Lecomfort is the No. 1 multinational brand in Africa for diapers and sanitary pads. Founded in 2009, Lecomfort was listed on the Hong Kong stock exchange in November 2025. The company’s core products include baby diapers, sanitary pads, baby pull-up diapers, and wet wipes (in 2024, the revenue shares of these products were 75%, 17%, 5%, and 3%, respectively). Its primary sales markets are emerging markets such as Africa (in 2024, the revenue shares from Africa and Latin America were 98% and 2%, respectively). In 2024, the company held market shares of 20.3% and 15.6% in Africa for baby diapers and sanitary pads, respectively, both ranking first in the market. In 2024, the company’s revenue and net profit attributable to shareholders were US$454 million and US$95 million, respectively. From 2022 to 2024, the compound annual growth rates (CAGRs) of revenue and net profit attributable to shareholders were 19% and 127%, respectively.
Emerging Markets Hygiene Products Industry: Relatively Fast Growth, Vast Potential, with a Concentrated African Market. 1) The African Market: With a high birth rate and relatively low penetration, the hygiene products industry is experiencing rapid growth. In 2024, the African market for baby diapers, pull-up diapers, and sanitary pads will reach US$3.8 billion, with a CAGR of 6.8% from 2020 to 2024—significantly higher than that of Europe, the U.S., China, and Japan (all with CAGRs below 2% from 2020 to 2024). We believe this is primarily due to Africa’s relatively high birth rate combined with lower hygiene product penetration. 2) Other Emerging Markets: In 2024, the Latin American hygiene products market will reach US$7.7 billion, roughly twice the size of the African market; however, growth in this region is slowing down, with a CAGR of about 2.7% from 2020 to 2024. We attribute this mainly to Latin America’s relatively advanced economic development level. The Central Asian market remains relatively small.
How has Lecomfort become Africa’s top-selling brand of hygiene products? 1) Localized production and a robust sales network have enabled Lecomfort to deliver high-quality, cost-effective products coupled with rapid responsiveness. Lecomfort is the African hygiene products company with the largest number of locally established manufacturing facilities. Localized production has significantly reduced tariffs and transportation costs. In 2024, Lecomfort’s baby diapers were priced at 9–20.2 cents per piece, while sanitary pads were priced at 4.5–8.5 cents per piece—prices notably lower than those of its competitors. Meanwhile, the company has set up 18 sales branches across 12 countries, covering an extensive distribution network that includes over 2,800 wholesalers, distributors, hypermarkets, and other retailers, effectively meeting the needs of grassroots markets. 2) By building a diversified portfolio of brands and products, Lecomfort has achieved positioning differentiation from global industry leaders. Unlike international brands, which largely rely on globally standardized branding and product specifications, Lecomfort has tailored its offerings to meet the unique characteristics of the African market, launching a rich array of brands and products. Take baby diapers as an example: Lecomfort boasts six sub-brands under its umbrella, each with complementary positioning and product features, providing consumers with a more diverse selection of options.
Growth Potential Assessment: We believe that Le Shu Shi You has more than five times room for growth. Le Shu Shi You ranks first in market share in Africa, and its growth is primarily driven by the expansion of the African market. Meanwhile, its presence in Latin America and Central Asia is still in its early stages, with low market shares. By establishing localized production and sales networks, it is poised to replicate its successful experience in the African market. Considering the expansion of the African market and the increase in market share in Latin America, our simplified long-term projection suggests that Le Shu Shi You’s scale could reach 2.72 billion U.S. dollars, representing approximately five times the current size—a significant growth potential.
Profit Forecast and Investment Rating: The company is the No. 1 brand in Africa for diapers and sanitary pads. Through more than two decades of experience in the African market, it has established competitive barriers in the form of localized production and sales networks as well as a multi-brand product portfolio. The company is actively expanding into the Latin American and Central Asian markets and is poised to replicate its success in the African market. We forecast the company’s net profit attributable to shareholders for 2025-2027 at US$113 million/US$133 million/US$153 million (equivalent to RMB 794 million/932 million/1.073 billion when converted at an exchange rate of 7.00 USD per dollar). In U.S. dollar terms, these figures represent year-on-year growth rates of +19.3%/+17.4%/+15.1%, respectively, corresponding to P/E ratios of 23x/20x/17x. We initiate coverage with a “Buy” rating.
Risk Warning: Risks include intensifying competition, slower-than-expected capacity expansion, fluctuations in raw material prices, and less-than-expected market expansion.
