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EUR 88.49
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BMG is a consumer household care company in China, which sells its products in three main categories: fabric care, personal hygiene and home care. As per Frost & Sullivan, it has been the market leader in liquid laundry detergent, liquid soap and concentrated liquid laundry detergent market over 2017-19.
While sales have grown at 11.88% CAGR over FY17-19, gross profit has grown at 22.89% CAGR while PAT has grown even faster at 253% CAGR, essentially growing by 12.5x. At the same time, the company has also shown an ability to launch new brands and products.
Online sales have been the fastest growing distribution channel for the firm. However, the online sales channel appears to be the only one that has grown steadily and that too mostly due to the company widening its distribution online. Its offline sales have been flagging. At the same time its operating cash flows haven’t kept pace with earnings. In addition, a part of its margin expansion has been due to reduction in employee strength and ad expenses.
Blue Moon Group Pre-IPO
Blue Moon Group plans to raise around US$1bn in its Hong Kong listing. The company is backed by Hillhouse who first invested in the company in 2010.BMG is a consumer household care company in China, which sells its products in three main categories: fabric care, personal hygiene and home care. As per Frost & Sullivan, it has been the market leader in liquid laundry detergent, liquid soap and concentrated liquid laundry detergent market over 2017-19.
While sales have grown at 11.88% CAGR over FY17-19, gross profit has grown at 22.89% CAGR while PAT has grown even faster at 253% CAGR, essentially growing by 12.5x. At the same time, the company has also shown an ability to launch new brands and products.
Online sales have been the fastest growing distribution channel for the firm. However, the online sales channel appears to be the only one that has grown steadily and that too mostly due to the company widening its distribution online. Its offline sales have been flagging. At the same time its operating cash flows haven’t kept pace with earnings. In addition, a part of its margin expansion has been due to reduction in employee strength and ad expenses.
Underlying
Blue Moon Group Holdings
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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