China shampoo maker holds head high amid improving returns
Monday, June 15, 2009
Listing candidate Bawang International - the mainland maker of shampoo promoted by actor Jackie Chan Kong- sang - says it will not cut prices as sales volume rose in May from April despite the economic downturn.
The company plans to list in Hong Kong next month to raise HK$1.95 billion, according to sources. Its offer price will be between 15 and 18 times its estimated earnings this year, sources said.
"Some of our customers may switch to cheaper brands, but we won't take any price-cutting approach as we are targeting the medium- and high-end market," said Bawang chief executive Wan Yuhua.
The Guangzhou-based firm plans to launch a range of skin-care products in the second half. It now sells herbal shampoo, bath products and toothpaste. As of December 31, Bawang had 567 distributors in the mainland, Hong Kong, Macau and Singapore.
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Separately, sources said 361 Degrees International, a Fujian-based sportswear maker, plans to go public in Hong Kong to raise HK$1.56 billion. It is expected to list on June 30. MANDY LO
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