HK Stock Market Move | SOFTCARE (02698) Rises Over 6% Again as Falling Oil Prices Drive Cost-Side Improvement and Market Share Growth Proceeds as Expected

SOFTCARE (02698) continued to rise, up 6.13% as of press time to HK$29.1, with turnover of approximately HK$101 million. On the news front, the conclusion of the U.S. midterm elections combined with rising expectations of de-escalation in the U.S.-Iran conflict drove international oil prices sharply lower, and the pullback in oil prices is expected to drive down costs of oil-based raw materials. Soochow noted that the company is a leading diaper/sanitary napkin player in Africa, with strong barriers in channels/products/production capacity, and is a rare consumer name combining both alpha and beta. It also continues to expand into new markets/new categories. The company's share price has already fairly fully reflected the pricing of cost pressure from the rebound in oil prices. The company's sales volume and market share growth are still proceeding as scheduled, and the long-term logic remains unchanged; the incorporation of new categories next year will inject long-term upside, and it is recommended to pay close attention at the bottom level.