Hope you're right as I'm a stock holder, but I shall remain a sceptic until I see the so-called "whites of their eyes" reflecting major AUD $ signs.
As to my own estimates, I'm a management consultant so simply used %'s and ratios of what I've previously seen in similar industries when undertaking case work. As a sanity check, if a pharmacy retails this test kit for around $30/unit, then my wholesale price estimate of $10 is a bit optomistic at 33%. More likely the wholesale price would be closer to $7.50 (ie 400% mark-up to get to $30). This should then be discounted for a large-scale volume purchase, and given the relative living cost differentials (and exchange rate deltas) between Australia and China, I figure an even bigger discount will be given to make the product financially attractive and "affordable" to the Chinese. Hence my pessimism on the overall value to HGR at this stage.
Nevertheless, if recurrent and much larger quantity sales eventuate from this Chinese distribution channel I will be a very happy camper in the longer term.
HGR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
