HK Stock Market Move | SOFTCARE (02698) rose more than 3% in the first half of the year, with the company's performance expected to exceed expectations. Institutions are optimistic about the Latin American market, expecting growth to double.

SOFTCARE (02698) rose more than 3%, as of the time of publication, it rose by 3.23% to HK$32.52, with a turnover of HK$314.855 million. On the news front, recently, SOFTCARE announced a profit forecast for the first half of 2026, with CICC pointing out that in the first half of 2026, the company's revenue is expected to increase by not less than 28% year-on-year to US$328 million, net profit is expected to increase by not less than 40% year-on-year to US$73 million, and non-GAAP net profit attributable to shareholders is expected to increase by not less than 47% year-on-year to US$61 million. The better-than-expected profit is mainly attributed to contributions from exchange rates and interest. The bank believes that with manufacturing and channel barriers, the company is expected to continue to increase its market share, and in the long term, the expansion of new markets and new product categories are likely to raise the growth ceiling continuously. CICC further pointed out that in terms of new market expansion, the company's factory in Peru successfully started production in the first half of the year, strengthening its cost advantage. At the same time, the company's rapid expansion in the Latin American channel is expected to double market growth in the first half of the year. In addition, exchange rates have made a positive contribution to the company, as some local currencies in certain markets appreciated against the US dollar in the first half of the year, coupled with price increases for raw materials, leading to price increases for some products, resulting in an increase in the company's average selling price.