What do u all think of the revenue growth of thebodyshop (TBS) malaysia, TBS Vietnam and TBS Cambodia? How about Natura in long term?
Personally, I am a little concerned when the revenue growth for 2019 vs 2018 is only 2.6% increase. TBS Malaysia recorded negative revenue growth but TBS Vietnam helped to increase it overall. Losing market share in Msia is quite concerning for me. Vietnam is probably a less mature market hence there still potential but in long term - stronger competitor will affect it, just like in Msia. Anyway, I prefer to study these two years due to the lack of covid effect muddling it.
Although Bodyshop has the biggest market share in the "mono branding" sector but it's not really to any advantage IMO. Did you know that Leineige, Innisfree, Etude house and many other are all owned by the same company - Ammore Pacific? Is a more resilient business I think. You can target different age groups and purchasing power groups.
natura seems to me has a lot of correlation to TBS, e.g. 100% Vegan and sustainable. Anyway, I see the korean wind blowing very strongly these days. All in all, this is a very competitive business.
The bright side of this stock is at 50sens - this stock is slightly undervalued in terms of fundamentals but qualitatively, I am worried for the branding prospect of TBS and Natura in attracting younger crowds which seemingly is more into Korean products especially. Their market share is 1.2% lower than TBS. Their facebook likes individually are lower but higher when combined. We are talking about a fairly new competitor unlike TBS which has been in MY for 20+ years.
Once vietnam market shop fully open to the number they mention in thier Prospectus ..the revenue and profit will be around 100% jump. we can expect all this to fully materialize by 2023 - 2025. And their addition of NATURA on top of BODY SHOP brand, will further increase their revenue and profit. Cambodia will be new VIETNAM and MALAYSIA , and INNATURE are making ready CAMBODIA market once VIETNAM market expansion complete..now sitll very cheap price at P/E of 18..
the only negetive they cant go to CHINA, because as of now CHINA reluctant to approve any product are not tested on animal, which body shop philosophy are environment friendly and they do not support testing on animal. However CHINA may change one day since they are getting closer to modern world and adapting themself to be ESG player.
Sabar dulu..look like the PUMPER try to gain volume traction ..but tidak cukup kuat so they quickly drop and run to other counter. Meanwhile waiting for who think want to collect more still sempat since PE at 13 only..
@Mabel - in summary, they are saying their business is COVID resilient since they have an omnichannel marketing system (online website, thru WhatsApp, Facebook, and CALL AND COLLECT OR DELIVER), and their market in VIETNAM and CAMBODIA is growing faster. ANd their recent ADD ON - NATURA BRAND increasing their revenue base.
@kzyn116 now the price at PE 18. If recalculate base on PE 35 it already at RM 1. But take note break out may happen once PE touch PE 30. Then u may want to harvest fully at PE 50 or PE 60. If u got a bigger guts wait for PE 90 than harvest. To touch PE 90 , FBMKLCI need to move at least 1700 ..then market will be more laju..and just buy and FEAR OR MISSING OUT will act..
@wiseeye...lost making natura , i think u refering to their manufacture and brand owner the NATURA & CO from brazil. But body shop malaysia are the franchisee cannot be loss making. SImilar to NESTLE product. Nestle may run under lost,,,but not the KEDAI RUNCIT, otherwise no kedai runict will support nestle. So for INNATURE Malaysia they dont have any big COST TO COVER, since they dont manufacture thing. THey are AMAZON or MR DIY kind of thing, Orang tengah. We learn from school , orang tengah take all the profit from fisherman. same concept. FACEBOOK , AMAZON, LAZADA, ALIBABA..semua pun orang tengah...INNATURE MALAYSIA also same orang tengah..
So the more SHOP or more OMNICHANNEL they open the more money flowing in..
Wow abdul, your reply surprises me. I thought u had deep understanding of the business model, but seems like u don’t. How is it possible a franchise cannot be loss making? Did u even read the quarterly report? No big cost to cover, u sure? Rentals, salaries, marketing and promotion costs, depreciation, etc...?
Not trying to bad mouth the stock but your perspective on this is inaccurate and deeply misleading. And ur PE analysis is plucked from the sky, not a good way to convince investors to invest
@Wiseeye, sorry . I referred back to the quarterly report (quite some time already). Yes, u r right for the natura segment. But still, natura is a new addition to the company and added during MCO time last year. So it will take time to grow.
PE reading from KL investor or KL screener itself or u can back-calculated too from EPS.
no worries, we all have high hopes for Innature and I believe with their strong branding and competent team, and strong growth coming from Vietnam and Cambodia. we should see a stronger company out of the pandemic
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
High5
1,269 posts
Posted by High5 > 2020-11-17 15:41 | Report Abuse
Let it fly dont sell yet