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SOFTCARE(2698)
Analysis¡G
Softcare has been selling hygiene products in the West Africa region since 2009 (its product range covers infant care items such as baby diapers, female care items such as sanitary napkins, and family care items such as wet wipes). It has since continuously expanded its business to multiple African countries. Its sales footprint now covers more than 30 African countries across West Africa, East Africa, and Central Africa. Leveraging its operational experience and success in Africa, the Group expanded its business to Peru in Latin America in 2020. In 2024, it further expanded successively to Kazakhstan in Central Asia and El Salvador in Latin America. Benefiting from lower market penetration rates and substantial demographic dividends, the African hygiene products market continued to record growth outperforming the global average in 2025. The Latin America region maintained a low-growth trend, but domestic consumption remained the primary economic engine. The market in the region combines African-style channel characteristics with the consumption structure of mature markets. This is favorable for the Group to replicate its successful channel experience while launching high cost-performance product portfolios adapted to local consumption patterns, enabling rapid market entry and penetration.
In infant care, the Group offers baby diapers and baby pull-up pants in various sizes, designs, and functions, specifically designed for newborns to five-year-old children. It actively promotes a ¡§one country, one policy¡¨ approach, developing customised targeted products centred on market needs. In 2025, the number of SKUs for infant care products sold by the Group reached 437. In female care, the Group offers sanitary napkins in multiple designs and specifications. In 2025, the total number of SKUs for female care products on sale stood at 57. In family care, the Group provides mild-formula wet wipes for daily cleaning and disinfection that are suitable for use on infant skin. In 2025, this category covered a total of 23 SKUs.
For the year ended 31 December 2025, the Group achieved total revenue of USD 567 million, representing a 24.9% year-on-year increase, primarily driven by synergistic growth in sales volume and average selling price. On the sales volume front, the Group benefited from sustained population growth in emerging markets, rising urbanisation levels, and increasing health awareness, which drove continuous improvement in hygiene product penetration rates. At the same time, the Group strategically established factories in multiple African countries to export products to neighboring markets and actively expanded into the Latin America market, further boosting volume growth.
On the average selling price front, ASP across categories rose 4%¡V7%, mainly due to the strengthening of local currencies against the US dollar in most operating regions in the second half of 2025, combined with the Group¡¦s multi-dimensional, adaptive pricing strategy formulated according to its diversified product matrix, varying consumption capabilities across countries, and competitive landscapes. Net profit reached USD 121 million, up 27.4%. Gross margin improved from 35.2% in 2024 to 35.9% in 2025, primarily due to the combined effects of deeper penetration in emerging markets, upgrades and iterations of existing products, and product mix optimization. Looking ahead, the Group will continue to strengthen its core operating model of ¡§localised production + global supply chain + deep distribution¡¨. It will keep optimizing production capacity layouts in key regions such as Africa, Latin America, and Central Asia, advance upgrades to intelligent production lines and quality control systems, and further consolidate its leading position in the hygiene products sector in emerging markets. (I do not hold the above stock.)
Strategy¡G
Buy-in Price: $29.00, Target Price: $31.50, Cut Loss Price: $27.50
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HOPEWIND ELEC(603063.CH)
Analysis¡G
Hopewind Electric has been deeply engaged in the fields of new energy and electrical drives, with its core business covering products such as wind power converters, photovoltaic inverters, energy storage converters, hydrogen power supplies, and electrical drives, forming a triple growth curve of "wind power as the foundation + energy storage as the breakthrough + HVDC computing as the new engine." In the wind power converter sector, the company holds a domestic market share of 20%-30%, with a market share exceeding 30% in offshore high-power (≥12MW) converters, demonstrating high technical barriers and serving as a core link in the wind power equipment industry chain. From Q1 to Q3 2025, the company achieved revenue of 2.778 billion yuan (yoy +20.19%) and net profit attributable to the parent company of 334 million yuan (yoy +31.99%). Driven by the AI-driven demand surge in global industries, data centers are experiencing rapid growth. The company is expected to leverage its first-mover advantage as a high-power power electronics platform enterprise to further expand its AI data center power supply and distribution business.
Strategy¡G
Buy-in Price: ¢D31.30, Target Price: ¢D35.50, Cut Loss Price: ¢D29.00
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Great Wall Motor (2333 HK) New Energy Vehicles and Overseas Markets Drive Sales Growth
Investment SummaryRevenue Growth Amid Transformation While Profits Face PressureAccording to the 2025 annual result forecast of Great Wall Motor, the Company reported total revenue of RMB222.79 billion in the full year (RMB, the same hereafter), up 10.2% yoy. Net profit attributable to shareholders was RMB9.912 billion, down 21.7% yoy. Non-GAAP net profit attributable to the parent company fell 36.5% yoy to RMB6.158 billion. The decline in profit was mainly due to the Company accelerating the build-out of a new channel model that connects directly with users, while also increasing investment in the launch and promotion of new models and technologies as well as brand enhancement, which reduced the Company's profitability. Looking at the fourth quarter alone, the Company recorded net profit attributable to the parent company of RMB1.28 billion, down 43.5% yoy and down 44.4% qoq, mainly due to one-time year-end bonus accruals and delayed tax refunds on scrapped vehicles. Excluding these factors, the Company's operations remained stable. New Energy Vehicles and Overseas Markets Drive Sales Growth, While Product Mix Optimisation Lifts Per-Vehicle RevenueSales volume of Great Wall Motor reached a record high of 1,324 thousand units in 2025, up 7.3% yoy, driven by the dual engines of new energy vehicles and overseas markets. Among them, sales of new energy vehicles reached 404 thousand units, up 25.4% yoy, with the proportion of NEVs expanding by 4.4 percentage points to 30.5%. Overseas sales reached 506 thousand units, up 11.7% yoy, with the overseas sales ratio expanding by 1.5 percentage points to 38.2%. Among the Company's sub-brands, Haval, WEY, Tank, Ora, and pickup recorded sales volume of 759 thousand, 102 thousand, 233 thousand, 48 thousand, and 182 thousand units respectively, up 7.41%/+86.29%/+0.74%/-23.68%/+2.57% yoy respectively. The high-end brand Tank remained stable, while WEY grew significantly, with WEY Alpine achieving over 10,000 monthly deliveries for three consecutive months. With the continuous optimisation of the product sales structure, the average selling price per vehicle rose steadily. In 2025, the Company's ASP rose up 2.7% yoy, or RMB4,400, to RMB168.3 thousand, reflecting further strengthening of the brand. Platform Opens a New Product CycleIn January 2026, Great Wall Motor launched the world's first native AI full-powertrain platform ¡V GWM One. The platform is compatible with five powertrain types: PHEV, HEV, EV, FCEV, and ICE, covering seven vehicle categories including sedan, SUV, pickup, MPV, and sports car. It is equipped with self-developed 6C cells and a 900V architecture. The first flagship six-seat model based on the GWM One platform, the WEY V9X, is set to debut soon. Deepening Globalisation Strategy to Support Long-Term GrowthThe Company has set a sales volume target of 1.8 million units for 2026, including 600 thousand units from overseas markets, equivalent to an increase of 18.6%. We expect the incremental volume to come mainly from the continued roll-out of overseas localised production capacity and the accelerated expansion of overseas dealer networks (currently deployed in 1,500 locations). The Company has established three complete vehicle production bases in Thailand, Brazil, and Russia, and operates multiple KD factories in Pakistan, Vietnam, Tunisia, and other locations. Investment ThesisThe Company has set resolute strategic objectives and clear steps for new energy and high-end-oriented transformation. The roll-out of a series of new models and the deepening of overseas market deployment in this strong product cycle, along with the scale effect emerging after channel improvements, are expected to support the Company's continued growth momentum. Considering latest financial forecast, we revised our target price to HK$17, equivalent to 13.2/9.5/7.6x P/E and 1.5/1.3/1.1x P/B in 2025/2026/2027. We maintain our Buy rating. (Closing price as at 10 March) GWM¡¦s P/E trend 
Source: Wind, Phillip Securities Hong Kong Research RisksNew vehicle sales fall short of expectations
The SUV market dramatically worsens
The progress of new energy vehicle/Pickup is poorer than expectations Financial Data
(Closing price as at 10 March) Download PDF Report
| Recommendation on 24-3-2026 | | Recommendation | Buy (Maintain) | | Price on Recommendation Date | $ 12.390 | | Suggested purchase price | N/A | | Target Price | $ 17.000 |
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