SOFTCARE Shares Surge Over 6% on Strong 2025 Earnings and Robust Latin American Growth

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SOFTCARE (02698) saw its shares rise more than 6%. At the time of writing, the stock was up 6.66%, trading at HK$31.7 with a turnover of HK$43.89 million. The company recently reported its 2025 financial results, showing revenue of approximately $567 million, a year-on-year increase of 24.9%. Gross profit grew 27.1% to $203.5 million, while net profit reached around $121 million, up 27.4% compared to the previous year. Adjusted net profit came in at approximately $122 million, representing a 24.4% increase. Earnings per share were 23 cents, with a final dividend of 8.88 cents per share.

By region, the company's revenue in East Africa, West Africa, Central Africa, and Latin America grew by 23.9%, 18.4%, 34.5%, and 134.3% year-on-year, respectively, in 2025. Analysts note that escalating geopolitical conflicts in the Middle East have disrupted global supply chains. However, demand for SOFTCARE's products remains relatively inelastic. The company's competitive advantages—localized production, a global supply chain, deep distribution networks, and a value-for-money positioning—are further strengthening its market barriers. It is expected that SOFTCARE will continue to increase its market share in Africa, where there remains room for expansion. The company is also actively expanding into high-growth regions such as Latin America and Central Asia.

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