Understanding the Market | SOFT INTL once fell over 8%, dropping below the issue price four days after listing, as the company focuses on baby and child care products

SOFT INTL once fell more than 8%, reaching a low of HKD 0.48, below the issue price of HKD 0.51. As of the time of writing, it has dropped 6.6%, trading at HKD 0.495, with a transaction volume of HKD 6.9712 million. 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 in Eurasia. According to a Frost & Sullivan report, based on export value in 2023, the company is the second-largest exporter of disposable hygiene products for infants and children from China to Russia, with an estimated market share of about 3.7% in 2023. Notably, in recent years, the Russian market has become the main 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