Discount to participate in Ningde era, the market value of the participating shell house search instantly surpassed the leading domestic real estate companies... Following Hillhouse Capital stock speculation has become a trend in the capital market this year.
Nowadays, Blue Moon , which has been held heavily by Hillhouse Capital for 10 years, is about to be listed on the Hong Kong Stock Exchange. With the aura of "China's "No. 1 Laundry Detergent Brother" and "China's P&G ", it will break out of the previous listing this year. Mineral water faucet-- Nongfu Spring trend?
11 years of domestic hand sanitizer and 8 years of laundry detergent market leader, gross profit margin has exceeded 50% for 3 consecutive years
Judging from Blue Moon’s listing process, it officially submitted a prospectus to the Hong Kong Stock Exchange on June 29 this year, and plans to raise funds 1 billion, passed the hearing of the Hong Kong Stock Exchange on November 18, but the repeated delays in the IPO time recently caused market doubts. There was news that the Blue Moon IPO may not be consistent with the opinions of investment banks due to pricing issues.
According to the latest news, on the afternoon of December 3, Blue Moon announced its IPO pricing range was 10.2-13.16 Hong Kong dollars per share, issuing 747.1 million shares globally, raising 7.62 billion-9.83 billion Hong Kong dollars, and the final fundraising amount is expected Exceeding Nongfu Spring’s HK$8.15 billion. Judging from the IPO process, it will conduct IPO from December 4th (this Friday) to December 9th, and will be officially listed on December 16th. Its entry fee for a new lot (500 shares) is HK$6,646.
In addition to Hillhouse Capital, which has been holding firm for 10 years, Blue Moon’s IPO also introduced BOC Hong Kong Asset Management Co., Ltd., Volkswagen (Hong Kong) International Co., Ltd., Fullerton Fund, and Yitian Investment, a subsidiary of Changjia Group . Co., Ltd., Poly Platinum, which is wholly owned by the Greater Bay Area Fund, and VAM LLP, which focuses on investment in the consumer, technology, and medical and health fields.
According to the prospectus, Blue Moon was founded by Luo Qiuping in 1992. In that year, he created his first product, Blue Moon Powerful Oil Stain Buster. In 2000, he launched the first personal care cleaning product - transparent packaging Blue Moon Antibacterial Hand Sanitizer. In 2008 and 2011, Blue Moon launched deep cleaning care laundry detergent and hand washing laundry detergent. In 2018, Blue Moon Supreme Biotechnology Laundry Detergent was launched. Judging from its development process in the past 28 years,
found that 2003 and 2008 were important turning points that drove its growth. The outbreak of SARS in 2003 made it a leading brand in the hand sanitizer category, and in 2008 it began to fully enter the laundry industry. liquid market.
Judging from its performance in the past three years, Blue Moon has also delivered a satisfactory answer. Operating income was HK$5.632 billion, HK$6.768 billion and HK$7.050 billion respectively, with a compound annual growth rate of 11.9%; net profits were HK$86.16 million. Hong Kong dollars, HK$554 million and HK$1.079 billion, with a compound annual growth rate of 254%; gross profit margins in the past three years were 53.2%, 57.4% and 64.2%, all exceeding 50%.
In the first half of this year, although the company's revenue dropped from HK$2.72 billion in the same period last year to HK$2.436 billion in the same period this year, net profit increased by 38.5% from HK$218 million in the same period of 2019 to HK$302 million.
Frost & Sullivan report shows that Blue Moon has ranked first in the domestic laundry detergent market share for 11 consecutive years since 2009, and has ranked first in the domestic hand sanitizer market share for 8 consecutive years since 2012. The total retail sales value of China's household cleaning and care industry is expected to grow from 110.8 billion yuan in 2019 to 167.7 billion yuan in 2024, with a compound annual growth rate of 8.7%.
Blue Moon’s valuation is comparable to Procter & Gamble has doubled. On the eve of its listing, Chairman of the Board of Directors Spectra Company has made three and a half years of profit
Although Blue Moon’s performance and industry status are remarkable in the prospectus, compared with The valuation of P&G and its pre-IPO operations have put a question mark on whether it can maintain such a good momentum after its IPO.
If calculated based on the net profit of HK$1.079 billion in 2019, the company's price-to-earnings ratio is between 54.3 times and 70 times. As of today's close, the valuation of P&G is only 24.84 times. If calculated based on the latter valuation, Then Blue Moon’s valuation will be cut in half.
In addition, Blue Moon, like Nongfu Spring, resorted to surprise dividend distribution before going public. As of December 31, 2019, the company had distributed a total of HK$189 million in dividends to major shareholders, and in the middle of 2020, it will make a profit of HK$189 million. 84.9 million was paid to major shareholders in interest.
It is worth mentioning that Pan Dong, chairman of the company's board of directors, has received a cumulative dividend income of HK$2.229 billion from 2013 to now. Before the listing, shareholders received a cumulative dividend income of HK$2.489 billion. Pan Dong received a dividend income of HK$2.314 billion in 2020 alone. In the past three and a half years (from 2017 to mid-2020), the company has achieved a cumulative net profit of HK$2.022 billion, and all the company's profits for the past three and a half years have been distributed.
Hillhouse Capital stuck to Blue Moon for 10 years and made 20 times the profit. Wait, what about the next NIO OR Uxin used car ?
Blue Moon’s listing bell is about to ring, and Hillhouse Capital’s ten years of persistence have finally come to an end. As early as November 30, 2010, Hillhouse Ventures invested US$45 million in Blue Moon, and an additional US$1.03 million was added the following year. Before the IPO, Hillhouse Capital became the largest institutional shareholder by holding 10% of Blue Moon's shares.
On the eve of this listing, Hillhouse Capital received a dividend of HK$230 million, which basically recovered the investment principal 10 years ago. If calculated based on the highest HK$13.16, the value of Hillhouse Capital’s stock holdings will reach 7.563 billion Hong Kong dollars, plus the previous 230 million Hong Kong dollars in dividends, Hillhouse Capital has earned more than 20 times with Blue Moon.
If we look at Hillhouse Capital’s investments in the past 10 years, Blue Moon can be regarded as its most successful case in the past 10 years. According to incomplete statistics from financial websites, Hillhouse Capital invested in 20 listed companies before the IPO round. Judging from its investment cases, Hillhouse Capital mainly bets on the three major directions of consumption, mobile Internet and medical care. As of today At the close of trading, there were 14 projects that could bring considerable profits to investors in the secondary market, including JD.com, Debon Logistics, WuXi AppTec , Innovent Biologics, Xiabuxiabu, NIO , Hansoh Pharma has doubled its sales since its launch.
Take WuXi AppTec , which has the largest increase since its listing, as an example. WuXi AppTec Chairman Li Ge attracted 60 million from Hillhouse Capital after pushing Hequan Pharmaceutical to be listed on the New Third Board in 2015. Last year, Hillhouse Capital also frequently increased its investment in the CRO field. Zhang Lei entered WuXi AppTec with a heavy position of approximately 4.83 billion yuan.
But for Hillhouse Capital, it is not always a hit. There are always times when it overturns. For example, it failed in Weilai Automobile , which has the second highest yield, and significantly reduced its holdings in the third quarter of last year. The stock was cleared in the fourth quarter, but at the same time, Weilai Automobile started the process of ten times its shares this year after hitting a record low of $1.19. It can be said that it fell before dawn. Also causing heavy losses were Red, Yellow and Blue Education, Uxin Used Cars and Mogujie.
Among the recently listed companies in the Hong Kong stock market, Jiahe Biotech, Hejing Youhuo and Simcere Pharmaceuticals have also suffered losses. Among them, Jiahe Biotechnology, as the largest shareholder, has lost more than 40% of its market value. In addition, Simcere Pharmaceuticals plunged 19.85% on its first day of listing. Only investments from Sunac Services and WuXi Junuo saved its face.
For Zhang Lei and Hillhouse Capital, they have excellent answers such as Blue Moon, which has doubled 20 times in 10 years, WuXi AppTec , which has surged 7 times in 2 years since its listing, and of course, NIO , which is cutting its teeth before dawn. Unfortunately, whether Blue Moon can make up for their regrets after its listing depends on the faith of investors.
