Domestic washing and care giant Blue Moon was listed in Hong Kong today, with a market value approaching HK$100 billion.
It is worth noting that Blue Moon occupies a dominant position in the field of laundry detergent in the laundry care market, and is even known as the "No. 1 laundry detergent brother" in the market.
"Laundry Detergent Brother" Blue Moon's market value is close to HK$100 billion when it goes public today
Market data shows that Blue Moon Group (6993.HK) rose sharply on the first day of listing, with an intraday increase of more than 20%, and its market value is close to HK$100 billion. Hong Kong dollar.
According to the prospectus, Blue Moon is China's leading consumer-centered home cleaning care company, which develops, produces and sells a variety of products, covering three major categories: clothing cleaning care, personal cleaning care and home cleaning care.
According to the Frost & Sullivan Report, Blue Moon's laundry detergent, hand soap and concentrated laundry detergent products ranked first in market share in their respective markets in 2017, 2018 and 2019. According to the same report, Blue Moon ranked fourth in China's clothing cleaning care market and personal cleaning care market in terms of retail sales value in 2019, and ranked fifth in the home cleaning care market.
According to a Frost & Sullivan report, China is one of the world's largest home cleaning and care markets, with the highest growth potential among major economies. In terms of retail sales value, the market size of China's home cleaning and care market is expected to grow from RMB 110.8 billion in 2019 to RMB 167.7 billion in 2024, accounting for more than one-third of the growth of the global home cleaning and care industry from 2019 to 2024. . In particular, the clothing cleaning and care market is the largest market in China's home cleaning and care industry, accounting for 61.2% of China's overall home cleaning and care market in 2019. According to the prospectus of
Blue Moon, the number of Chinese consumers choosing high-quality products such as laundry detergent and concentrated laundry detergent is increasing day by day. This product is quite common in developed countries such as the United States and Japan, and the penetration rate in China has been growing rapidly. According to the Frost & Sullivan Report, the market penetration rate of laundry detergent in China increased from 32.0% in 2015 to 44.0% in 2019, and is forecast to further increase to 58.6% in 2024.
's financial information shows that the company's total revenue increased from HK$5.632 billion in 2017 to HK$7.05 billion in 2019, with a compound annual growth rate of 11.9%. At the same time, net profit increased from HK$86 million to HK$1.08 billion.
In the first half of this year, Blue Moon’s revenue was HK$2.435 billion, and its net profit increased from HK$218 million in the first half of 2019 to HK$302 million in the first half of this year.
Overall, the average selling price of clothing cleaning and care products remained stable from 2017 to 2019; in the six months ended June 30, 2020, its average selling price fell, mainly due to the new coronavirus The impact of the outbreak, including the temporary reduction of outdoor activities by consumers to maintain social distance during the novel coronavirus outbreak, has weakened overall consumer demand for clothing care products, resulting in higher discounts for clothing cleaning and care products; in addition, This has had a more severe impact on the Supreme brand of concentrated laundry detergent, which has a higher average selling price.
According to Blue Moon’s prospectus, the gross profit margin of the company’s products is relatively high, and has been increasing year by year in recent years. Its gross profit margin increased from 53.2% in 2017 to 57.4% in 2018, and further increased to 64.2% in 2019. , mainly due to the overall increase in gross profit margin of its clothing cleaning and care products. In terms of raw materials, the company's raw materials mainly include chemicals and packaging materials.
Hillhouse bets on Blue Moon, and the profit estimate is as high as dozens of times
According to the article, as early as 2010, Hillhouse exclusively invested US$45 million in Blue Moon's Series A financing, and added an additional US$1.03 million in 2011. Before the IPO, Hillhouse held 10% of Blue Moon's shares and was its earliest and largest external investor and Blue Moon's second-largest shareholder.
Regarding the listing of Blue Moon, Hillhouse founder Zhang Lei said: "Since its establishment 15 years ago, Hillhouse has been committed to looking for entrepreneurs with a great perspective. Along the way, it is outstanding entrepreneurs like Mr. Luo who have allowed us to The portrait of the "Great Pattern View" is getting clearer and clearer. We have been with Blue Moon for ten years now.Here I would like to congratulate every Blue Moon partner. It is your continuous innovation and hard work that have created the national brand "Blue Moon". Listing is the beginning of a new journey. We look forward to Blue Moon continuing to create new miracles and moving towards the goal of becoming a world-class leader in the daily chemical industry. ”
According to preliminary estimates, Hillhouse’s investment in Blue Moon has gained dozens of times.
