HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/softcare-limited" target="_blank" data-smartkarma-citation="entities:44292:1" rel="noopener">Softcare (2698 HK)</a>'s IPO price was fixed at HK$26.20, or 16.4x FY26F PER, with overwhelming positive responses in both the Hong Kong IPO and international offer. </li>
<li>We calculate its fair value at HK$26.07-29.43, based on a 50% premium to <a href="https://www.smartkarma.com/entities/hengan-international-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan International Group (1044 HK)</a> and a 20% discount to the US peers, leaving limited upside.</li>
<li>Its tiny public shareholder ownership (15%) and the potential of being an M&amp;A target will elevate its valuations. However, anything above the US peers (i.e. 20.5x PER) is expensive. </li>
</ul>



Softcare (2698 HK)'s IPO price was fixed at HK$26.20, or 16.4x FY26F PER, with overwhelming positive responses in both the Hong Kong IPO and international offer. 
We calculate its fair value at HK$26.07-29.43, based on a 50% premium to Hengan International Group (1044 HK) and a 20% discount to the US peers, leaving limited upside.
Its tiny public shareholder ownership (15%) and the potential of being an M&amp;A target will elevate its valuations. However, anything above the US peers (i.e. 20.5x PER) is expensive. 


Softcare (2698 HK): Where Should It Be Traded?

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Colgate-Palmolive delivered strong second quarter results for 2025, showcasing growth in net sales, organic sales, and earnings per share despite facing significant challenges from raw material pressures and adverse foreign exchange impacts.</li><li>Organic sales growth accelerated to 2.4%, with improvements noted in North America and Africa/Eurasia.</li><li>They also benefitted from a strategic acquisition in the pet food sector, demonstrating expansion intent in complementary product categories.</li></ul>

Colgate-Palmolive delivered strong second quarter results for 2025, showcasing growth in net sales, organic sales, and earnings per share despite facing significant challenges from raw material pressures and adverse foreign exchange impacts.Organic sales growth accelerated to 2.4%, with improvements noted in North America and Africa/Eurasia.They also benefitted from a strategic acquisition in the pet food sector, demonstrating expansion intent in complementary product categories.

Colgate-Palmolive: Strategic Market Positioning & Pricing to Aid In Securing Stable Revenue Streams!

<ul><li>Colgate-Palmolive's latest earnings reveals a mixed performance for the first quarter of 2025, underscoring both opportunities and challenges that the company faces in its strategic operations.</li><li>The company's management approached the volatile economic environment with a sense of preparedness, though consumer behavior and global economic pressures have presented some difficulties.</li><li>One of the significant challenges highlighted is the impact of a weaker consumer market, particularly evident in volume growth struggles.</li></ul>

Colgate-Palmolive's latest earnings reveals a mixed performance for the first quarter of 2025, underscoring both opportunities and challenges that the company faces in its strategic operations.The company's management approached the volatile economic environment with a sense of preparedness, though consumer behavior and global economic pressures have presented some difficulties.One of the significant challenges highlighted is the impact of a weaker consumer market, particularly evident in volume growth struggles.

Colgate-Palmolive: Leveraging Brand Strength & Innovation in Emerging Markets To Push For Growth!

Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>First, I sold out of Kenvue (KVUE) when the stock surged earlier this week. We locked in a nice 18% total return. </li><li>Kenvue and its consumer healthcare peers Haleon (HLN), Proctor &amp; Gamble (PG) and Colgate-Palmolive (CL), have all been strong given their defensive nature in a volatile market.</li><li>I still believe that Kenvue (KVUE) is a solid company with 15% upside potential, but I have higher conviction in my other recommendations.</li></ul>

First, I sold out of Kenvue (KVUE) when the stock surged earlier this week. We locked in a nice 18% total return. Kenvue and its consumer healthcare peers Haleon (HLN), Proctor &amp; Gamble (PG) and Colgate-Palmolive (CL), have all been strong given their defensive nature in a volatile market.I still believe that Kenvue (KVUE) is a solid company with 15% upside potential, but I have higher conviction in my other recommendations.

<ul><li>Colgate-Palmolive delivered strong financial performance in 2024, with net sales reaching $20 billion, achieving this milestone a year ahead of its strategic plan.</li><li>The company reported high single-digit organic growth, marking its sixth consecutive year of growth either in line with or ahead of its long-term target of 3% to 5%.</li><li>This momentum was driven by balanced pricing and volume growth across all divisions and categories.</li></ul>

Colgate-Palmolive delivered strong financial performance in 2024, with net sales reaching $20 billion, achieving this milestone a year ahead of its strategic plan.The company reported high single-digit organic growth, marking its sixth consecutive year of growth either in line with or ahead of its long-term target of 3% to 5%.This momentum was driven by balanced pricing and volume growth across all divisions and categories.

Colgate-Palmolive: Will Its Promotional Strategies & Market Adaptation Be A Potential Game Changer?

United States

Colgate-Palmolive Company is a consumer products company that markets its products throughout the world.  The Company's products include toothpaste, toothbrushes, shampoos, deodorants, bar and liquid soaps, dishwashing liquid, and laundry products, as well as pet nutrition products for cats and dogs.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Colgate Palmolive Co (CL US)

Softcare (2698 HK): Where Should It Be Traded?

Softcare's IPO price was fixed at HK$26.20, with positive responses. Fair value is HK$26.07-29.43, and limited upside is expected. Small free...

Osbert Tang, CFA

Colgate-Palmolive: Strategic Market Positioning & Pricing to Aid In Securing Stable Revenue Streams!

Colgate-Palmolive delivered strong second quarter results for 2025, showcasing growth in net sales, organic sales, and earnings per share despite...

Baptista Research

Colgate-Palmolive: Leveraging Brand Strength & Innovation in Emerging Markets To Push For Growth!

Colgate-Palmolive's latest earnings reveals a mixed performance for the first quarter of 2025, underscoring both opportunities and challenges that...

Baptista Research

Weekly Update (CON, UNTC, KVUE, TSVT)

First, I sold out of Kenvue (KVUE) when the stock surged earlier this week. We locked in a nice 18% total return. Kenvue and its consumer...

Richard Howe

Colgate-Palmolive: Will Its Promotional Strategies & Market Adaptation Be A Potential Game Changer?

Colgate-Palmolive delivered strong financial performance in 2024, with net sales reaching $20 billion, achieving this milestone a year ahead of...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Softcare (2698 HK): Where Should It Be Traded?

​Softcare's IPO price was fixed at HK$26.20, with positive responses. Fair value is HK$26.07-29.43, and limited upside is expected. Small free...

Osbert Tang, CFA

Colgate-Palmolive: Strategic Market Positioning & Pricing to Aid In Securing Stable Revenue Streams!

Colgate-Palmolive delivered strong second quarter results for 2025, showcasing growth in net sales, organic sales, and earnings per share despite...

Baptista Research

Colgate-Palmolive: Leveraging Brand Strength & Innovation in Emerging Markets To Push For Growth!

Colgate-Palmolive's latest earnings reveals a mixed performance for the first quarter of 2025, underscoring both opportunities and challenges that...

Baptista Research

Weekly Update (CON, UNTC, KVUE, TSVT)

First, I sold out of Kenvue (KVUE) when the stock surged earlier this week. We locked in a nice 18% total return. Kenvue and its consumer...

Richard Howe

Colgate-Palmolive: Will Its Promotional Strategies & Market Adaptation Be A Potential Game Changer?

Colgate-Palmolive delivered strong financial performance in 2024, with net sales reaching $20 billion, achieving this milestone a year ahead of...

Baptista Research

Softcare's IPO price was fixed at HK$26.20, with positive responses. Fair value is HK$26.07-29.43, and limited upside is expected. Small free...