This is a very thorough write-up, thank you. As a current shareholder I can't add very much to your analysis except to bring up some interesting observations:
1. Management is very much of the "no hype' type, and are conservative in their guidance. I believe the CEO was previously with Blackmores and knows the industry well.
2. The ongoing brand building that is taking place by investing increasing sums in sales and marketing is keeping a speed limit on earnings growth. However this is aimed to keep the top line growing strongly from gaining market share - according to management.
3. The absence of their products in Chemist Warehouse Australia is part of their strategy to align with retail partners who do not discriminately discount products, but rather earn reasonable and stable gross margins in a win win scenario for supplier and retailer.
4. Another ASX listed vitamins company EZZ Life Sciences (ASX: EZZ) is also having success accessing the Chinese consumer. However EZZ tend to rely moreso on social media platforms such as Douyin to promote their products. They spend vast sums on marketing - which I presume to be due to the use of influencers on the various platforms.
5. Recent share sales from the Chairman and the CEO are a concern.
This is a very thorough write-up, thank you. As a current shareholder I can't add very much to your analysis except to bring up some interesting observations:
1. Management is very much of the "no hype' type, and are conservative in their guidance. I believe the CEO was previously with Blackmores and knows the industry well.
2. The ongoing brand building that is taking place by investing increasing sums in sales and marketing is keeping a speed limit on earnings growth. However this is aimed to keep the top line growing strongly from gaining market share - according to management.
3. The absence of their products in Chemist Warehouse Australia is part of their strategy to align with retail partners who do not discriminately discount products, but rather earn reasonable and stable gross margins in a win win scenario for supplier and retailer.
4. Another ASX listed vitamins company EZZ Life Sciences (ASX: EZZ) is also having success accessing the Chinese consumer. However EZZ tend to rely moreso on social media platforms such as Douyin to promote their products. They spend vast sums on marketing - which I presume to be due to the use of influencers on the various platforms.
5. Recent share sales from the Chairman and the CEO are a concern.
Once again thank you!