AUS
NZ
UK
CA
USA
IND
Star Combo Pharma expands its Australia-China footprints with its premium beauty and health care products now reaching the online shelves of leading e-commerce platform Austoyou. This translates the recent acquisition of highly-visible retail store brand Koala Mall and an Australia-China e-commerce platform Austoyou.
A distributor and manufacturer of health and natural beauty products, Star Combo Pharma Limited (ASX:S66) reinforced its business model by acquiring the transformational Business-to-Consumer channel, Austoyou. That means Star Combo, that has so far been operating through its Business-to-Business channel in China, will now be seen selling its products directly to Chinese consumers.
The acquisitions well define the companyâs core strategy to acquire e-commerce platforms that could revamp its operations resulting into the evolution of business from supplements and vitamin supplier to a fully integrated Australia - China health care company.
Star Combo Pharma led by Managing Director Star JinXing Zhang offers a wide range of products including vitamins, healthcare supplements, natural beauty and skincare. These products are distributed under the company-owned brands including Costar, Amax and J&K.
China represents a strong market for the Australian skincare, vitamins and health supplements. In 2018, the Chinese market for these products was estimated to more than US$5.2 billion as Chinese consumers have a high preference for Australian produced products because of their premium quality and strict regulation and quality control being followed.
Now with the acquisition of Ausway Group of companies, Koala Mall and Austoyou, Star Combo gets an immediate competitive advantage to penetrate into B2C market for Australian beauty and health care products in China.
Ausway is into the distribution business for healthcare products including dietary supplements and vitamins both in Australia and overseas. Austoyou directly offers over 5000 product lines that are highly demanded by Chinese consumers through the companyâs e-commerce platform. Whereas, the retail brand, Koala Mall, showcases a premium shopping experience for the range of Star Combo Pharma skincare, vitamins, milk products and health supplements across various retail stores in Sydney.
Moreover, the acquisition happened at a consideration of $10 million, representing a 10x multiple on FY18 Net Profit After Tax (NPAT) of AUD$1.0 million. However, Star Comboâs management expects NPAT of the acquired businesses to grow in excess of 20% in Fiscal 2019.
Star Combo Pharma was incorporated as a manufacturer and distributor of beauty and health care products on 6 November 2016. It is engaged in producing health products that are made from natural ingredients with scientific research and development undertaken in their manufacturing process.
It undertook an initial public offering on 15 May 2018 that raised $7 million funds to the company to get listed on Australian Securities Exchange. As of 18 February 2019, the companyâs share price is noted as A$0.65 with 79.56 million outstanding shares and companyâs market capitalisation of $49.72 million.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
