Good News on Listing | Frost & Sullivan Assists Le Comfort Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2698.HK)

Le Comfort Co., Ltd. (hereinafter referred to as 'Le Comfort') was successfully listed on November 10, 2025. A total of 90,884,000 shares were issued globally (subject to the exercise of over-allotment rights), of which 90% were international and 10% were Hong Kong shares; the maximum offering price per share was HK$26.20, raising a total amount of approximately HK$2.38 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of September 30, 2025), from January to September 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 47 (market share of 72%), 62 (market share of 69%), and 162 (market share of 70%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication experience with regulatory authorities, exchanges, investment and financing institutions, and various related institutions.

• The company is an experienced emerging market baby and feminine hygiene product company, and one of the earliest brands to enter the African market and establish local production factories;

   

• The company has rich experience in developing sales channels in emerging markets and has established a vast, mature, and stable sales network;

   

• The company meets consumer needs through differentiated product strategies and builds a strong brand matrix;

   

• The company's localized factories and global supply chain system empower strong manufacturing capabilities, providing cost-effective high-quality products;

   

• The company's professional, systematic, and digital management system provides efficient empowerment for enterprise operation and management, continuously replicating successful stories in new markets.

According to the Frost & Sullivan report, the company:

• Based on sales volume in 2024, it ranks first in both the infant diapers and sanitary napkins markets in Africa, with market shares of 20.3% and 15.6%, respectively;

   

• Based on 2024 revenue, it ranks second in the infant diapers and sanitary napkins markets in Africa, with market shares of 17.2% and 11.9%, respectively.

According to the International Monetary Fund's World Economic Outlook, economies are divided into 'developed markets' and 'emerging markets'. Emerging markets are mainly located in Africa, Latin America, and Central Asia, characterized by strong economic growth and a young and widely dispersed population. The industrial market size of emerging markets is usually small, and most emerging market countries have limited local industrialization, leading to a dependence on imports for essential goods. In addition, emerging markets are actively seeking regional economic integration to promote further development.

Emerging markets are characterized by a young population structure, reflected in their broad base and narrow top-down pyramid-like demographic profile. This demographic feature translates into a large pool of low-cost labor, laying a solid foundation for economic development. The market also offers numerous investment opportunities, including infrastructure development, modernization of manufacturing, and expansion of the service sector. These industries are developing rapidly, providing an important driving force for global economic growth.

In addition, due to the relatively low level of local industrialization, emerging markets often have scarce materials, leading to a reliance on trade imports for essential goods. For example, Africa has a huge demand for a variety of products, ranging from large commodities such as steel and machinery to small items like smartphones and handicrafts, as well as daily necessities such as baby diapers and plastic products.

In addition to these challenges, emerging markets are also actively seeking regional economic integration, strengthening economic cooperation with other countries, and increasing the degree of trade liberalization. Such actions are expected to create more market opportunities and investment space for enterprises, and to create a more favorable environment for enterprise growth and development.

Hygiene products refer to various technologically advanced chemical products used in daily life, which come into direct or indirect contact with the human body and are used for physiological and health care purposes (such as antibacterial or antimicrobial effects). Absorbent hygiene products are designed for direct contact with the human body and are mainly made of highly absorbent materials. They are disposable hygiene products used for collecting human excreta. This category includes baby hygiene products, feminine hygiene products, and other products.

Infant hygiene products refer to products designed specifically for the hygienic needs of infants and newborns, suitable for their sensitive skin. Infant hygiene products include (but are not limited to) diapers and pull-ups for infants. Women's hygiene products refer to products used for menstruation, vaginal discharge, and other bodily functions. Women's hygiene products include sanitary pads, tampons, panty liners, and other cleaning products. Wet wipes refer to small disposable wipes treated with a cleanser, especially used for personal hygiene, also known as wet towels, wet paper towels, or disposable wet wipes.

The market size of baby diapers, pull-ups, and sanitary napkins in emerging markets has been steadily growing. In Africa, the market size increased from $2.9 billion in 2020 to $3.8 billion in 2024, with a compound annual growth rate of 6.8%. It is expected that this upward trend will continue, with the market size reaching $5.6 billion in 2029, a compound annual growth rate of 7.9%. In Latin America, the market size of these products increased from $6.9 billion in 2020 to $7.7 billion in 2024, with a compound annual growth rate of 2.7%. It is expected that this growth will continue, with the market size expanding to $9 billion by 2029, a compound annual growth rate of 3.0%. In Central Asia, the market size increased from $400 million in 2020 to $500 million in 2024, with a compound annual growth rate of 4.5%. It is expected that this growth will continue, with the market size growing to $600 million by 2029, a compound annual growth rate of 4.8%. The growth rates of these markets are predicted based on multiple factors such as the development of sales networks and supply chains, increased product awareness, consumption upgrading, population growth, and urbanization.

From 2020 to 2024, the market size for baby diapers, baby pants, and sanitary napkins in other major regions grew steadily. The North American market increased from $5 billion to $5.2 billion, with a compound annual growth rate of 1.2%. The European market grew from $9.2 billion to $9.4 billion, with a compound annual growth rate of 0.7%. The Chinese market increased from $13.2 billion to $14.3 billion, with a compound annual growth rate of 2.0%. The Japanese market increased from $1.4 billion to $1.5 billion, with a compound annual growth rate of 0.5%. It is predicted that the growth rates of these markets will be relatively low due to their high market penetration rates and near saturation.

The market size of baby diapers in Africa increased from $20.367 billion in 2020 to $25.895 billion in 2024, with a compound annual growth rate of about 6.2%. It is expected to grow to $36.317 billion in 2029, with a compound annual growth rate of about 7.0%. Africa can be further divided into multiple regions, including North Africa, West Africa, Central Africa, East Africa, and South Africa. From 2020 to 2024, the growth rates in the markets of North Africa, Central Africa, and East Africa increased due to the growing population base and diaper penetration rates in these regions. The market size of baby diapers in East Africa increased from $2.629 billion in 2020 to $3.567 billion in 2024, with a compound annual growth rate of 7.9%. It is expected to reach $5.528 billion in 2029, with a compound annual growth rate of 9.0%. The market size of baby diapers in Central Africa increased from $1.156 billion in 2020 to $1.612 billion in 2024, with a compound annual growth rate of 8.7%. It is expected to reach $2.388 billion in 2029, with a compound annual growth rate of 7.9%.

The market size of baby diapers in Latin America reached $4.4 billion in 2020 and is expected to grow to $4.8 billion by 2024, with a compound annual growth rate of 2.3%. It is projected that by 2029, the market size will expand to $5.5 billion, with a compound annual growth rate of 2.6%.

The market size of sanitary napkins in Africa increased from $6.114 billion in 2020 to $8.542 billion in 2024, with a compound annual growth rate of 8.7%. It is expected that by 2029, it will grow to $14.126 billion, with a compound annual growth rate of 10.7%. In West Africa, the market size of sanitary napkins increased significantly from $1.328 billion in 2020 to $1.928 billion in 2024, with a compound annual growth rate of 9.8%. The market is expected to reach $3.547 billion by 2029, with a compound annual growth rate of 13.2%. In Central Africa, the sanitary napkin market grew from $3.02 billion in 2020 to $4.26 billion in 2024, with a compound annual growth rate of 9.0%. It is expected that by 2029, it will reach $7.75 billion, with a compound annual growth rate of 13.2%.

The sanitary napkin market size in Latin America reached $12 billion in 2020, growing at a compound annual rate of 2.7% to reach $14 billion by 2024. It is expected that by 2029, it will expand to $16 billion with a compound annual growth rate of 3.7%.

The infant pull-on pant market in Africa has experienced significant growth, increasing from $2.949 billion in 2020 to $3.891 billion in 2024, with a compound annual growth rate of 7.2%. It is expected that by 2029, it will reach $5.628 billion, maintaining a compound annual growth rate of 7.6%. The East African market has seen a substantial increase, growing from $5.70 million in 2020 to $8.33 million in 2024, with a compound annual growth rate of 9.9%. It is expected that by 2029, it will expand to $1.306 billion, maintaining a compound annual growth rate of 9.1%. The Central African market has also shown strong growth, increasing from $1.45 million in 2020 to $2.07 million in 2024, with a compound annual growth rate of 9.4%. It is expected that by 2029, it will reach $3.20 million, with the compound annual growth rate increasing to 8.7%.

The market size of baby pull-ups in Latin America reached $1.3 billion in 2020, growing to $1.5 billion by 2024 at a compound annual growth rate of 4.0%. It is expected that by 2029, it will expand to $1.8 billion with a compound annual growth rate of 3.6%.

Based on sales in 2024, the company ranks first in the African infant diaper industry. During the period from 2023 to 2024, the company's growth rate was the highest among the top five infant diaper industry participants in Africa.

Based on 2024 revenue, the company is one of the top five participants in the African infant diaper industry. It is estimated that the top five industry participants in the market accounted for 61.0% of total revenue in 2024. During the period from 2023 to 2024, the company's growth rate was the highest among the top five African infant diaper industry participants.

Based on sales volume for 2024, the company ranks first in the African sanitary napkin industry. From 2023 to 2024, the company's growth rate was the highest among the top five sanitary napkin industry participants in Africa.

Based on 2024 revenue, the company is one of the top five participants in the African sanitary napkin industry. In 2024, the top five industry participants are estimated to account for 41.3% of the total market revenue. During the period from 2023 to 2024, the company's growth rate was the highest among the top five sanitary napkin industry participants in Africa.

● Development of sales network and supply chain

The consumption threshold for baby diapers and sanitary pads and other hygiene products is relatively low. Due to highly developed industrialization, the direct production costs of hygiene products are continuously optimized. Therefore, in remote and rural areas, the main limiting factor for improving the efficiency of hygiene product sales is the high cost of supply chains and logistics, resulting in limited accessibility. In the cost structure of hygiene products in remote and rural areas of emerging markets, supply chains and logistics expenses account for at least 30% of the product cost, much higher than the 15% to 20% ratio in mature urban markets. In the future, with the development of global supply chains and logistics networks for baby diaper and sanitary pad brands (such as the establishment of new online and offline retail sales systems and more diversified consumption patterns), we will be able to improve the efficiency of sales to remote and rural areas in emerging markets, increase product accessibility, expand potential markets, and ensure timely delivery of products. Improving the sales network can also reduce costs and increase product supply during peak demand periods.

● >Product awareness has increased

With the continuous improvement of population quality in emerging markets, the increasing effectiveness of information dissemination, and the widespread expansion of brand marketing, consumers in these markets are gradually gaining a better understanding of baby diapers and sanitary pads. This increased awareness is reflected in several aspects. Firstly, more and more consumers are learning about the types, performance, and uses of baby diapers and sanitary pads through educational and information channels. Secondly, major brands use various marketing strategies such as television advertisements, in-store promotions, and celebrity endorsements to deepen consumers' understanding and trust of their products. Finally, as consumers pay more attention to product quality and safety, they tend to choose high-quality baby diapers and sanitary pads. All these factors together have increased consumers' demand for baby diapers and sanitary pads, creating a larger market.

● >Consumption Upgrade

In Africa, Latin America, and Central Asia, per capita consumption expenditure grew by 5.4%, 3.7%, and 8.1% respectively from 2020 to 2024, with similar growth rates expected from 2025 to 2029. With the economic development of emerging markets and the increase in per capita consumption expenditure, consumers are paying more attention to improving the quality of their lives. This shift is particularly evident in the hygiene sector, especially in the areas of baby diapers and sanitary napkins, where consumers clearly prefer high-quality products. These products are popular for their excellent comfort, enhanced absorbency, and use of mild, skin-friendly materials. Consumers' willingness to purchase products with such advantages continues to grow, driving demand for higher-quality personal care products. In addition to quality, consumers also pay attention to environmentally friendly solutions, reflecting the global trend towards sustainable development. Consumers are increasingly prioritizing the selection of biodegradable materials and recyclable packaging for hygiene products.

● >Population growth and urbanization

Emerging market countries typically exhibit a triangular demographic structure, characterized by a high proportion of young people and a high birth rate. In Africa, about 14% of the population is under four years old, and over 60% is under 30 years old, with the birth rate remaining at around 3.2% from 2020 to 2024. As the number of infants continues to increase, stable supply of infant products is needed, which has increased demand for baby diapers. With the continuous population growth in these countries, the number of young children has correspondingly increased, allowing the growth trend of the diaper market to continue. These phenomena reflect broader socio-economic trends, where the young population drives consumption patterns and creates a continuous demand for necessary childcare products, ensuring the sustained and robust growth of the baby diaper market. At the same time, urbanization accelerates, meaning that more women are migrating into cities. The urbanization rates in emerging markets such as Africa and Latin America were 45.5% and 85.5% in 2024, respectively, and are expected to continue accelerating after 2025. As lifestyles and consumption habits are changing and improving, women are more likely to obtain and purchase sanitary products. With the continuous improvement of health awareness and purchasing power, demand for sanitary products in the market is also increasing. In addition, the urban environment provides more convenient education and healthcare services, enabling people to make wiser decisions about menstrual hygiene. Retail stores and e-commerce platforms are concentrated in urban areas, ensuring that women have more product options to cater to different needs and preferences. Moreover, urbanization can improve waste management methods, thereby solving problems related to the disposal of sanitary products.

● >Consumers' brand awareness has improved

As income levels rise, consumers are increasingly pursuing well-known brands. These well-known brands offer higher quality, safer, and more environmentally friendly products, which are therefore highly regarded and favored by more discerning consumers. The shift in consumer preferences reflects an increase in their demand for products. Products not only need to meet functional needs but also comply with values such as safety, quality, and sustainable development. Therefore, prioritizing well-known brands in these areas is more likely to lead to the acquisition and retention of consumer loyalty in a highly competitive market.

● Consumers' demand for product quality is constantly increasing

With the improvement of living standards, consumers are increasingly concerned about the quality of sanitary napkins and diapers, and their requirements for health, safety, and performance are gradually increasing. Consumers are paying more attention to whether these products are made from skin-friendly materials, whether they have excellent absorbency and leak-proof properties. In addition, consumers also care about whether the products are breathable, comfortable, and environmentally friendly. The increasing demands are driving manufacturers to continuously improve their products by adopting more advanced technologies and materials to meet consumer expectations and ensure user health and comfort.

● >Product innovation and differentiation levels have been enhanced

To attract consumers, brands will continue to launch innovative products and improve product functions, such as more breathable, comfortable, and environmentally friendly baby diapers and sanitary napkins, as well as products with additional functions such as antibacterial and hypoallergenic properties. With intensified market competition, hygiene product companies will differentiate their products through innovative design, customized services, and pricing strategies to meet the needs of different consumer groups.

● The stability of the supply chain is becoming increasingly important

To ensure the compliance of infant diapers and sanitary napkins production and consistent quality, the stability of the supply chain is becoming increasingly important. A robust and reliable supply chain is crucial for maintaining stable product supply and high-quality standards, which are key to meeting consumer expectations. Therefore, companies are expanding their investment in supply chain management, optimizing logistics, and establishing solid partnerships with suppliers. Such actions can enhance the company's resilience and efficiency in the market, ensuring its ability to continuously provide suitable products that meet the demanding standards of discerning consumers.

● >The global demand for environmentally friendly and hygienic products is constantly rising

In recent years, there has been a global trend towards sustainable development, and the number of consumers actively seeking environmentally friendly and hygienic products has also been increasing. With the heightened awareness of environmental protection, consumers are paying more attention to the ecological impact of disposable hygiene products and tend to choose products made from biodegradable materials, sustainable procurement of raw materials, and recyclable packaging. The driving factors for this trend include public concern about plastic pollution, stricter environmental regulations, and consumer preference for brands that promote corporate social responsibility. Therefore, hygiene product companies are accelerating innovation and developing sustainable development alternatives to meet the growing global demand for more environmentally friendly and responsible hygiene solutions.