[ET Net News Agency, 22 February 2021] Daiwa Research initiated coverage of Blue Moon
Group (06993), the largest liquid laundry cleaning producer in China with a 33.6% market
share in 2019, with a "buy" rating and a target price of HK$21.
The research house said Blue Moon recorded a revenue CAGR of 12% over 2017-19. Daiwa
forecasted a 24% revenue CAGR over 2020-22, driven by (1) its significant exposure to the
online sales channel, (2) ongoing development of new products for specific needs and
enhanced value, and (3) leveraging its existing brand recognition and sales network to
launch other products, like hand wash.
Daiwa expects Blue Moon to remain on a fast net-profit growth trajectory, recording a
42% CAGR over 2020-22. (KL)