19% growth year on year. 40m profit and a market cap of $150m, this company should valued above $700m. I feel like I've read the prospectus wrong or there's something else at play because at first sight this seems to be a really cheap buy in.
My inner gut says they're listing to get a foothold in Australia. Ie they're here to tap into the Australian brand and production methods to take back home. I have no issues with that as long as standards are met. It only takes a health scare to destroy all the value now in a2m and bal.
In terms of the product I have no idea so I'll generalise. The way Bellamy's and co are priced in China and the way the Chinese diet is changing, I 100% believe Chinese dairy companies will thrive once again over time as they rebuild their reputation. The poor want what the middle class/ rich have but they won't want to pay the same price not when the average pay is $5k. What do you guys think?
BTW if you buying into the IPO use onmarket. Seriously easy! Let me know if you think I've been looking at the numbers wrong.
CDC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
