HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Soft International Group / Equity Capital Markets

<ul>
<li>The competition intensity of the industry in which Soft International's main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.</li>
<li>Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level</li>
<li>Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.</li>
</ul>


The competition intensity of the industry in which Soft International's main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.
Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level
Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.


Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>The top two biggest markets of Soft International (China and Russia) are encountering the challenge of slowing growth or even growth stagnation due to decreasing birth rate and increasing competition.</li>
<li>Single-Digit net profit margin is not satisfactory for a company with strong consumption attributes. This makes us wonder if the personal hygienic disposables is not a money-making business. </li>
<li>Overreliance on Russian Top-tier Retailer would bring risks to the business.Both revenue growth and profitability could decrease sharply if adverse situations occur. Soft International’s valuation could be lower than peers.</li>
</ul>


The top two biggest markets of Soft International (China and Russia) are encountering the challenge of slowing growth or even growth stagnation due to decreasing birth rate and increasing competition.
Single-Digit net profit margin is not satisfactory for a company with strong consumption attributes. This makes us wonder if the personal hygienic disposables is not a money-making business. 
Overreliance on Russian Top-tier Retailer would bring risks to the business.Both revenue growth and profitability could decrease sharply if adverse situations occur. Soft International’s valuation could be lower than peers.


Pre-IPO Soft International Group - Whether Performance Growth Can Be Sustained Is a Question Mark

China

Developer, manufacturer and distributor of personal single-use hygiene products

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

Soft International Group (SFTG HK)

Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Xinyao (Criss) Wang

Pre-IPO Soft International Group - Whether Performance Growth Can Be Sustained Is a Question Mark

Soft International faces challenges due to slowing growth/competition. Low margins raise question about the profitability of business, while...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

​Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Xinyao (Criss) Wang

Pre-IPO Soft International Group - Whether Performance Growth Can Be Sustained Is a Question Mark

​Soft International faces challenges due to slowing growth/competition. Low margins raise question about the profitability of business, while...

Xinyao (Criss) Wang

Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Soft International faces challenges due to slowing growth/competition. Low margins raise question about the profitability of business, while...