Understanding the Market | SOFT INTL fell nearly 12% on the second day of its listing, focusing on baby and child care products, with revenue relying on the Russian market

SOFT INTL fell nearly 12% on the second day of its listing, after rising over 31% yesterday. As of the time of writing, it has dropped 11.94%, trading at HKD 0.59, with a transaction volume of HKD 8,248.29. It is reported that SOFT INTL mainly engages in the development, production, and sales of personal disposable hygiene products in China, focusing on baby and child care products in emerging markets on the Eurasian continent. According to a report by Frost & Sullivan, based on export value in 2023, the company is the second-largest exporter of disposable baby and child care hygiene products from China to Russia, holding an estimated market share of about 3.7% in 2023. Notably, in recent years, the Russian market has become a major driver of rapid growth for SOFT INTL, with revenue shares in the region being 40%, 50.4%, and 57.7% from 2021 to 2023, respectively. It is reported that a significant portion of SOFT INTL's revenue comes from top retailers in Russia. In 2022, 2023, and the first five months of 2024, these retailers contributed revenue shares of 11.8%, 31.5%, 48.7%, and 35.7%, respectively