Ok I have an explanation why Innature Berhad still has yet to experience rapid growth. I just collected enough shares for my fund so now I can comment without stress.
The skincare beauty business can be high risk low margin business. Similar to healthcare/pharmaceutical/supplement business. One is competition. Skincare products are extremely easy to replicate chemically and thus the company may face the potential issue of competition from cheap knockoff brands available on e-commerce platforms. Take one product for example. Type Facial cleanser in Google search and see how many results you got. It is not complicated to make skincare products. All you need is retinol, salicylic acid, ceramides, vitamin C, glycerin and voila, you have your own brand.
However, the same logic might not apply to Innature Berhad provided that they own The Body Shop which is a retail favourite among locals due to its fairly low cost and decent quality.
In terms of financials, this company is very solid and fulfils all conventional metrics. Low PER and pretty decent margins. However, revenue growth YoY is on the decline (-14%) and decrease in EPS (basic and diluted - 0.03) and P/B 3.4x meaning this company is not exactly undervalued. Despite that, the strong P/FCF ratio (12.9x) and return on equity solid div % indicates that the company is in a healthy financial state.
Coupled this with strong prospects of beauty/self-care industry in the local market, Innature is going places. Now it is time to wait. There are risks to watch out for still. Which are not confined to potential drop in profit margins and future competitions from knockoff brands especially manufactured in Mainland China and beauty products from Korea/Japan. This should not constitute as an impediment to the business as The Body Shop and Natura is still highly diversified and provide solutions for "comfortable and healthy lifestyle" with their fragrance products (Eau De Perfume, Body Mist)
All these SH really kampung mentality. The mind is only focus on this useless bolehland. MCO la, FMCO la, CMCO la, FFO la. I ask you a simple question, how big is this Bolehland population?
Innature business span to Vietnam, Cambodia and not only Malaysia. Malaysia around 100 plus shop..the same target on Vietnam...so revenue profit will be double..
PE still low and cheap..better come in before too late..
all retailers now have OMNICHANNEL marketing...including MR.DIY, INNATURE BERHAD, KIM HIN JOON..so covid will not give big impact to them..as their product is a necessity and can order from anywhere u want, any channel u want..business as usual and growing..
@Aaron_tan to be honest, there is no rocket science so don't assume yourself as a genius. The stock is experiencing correction after The Edge posted a 'bullish' stance on Innature with their untimely article singing praises for the company out of nowhere. Naturally veteran traders and medium term investors will take this opportunity to exit their position which is unfortunate honestly. Your predictions carry no substance. Buy the dip
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MQ Trader 2909 views | 2 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Aaron_tan
2,337 posts
Posted by Aaron_tan > 2021-06-04 20:54 |
Post removed.Why?