Hi I am new here, just got on board today @0.52.
First to thank
@HeyShinichi for your informative posts. Your post successfully arouse my interest in this stock.
I would like to add on some info to your analysis, mainly to supplement the retail situations in China for fellow investors who never been to China.
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In 2013, Dashang is ranked no.12 in terms of revenue among China retailer group, where Yonghui is behind at no.13.
Bear in mind quite a significant number of the retailers ranking 4-11 are foreign-owned. Therefore Dashang & Yonghui are considered big players among domestic-owned retailers.
So, what has this to do with BFC?
Foreign-owned retailers are targeting low income consumers (similar to Costco Aldi in Australia), imo which is backed up by evidence that they have been focusing to expand their stores into 3rd-4th line cities in China over last few years.
Whereas in case of Dashang & other domestic owned groups are still focusing in main big cities targeting the middle class consumers.
So clearly BFC has picked the right partners to distribute their products. Not to mention that Yonghui, though at lower market share, is the market leader of fresh food, as they promote themselves with image of premium-grade fresh fruit & vegetables and meat. Their fresh food market occupies 46% of their total revenue which has the highest ratio among its peers.
Hope this helps my fellow investors to understand further in Dashang & Yonghui.
This post is informative only and not investment advice.
In return, any reply to clarify the cash flow position of this company will be greatly appreciated.
(20min delay)