Bolina investors worry over inflation, property curbs, competitive market

But here's some good news.

According to Maybank Kim Eng, investors’ concerns centred on Bolina’s high profitability and upcoming business development strategy as well as the chairman’s long-term vision. Investors were also worried about production cost inflation, a changing competitive landscape and potential property tightening measures.

Here's more:

With the focus on its own-brand business, investors asked about the group’s A&P strategy going forward and its attitude toward the export and commercial projects businesses.

Lastly, in response to concerns on the stock’s limited free float and trading liquidity, CEO and controlling shareholder Mr. Xiao insisted he had no plan to sell any of his shares now given its low valuation. However, he does welcome strategic investors.

Some good feedback. Most investors agree that Bolina could re-rate should it capitalise on its competitive strength to capture opportunities arising from urbanisation and industry consolidation.

Any evidence of growing market share and brand recognition on the back of a solid expansion of sales network in China should serve as catalysts. Meanwhile, investors are surprised with Mr. Xiao’s decision not to appoint any of his close relatives as senior management.

Overall, investors appreciate Mr. Xiao’s in-depth industry knowledge and strong entrepreneurship in transforming Bolina from an SOE-spinoff into a leading exporter and domestic brand within the ceramic sanitary ware space.