We know that next year capacity just for powder will be 2340T (2,340,000 KG). With new customers popping up left right and centre we can almost be sure this capacity will be taken up, with potential it will be increased beyond this.
A conservative sale price of USD $25 per kilo with a profit of USD $10 would mean:
Revenue: $58,500,000 Profit: $23,400,000
Then the conversion to AUD happens
Revenue: $86,300,000 Profit: $34,530,000
A P/E of 30 would be approriate for such rapid growth in growing market for cosmetic zinc oxide (of which ours is the best). Target Share Price: $17.58
All this does not take into account the plethora of IP the company has that it is yet to capitalise on. As well as other products beyond powder that are currently being sold.
We know that their IP is the market leader and as new FDA regulation comes into play existing cosmetic brand owners will have to shift their formulation to us or an (inferior) competitor.
ANO Price at posting:
$4.53 Sentiment: Buy Disclosure: Held
