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Softcare Ltd (2698) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$15.7B

SL Softcare Ltd 2698 · HK
PriceHK$34.78
Fair ValueHK$17.68
Upside-49.2%
Quality82/100
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Weak Growth
Highly profitable · 21.4% net margin
generates free cash flow
0.36% dividend yield
Mixed vs. peers (7/12)
Wide moat 86/100
Evidence: High Range HK$13.87 – HK$28.23 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$18.31 to HK$17.68 (−3.4%) since Aug 6, 2026. Share price +28.6% over the past month.

A strong business, but screening 49% overvalued on our models.

What matters now

  • A high-quality business (quality 82/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (HK$28.23). The favourable scenario is already priced in.
  • A fairly wide model range (HK$13.87 to HK$28.23) leaves room in how you read the outcome.
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Price vs Fair Value (9 months)

HK$35.46 HK$24.46 Fair Value HK$17.68 Nov 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 13, 2026.

How to read this chart

9‑month range HK$24.46 – HK$35.46 · fair‑value band HK$13.87 – HK$28.23 · the HK$34.78 price screens above the HK$17.68 fair value. As of Aug 13, 2026.

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Analysis

Softcare Ltd (2698) currently trades at HK$34.78, while our model-based Fair Value estimate is HK$17.68, implying the stock looks roughly 49.2% overvalued today. The Quality Score stands at 82/100 (high quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Softcare Ltd generated revenue of HK$567M at a net margin of 21.4%. Revenue declined 4.1% year over year. It earns a return on equity of 31.2%. The balance sheet holds a net cash position of HK$3.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$13.87 (bear case) to HK$28.23 (bull case); at HK$34.78, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 3% below its 52-week high and 46% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -38% fair-value upside, at -49%, 2698 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$8.93 HK$11.81 HK$43.70 76
Growth DCF HK$12.43 HK$15.13 HK$19.75 72
Gordon GGM HK$3.63 HK$3.97 HK$4.49 70
All 24 models by family
DCF Models
FCF DCF HK$12.10 HK$14.88 HK$20.03 38
Owner Earnings HK$12.70 HK$15.72 HK$21.31 31
5Y Revenue Exit HK$11.53 HK$14.49 HK$18.79 39
5Y EBITDA Exit HK$16.10 HK$22.41 HK$30.75 41
5Y P/E Exit HK$19.07 HK$27.54 HK$37.62 38
10Y Revenue Exit HK$11.52 HK$13.75 HK$16.13 36
10Y EBITDA Exit HK$14.48 HK$18.64 HK$23.16 37
10Y P/E Exit HK$16.27 HK$21.82 HK$27.19 35
Earnings-Based
Graham-Dodd HK$9.29 HK$11.36 HK$12.78 54
EPV HK$17.87 HK$20.01 HK$21.89 59
Dividend Discount
Gordon GGM HK$3.63 HK$3.97 HK$4.49 70
DDM Multi-Stage HK$3.63 HK$4.55 HK$5.84 61
Multiples
P/E Multiple HK$21.53 HK$28.70 HK$35.88 63
P/S Multiple HK$7.68 HK$10.24 HK$12.80 58
P/B Multiple HK$17.43 HK$23.23 HK$29.04 55
EV/EBIT HK$25.61 HK$32.47 HK$39.33 53
EV/EBITDA HK$20.91 HK$26.20 HK$31.50 54
EV/Revenue HK$11.74 HK$14.62 HK$17.50 43
Asset-Based
NCAV (Graham) HK$3.59 HK$4.81 HK$7.18 50
Growth DCF
Growth DCF HK$12.43 HK$15.13 HK$19.75 72
Rev-Margin DCF HK$11.53 HK$14.66 HK$18.49 67
Economic Profit
Residual Income HK$8.93 HK$11.81 HK$43.70 76
ROIC Compounder HK$17.87 HK$20.30 HK$22.57 67
Growth Earnings
Growth-Adj P/E HK$15.20 HK$21.71 HK$28.23 68

Widest divergence: Multiples (HK$23.23) versus Dividend Discount (HK$3.97). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$567M
Revenue growth (YoY) -4.1%
Net margin 21.4%
Return on equity 31.2%
Free cash flow HK$452M FY2025
P/E ratio 14.1 as of Jul 2, 2026
More key figures
Operating margin 25.2%
Dividend yield 0.4%
Net cash HK$3.0B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 82/100

Of which business quality 76 · Market factors (momentum, volatility) 64

Profitability 69
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 44
Calm price path (market factor)
Momentum 77
Price trend over the last 3–12 months (market factor)
52W Momentum 67
Distance to the 52-week high (market factor)
Net Issuance 90
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Softcare Limited operates as a hygiene product corporation principally engaged in the development, manufacturing, and sales of baby and feminine hygiene products in Africa, Latin America and Central Asia. The company's products include baby diapers, baby pants, sanitary pads and wet wipes.

Full company description

Softcare Limited operates as a hygiene product corporation principally engaged in the development, manufacturing, and sales of baby and feminine hygiene products in Africa, Latin America and Central Asia. The company's products include baby diapers, baby pants, sanitary pads and wet wipes. It offers a variety of baby and feminine hygiene products under various brands, such as Softcare, Veesper, Maya, Cuettie, and Clincleer. The company sells its products through various sales channels, including wholesalers, distributors, supermarkets, and other retailers. The company was formerly known as Sunda International Limited and changed its name to Softcare Limited in January 2024. Softcare Limited was founded in 2009 and is headquartered in Dubai, United Arab Emirates. Softcare Limited is a subsidiary of Century Industrial Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2019 – FY2025 · reported fiscal years

Softcare Ltd reported revenue of HK$4.0B in FY2025 versus HK$15.2B in FY2019, a compound −20.0%/yr. Reported net income was HK$848M in FY2025, compounding +25.4%/yr from FY2019.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$4.0B
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−37.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−20.8%
Avg. growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.4%
Revenue −20.0%/yr
FY19 HK$15.2B
FY20 HK$12.7B
FY21 HK$16.3B
FY22 HK$16.6B
FY25 HK$4.0B
Net income +25.4%/yr
FY19 HK$218M
FY20 HK$205M
FY21 HK$614M
FY22 −HK$1.6B
FY25 HK$848M
Character of growth · EPS growth decomposed (2014-2025) +3.1 % p.a.
Revenue per share +0.8 pp

of which total revenue −2.7 pp · buybacks/dilution +3.5 pp

EBIT margin −1.9 pp
Tax rate +3.1 pp
Residual (interest, one-offs) +1.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

2698 screens 49% overvalued. Compare with The Procter & Gamble Company →

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Cite: Fair Value Calculator (2026). "Softcare Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2698

Peer Group

Household & Personal Products · 252 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 82 · Top 25%
Fair Value upside −49% · Bottom 25%
Return on equity (TTM) 31% · Top 25%
Return on assets 18% · Top 25%
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 25% · Top 25%
Revenue growth -4% · Below median
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Household & Personal Products median · lower = cheaper

P/E (TTM) 14.1× · Cheaper than median
P/B 0.45× · Cheaper than 75% of peers
P/S (TTM) 3.53× · Pricier than 75% of peers
P/FCF 4.4× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 29
FUTURE 0 · sector 4
PAST 100 · sector 27
HEALTH 0 · sector 98
DIVIDEND 7 · sector 52

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Household & Personal Products stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
The Procter & Gamble Company PG $144.26 $108.16 -25%
Unilever PLC ULN 1,080 MXN 973.58 MXN -10%
Hindustan Unilever Limited HINDUNILVR ₹2,063 ₹789.46 -62%
Essity AB ESSITYA kr 276.50 kr 250.02 -10%
Godrej Consumer Products Limited GODREJCP ₹936.90 ₹367.64 -61%
Marico Limited MARICO ₹855.00 ₹233.05 -73%
APR Co 278470 397,000 KRW 137,521 KRW -65%
Dabur India Limited DABUR ₹411.25 ₹175.59 -57%
PT Unilever Indonesia Tbk UNVR 1,760 IDR 1,928 IDR +10%
Amorepacific Corporation 090430 135,700 KRW 84,785 KRW -38%

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Frequently asked questions

Is Softcare Ltd (2698) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$17.68 versus a price of HK$34.78, about −49% (overvalued).
What is the fair value of 2698?
Our model-based fair value for Softcare Ltd is HK$17.68 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$34.78.
What is the quality score of 2698?
Softcare Ltd has a Quality Score of 82/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Softcare Ltd (2698)?
Softcare Ltd reported trailing-twelve-month revenue of about HK$567M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2698?
The net profit margin of Softcare Ltd is about 21.4%, meaning it keeps roughly 21.4% of revenue as net income. Based on the latest reported figures.
Does Softcare Ltd pay a dividend?
Softcare Ltd currently shows a dividend yield of about 0.36% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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