Eagle Health Holdings Limited (ASX: EHH) has recently announced to have launched its new brand named ‘Zhang Lao San.’ As previously announced to ASX, the company is committed to executing its plan to open hundred education and experience stores across China. The company is a believer that the strategy of hundred stores can be better achieved through the promotion of the new brand Zhang Lao San.
The company will sell its own Zhang Lao San branded products through its direct stores, Zhang Lao San Education and Experience Store, online platform and WeChat channel. Zhang Lao San has been designed so that the company can offer an additional category of products which will complement the existing Eagle branded traditional health products. The strategy will allow the company to enhance its market presence and the growth on its existing sales channels to reach the over the counter market in the regions the company is planning to penetrate into and increase sales.
To start the launch, the company has developed a new health patch product with traditional Chinese medicine ingredients. This will help in getting relief from joint pains.
Eagle Health will integrate the new Zhang Lao San brand into its Eagle Health group, to sell health and nutritional products from Australia and China. This business model will help the company to build on its strong presence in the health products market in China and attain sustainable growth in the business.
As per the announcement in the recent past, dated December 3, 2018, the company has appointed Mr. Kobe Li, as the company secretary effective from November 30, 2018. Kobe has an experience of eight years in ASX compliance team. He was also a senior adviser following a portfolio of listed companies for the compliance, with listing rules of ASX. He also acted as a member of Governance Institute of Australia and been a lawyer to the Victoria supreme court. Meanwhile, Mr. Justyn Stedwell has resigned as a company secretary effective from November 30, 2018.
Now, let us quickly look at the performance of the Eagle Health Holdings Limited’s stock and the return it has posted over the last few months. The stock last traded at $0.175 (as at 1:50 PM AEST on January 10, 2019) with a market capitalization of $ 57.32 million. It is trading at an earnings multiple of 11.690 x with an EPS of 0.015 AUD. The company’s stock posted a YTD return of 12.50% and produced a negative return of 56.10% over the last six months’ period and a return of 2.86% over the last month. It has a 52-week high price of $0.415 and a 52-week low of $0.145. Even with few distributor deals at hand and strategic expansion approach, the stock is yet to gain traction among market players.