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>Procter & Gamble's latest financial results present a mixed picture in a complex operating environment, underscoring both promising strategies and challenging headwinds impacting their performance.</li><li>The company's organic sales saw a modest increase of 2% for the fiscal year, driven equally by volume growth and price/mix enhancements.</li><li>Nine out of ten product categories registered growth, with the exception of Baby Care, which experienced a slight decline.</li></ul>

Procter & Gamble's latest financial results present a mixed picture in a complex operating environment, underscoring both promising strategies and challenging headwinds impacting their performance.The company's organic sales saw a modest increase of 2% for the fiscal year, driven equally by volume growth and price/mix enhancements.Nine out of ten product categories registered growth, with the exception of Baby Care, which experienced a slight decline.

Procter & Gamble: Inside the Innovation Engine Driving Pampers & SK-II!

<ul><li>Procter & Gamble, the global powerhouse behind brands like Tide, Pampers, and Gillette, has announced one of its most significant organizational shake-ups in recent years.</li><li>The company plans to cut 7,000 nonmanufacturing jobs globally—roughly 15% of its non-factory workforce—over the next two years.</li><li>This move is part of a broader noncore restructuring program estimated to cost between $1 billion and $1.6 billion before tax, with about 25% of that in noncash charges.</li></ul>

Procter & Gamble, the global powerhouse behind brands like Tide, Pampers, and Gillette, has announced one of its most significant organizational shake-ups in recent years.The company plans to cut 7,000 nonmanufacturing jobs globally—roughly 15% of its non-factory workforce—over the next two years.This move is part of a broader noncore restructuring program estimated to cost between $1 billion and $1.6 billion before tax, with about 25% of that in noncash charges.

<ul><li>Procter & Gamble's recent earnings results present a mixed picture of achievements and challenges.</li><li>The company's organic sales for the third quarter grew by 1%, which indicates modest growth.</li><li>This increase was broadly underpinned by pricing strategies that added one percentage point to organic sales growth, while product volume and mix remained consistent with the prior year.</li></ul>

Procter & Gamble's recent earnings results present a mixed picture of achievements and challenges.The company's organic sales for the third quarter grew by 1%, which indicates modest growth.This increase was broadly underpinned by pricing strategies that added one percentage point to organic sales growth, while product volume and mix remained consistent with the prior year.

Procter & Gamble (P&G) Looking To Turbocharge Retail Reach Through Channel Diversification But Will It Work?

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.

United States

The Procter & Gamble Company manufactures and markets consumer products in countries throughout the world. The Company provides products in the laundry and cleaning, paper, beauty care, food and beverage, and health care segments. Procter & Gamble products are sold primarily through mass merchandisers, grocery stores, membership club stores, drug stores, and neighborhood stores.

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

Procter & Gamble Co (PG 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

Procter & Gamble: Inside the Innovation Engine Driving Pampers & SK-II!

Procter & Gamble's latest financial results present a mixed picture in a complex operating environment, underscoring both promising strategies...

Baptista Research

Procter & Gamble (P&G)'s 7

Procter & Gamble, the global powerhouse behind brands like Tide, Pampers, and Gillette, has announced one of its most significant...

Baptista Research

Procter & Gamble (P&G) Looking To Turbocharge Retail Reach Through Channel Diversification But Will It Work?

Procter & Gamble's recent earnings results present a mixed picture of achievements and challenges. The company's organic sales for the third...

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

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

Procter & Gamble: Inside the Innovation Engine Driving Pampers & SK-II!

Procter & Gamble's latest financial results present a mixed picture in a complex operating environment, underscoring both promising strategies...

Baptista Research

Procter & Gamble (P&G)'s 7

Procter & Gamble, the global powerhouse behind brands like Tide, Pampers, and Gillette, has announced one of its most significant...

Baptista Research

Procter & Gamble (P&G) Looking To Turbocharge Retail Reach Through Channel Diversification But Will It Work?

Procter & Gamble's recent earnings results present a mixed picture of achievements and challenges. The company's organic sales for the third...

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

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...