HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Soft International Group / Equity Capital Markets

<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

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Soft International Group (SFTG HK)

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