New Stock IPO:Blue Moon 6993 IPO is a record while overpurchases

Blue Moon will IPO on December 4. IPO:Blue Moon 6993 IPO is a record while overpurchases 51.8 billion 52 times, and international placements have been fully

Blue Moon Product ( asia.nikkei.com )

Blue Moon (new listing code: 06993) shares on the first day of the IPO, and the entrance fee for one lot (500 shares) is 6,646 yuan. According to market sources, within an hour of the opening of Blue Moon, international placements had been fully booked. Some brokers have stated that they have backed up margins of more than 100 billion yuan for Blue Moon. As of 8:28 p.m., some brokers had lent a total of 51.76 billion yuan in margin, 51.6 times the excess demand, among them, Yaocai lent 10.2 billion yuan.

What do I need to know before subscribing to Blue Moon?

Are investors interested in subscribing to Blue Moon? Might want to learn from the following before deciding.

1. Unique mainland laundry detergent tap industry

Blue Moon is the industry's leading manufacturer of household toiletries and companies. Based on initial disclosures in the prospectus, as of the end of 2019, in terms of retail sales, Blue Moon has the largest market share in the laundry detergent market, concentrated detergent and hand sanitizer market, at 24.4%, 27.9% and 17.4%, respectively.

2. High brand awareness

There are also many foreign detergent brands on the shelves of daily necessities in mainland supermarkets, including Unilever and Kao. However, Blue Moon laundry detergent can capture half of the market share of laundry detergent on the mainland, reflecting its popularity on the mainland.

Blue Moon cleaning products have won the hearts of Chinese housewives and become a "national detergent." According to a number of chemical composition analysis and research evaluation, although the price of Blue Moon laundry detergent is relatively expensive, but has a high price and decontamination ability, which attracts many consumers. Frost & Sullivan's report shows that the group ranked first in china's laundry detergent market for 10 consecutive years since 2011.

Blue Moon sprints to go public, high-collar capital contributes to the market, details [Next page]

3. Attract high-collar capital as a shareholder and strengthen cooperation with e-commerce

Hillhouse Capital founder Zhang Lei is proud of his investment in Blue Moon. He has spoken about the discovery of Blue Moon on numerous public occasions and said frankly "I am optimistic about Blue Moon for 10 years." Hillhouse Capital invested in Blue Moon in 2010 and became Blue Moon's largest external shareholder through HCM which holds a 10% stake. The investment has been going on for 10 years.

Blue Moon took a ride on the e-commerce company's morning shift. Hillhouse invested in JD.com (09988) at the time, and then the two parties worked together. Online sales accounted for 47% in 2019, and online revenue was 3.328 billion yuan and Blue Moon ranked among the top 3 sales of several ecommerce platforms.

4. High gross profit margin, high profit

Specifically, Blue Moon's revenue is contributed by three main products, namely clothing cleaning products, personal cleaning care products, and household hygiene care products. Where clothing cleaning care products account for the highest proportion, i.e. maintaining at 87.5%, in other words clothing Cleaning and care products are blue moon core products.

And Blue Moon has a gross profit margin of 64% for a bottle of laundry detergent, which means it has a strong ability to make money. According to initial disclosures in the prospectus, Blue Moon's gross profit margin increased year-on-year from 2017 to 2019, to 53.18%, 57.42%, and 64.16%, respectively, and net profit margin also rose from 1.5% to 15.3%.

5. The product is single, and competitors tend to come from behind

Blue Moon laundry detergent has been a major source of income for many years. Although in recent years it has tried to launch other sub-brands such as "Vino" and "Supreme", it is better known and well known in the market than the main brand "Blue Moon". Not high, relevant brand strategies have not been fully indicated in the financial statements.

Blue Moon also faces challenges from competitors in the industry. Brands such as Naais, Liby, and Bilang are also engaged in the washing and grooming industry slowly starting to enter the public eye. These brands have done a lot of exploration in categories and sub-brands. For example, Naaisi not only performs "soaps, powders and liquids" in hand-running care products, but also has several brands such as toothpaste, shampoo, shower gel, etc., and launches different series; Liby's "Dadaihua, "multi-brand" strategy has matured, and its product matrix includes detergents, shampoos, toothpastes, cosmetics, etc.

Moreover, when Said, Tide, and Longqi respectively launched beaded laundry gel in 2014, Blue Moon did not follow through, it seems that Blue Moon has no new expansion in the market other than laundry detergent.

Blue Moon liquid detergents control half of China's liquid detergent market share.According to initial disclosures, as of the end of 2019, in terms of retail sales, Blue Moon has the largest market share in the liquid detergent market, concentrated liquid detergent market, and hand sanitizer market, at 24.4%, 27.9% and 17.4% respectively.

Xu Yibin, executive director and chief executive officer of Yaocai Securities, said Blue Moon is known as P&G China. The IPO is very interesting. He thinks Blue Moon is the last exciting new stock of the year. He said that in the last three years there has been a continuous profitability and continues to increase every year,

What is the relationship between Blue Moon and Hillhouse Capital?

Zhang Zhiwei, co-director of Xincheng Securities, said that JD.com, which has frozen capital of more than 560 billion yuan, can be returned to circulation on time, and the returned capital can be taken from Blue Moon. It is expected that sales will get hotter. He said, if JD Health's first listing performance is good, there is an opportunity to attract more investors to subscribe.

Yaocai has a maximum margin of 35 billion, Phillip has more than 15 billion margins, UOB Kayxian has 20 billion margins, Xincheng 15 billion margins, and KGI 10 billion margins. Exhibition quota.

Source : inews.hket.com