2] - The sales expense ratio for the second half of the year is expected to improve compared to the same period last year [2] - The company aims for double-digit revenue growth in the second half, despite increased market competition [5] Group 3: Product Development and Innovation - The company has identified consumer pain points and is focusing on upgrading and expanding its product line, particularly in adult incontinence products [3] - High-margin products, such as cranberry products, currently have a small share in the adult incontinence product structure, as they are still in the early stages of market introduction [3] - The company plans to slow down the introduction of differentiated products while concentrating on developing flagship products like "Absorption Treasure" [3] Group 4: Market Expansion and Partnerships - The company has seen growth in institutional and specialty channel expansions, with online and offline growth rates being comparable [4] - The partnership with He Sheng Yuan for baby care products has ended, but the company plans to launch its own brand, Dudi, in Q2 2024, with a 116% year-on-year revenue increase for the brand by mid-2025 [4][5] - The company's self-branded products in the baby care segment currently account for less than 10% of the approximately 200 million revenue generated in that category [5]