SOFTCARE (SEHK: 02698) shares rose more than 3% in morning trading. At the time of writing, the stock was up 3.54% to HK$32.72, with a turnover of HK$644.09 million.
Recently, the company issued a positive profit forecast for the first half of 2026. Analysis indicates that for 1H26, company revenue increased by no less than 28% year-on-year to US$328 million, net profit grew by no less than 40% to US$73 million, and adjusted net profit attributable to shareholders rose by no less than 47% to US$61 million, exceeding expectations primarily due to contributions from favorable exchange rates and interest income. The analysis suggests that, leveraging its manufacturing and channel advantages, the company is well-positioned to continuously increase its market share. In the long term, expansion into new markets and product categories is expected to further raise its growth potential.
The analysis further noted regarding new market expansion: the company's Peru factory commenced smooth operations in the first half, strengthening its cost advantage. Concurrently, the company is rapidly expanding its distribution channels in Latin America, with the Latin American market anticipated to achieve over 100% growth in the first half. Additionally, exchange rates provided a positive contribution; the local currencies of some markets appreciated against the US dollar year-on-year during the period. Coupled with price increases on some products due to rising raw material costs, the company's average selling price saw an improvement.
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