Post by Fletchsmile on Sept 7, 2015 10:29:17 GMT 7
Not everything is doom and gloom at the moment when it comes to business and China
===============================================================
Surging Chinese Online Demand Powers Aussie Vitamin Sales
September 7, 2015 — 8:47 AM ICT
Booming Chinese demand for foreign-produced vitamins and supplements has helped one Australian company triple its share price in the past year and prompted another to explore a possible sale.
Blackmores Ltd. jumped above A$113 today from A$31.85 a year ago after Goldman Sachs Group Inc. recommended investors buy the Sydney-based stock, which it says will be spurred by online sales in China. Closely held producer Swisse Wellness Group Pty has engaged Goldman Sachs to examine a possible sale that may fetch as much as A$1 billion ($693 million), according to people with knowledge of the matter, who asked not to be identified as the information is private.
Vitamin and dietary supplement sales almost doubled in the past five years in China, jumping 12 percent to 100.1 billion yuan ($15.7 billion) in 2014, according to market researcher Euromonitor International. Blackmores said sales to Chinese and other Asian buyers accounted for A$150 million, or almost a third of annual revenue, in the year ended June 30.
“Rising incomes and increasing consumption of health products in China are key structural drivers behind this growth,” Andrea Chong, an equities analyst at Goldman Sachs in Melbourne, wrote in a Sept. 6 report. She predicts the stock may reach A$143 in the next year, helped by “the rise of cross-border e-commerce in China breaking down traditional trade barriers” and the popularity of “brand Australia.”
Blackmores surged as much as 4.3 percent to A$113.01 in Sydney trading today, and was 0.6 percent higher at A$108.89 as of 11:45 a.m. The stock is poised to be the best performer on S&P/ASX 200 Index over the past year after it joins the benchmark on Friday.
‘Savvy Consumers’
contd
www.bloomberg.com/news/articles/2015-09-07/surging-chinese-online-demand-powers-aussie-vitamin-sales
===============================================================
Surging Chinese Online Demand Powers Aussie Vitamin Sales
September 7, 2015 — 8:47 AM ICT
Booming Chinese demand for foreign-produced vitamins and supplements has helped one Australian company triple its share price in the past year and prompted another to explore a possible sale.
Blackmores Ltd. jumped above A$113 today from A$31.85 a year ago after Goldman Sachs Group Inc. recommended investors buy the Sydney-based stock, which it says will be spurred by online sales in China. Closely held producer Swisse Wellness Group Pty has engaged Goldman Sachs to examine a possible sale that may fetch as much as A$1 billion ($693 million), according to people with knowledge of the matter, who asked not to be identified as the information is private.
Vitamin and dietary supplement sales almost doubled in the past five years in China, jumping 12 percent to 100.1 billion yuan ($15.7 billion) in 2014, according to market researcher Euromonitor International. Blackmores said sales to Chinese and other Asian buyers accounted for A$150 million, or almost a third of annual revenue, in the year ended June 30.
“Rising incomes and increasing consumption of health products in China are key structural drivers behind this growth,” Andrea Chong, an equities analyst at Goldman Sachs in Melbourne, wrote in a Sept. 6 report. She predicts the stock may reach A$143 in the next year, helped by “the rise of cross-border e-commerce in China breaking down traditional trade barriers” and the popularity of “brand Australia.”
Blackmores surged as much as 4.3 percent to A$113.01 in Sydney trading today, and was 0.6 percent higher at A$108.89 as of 11:45 a.m. The stock is poised to be the best performer on S&P/ASX 200 Index over the past year after it joins the benchmark on Friday.
‘Savvy Consumers’
contd
www.bloomberg.com/news/articles/2015-09-07/surging-chinese-online-demand-powers-aussie-vitamin-sales
