Le Shushi is a multinational hygiene products company focused on emerging markets such as Africa, Latin America, and Central Asia. It primarily engages in the development, manufacturing, and sales of infant and feminine hygiene products, including baby diapers, pull-up diapers, sanitary napkins, and wet wipes. In January–April 2024 and 2025, the company’s revenue was US$320 million and US$160 million, representing year‑on‑year growth of 10.5% and 15.5%, respectively; net profits were US$95 million and US$31 million, up 47.0% and 8.4% year‑over‑year, respectively. We forecast that the company’s net profits for 2025/2026/2027 will be US$106 million/US$129 million/US$147 million, with year‑on‑year growth rates of 11.5%/21.4%/14.3%, corresponding to EPS of US$0.18/US$0.21/US$0.24. We initiate coverage with a “Buy” rating and a target price of HK$38.
Report Summary
A multinational hygiene products company focused on emerging markets with an extensive sales network. Le Shun Shi is a multinational hygiene products company specializing in emerging markets such as Africa, Latin America, and Central Asia. It operates several brands, including Softcare, Veesper, Maya, Cuettie, and Clincleer. Building on its core brand, Softcare, the company has continuously expanded its portfolio of hygiene products based on baby diapers and adopted a multi‑brand development strategy to meet and serve the needs of a broader consumer base. Le Shun Shi has established a wide-ranging sales network spanning more than 30 countries across Africa, Latin America, and Central Asia. As of April 30, 2025, the company had set up 18 sales branches in 12 countries, along with an extensive distribution network that encompasses over 2,800 wholesalers, distributors, hypermarkets, and other retailers.
Local production, global supply chain. The company is one of the earliest hygiene product brands to enter the African market and operates 8 factories across Africa, achieving localized production and becoming the hygiene product manufacturer with the largest number of locally established facilities on the continent. Localized production has significantly shortened the sales channel, enabling products to reach consumers more quickly. The company adopts a globally centralized procurement model and has signed agreements with major shipping companies, ensuring stable supply and consistent quality of raw materials while reducing costs and enhancing management efficiency.
We believe that the primary drivers of future, comfortable growth will be: 1) Exogenous growth factors: structural demographic dividends in emerging markets, the ongoing upgrade in consumer spending, and increasing penetration of hygiene products; 2) Endogenous growth factors: localized production creating competitive moats, extensive coverage of sales channels, continuous category expansion, and the replication of mature market expertise to other emerging markets, thereby generating additional growth.
We initiate coverage with a “Buy” rating and a target price of HK$38. We expect the company’s revenue to reach US$541 million/US$627 million/US$711 million in 2025/2026/2027, representing year‑on‑year growth rates of 19.1%/15.9%/13.4%; net profit is projected at US$106 million/US$129 million/US$147 million, with year‑on‑year growth rates of 11.5%/21.4%/14.3%. Based on peer valuations and considering market growth rates, we assign the company a 2026 PE of 23x, corresponding to a share price of HK$38, and give it a Buy rating.
Risk Warning: Intensified industry competition; capacity expansion may not proceed as quickly as expected; volatile raw material prices; exchange rate risks; and the risk of unlocking of restricted shares in newly listed stocks.
