16-08-2013, 09:35 PM
Skin care companies are only valued at less than 10x PE base on historical earning...Hmm...
L’Oreal seeks more China glow with S$1.07 bln bid for skincare firm
PARIS/HONG KONG – L’Oreal has offered to buy Chinese facial mask maker Magic Holdings International for HK$6.54 billion (S$1.07 billion), a move that would put the world’s largest cosmetics group in the lead of the fastest growing sector in China’s US$15 billion (S$19 billion) skincare market.
China is the third-largest market for cosmetics in the world as well as for Paris-based L’Oreal’s products.
Magic Holdings has the biggest market share in the facial mask market, a sector expected to grow more than 35 per cent in the next two years, exceeding the 27 per cent expansion in the overall skincare market, according to data from consumer research firm Euromonitor.
L’Oreal’s takeover offer for Magic Holdings, equivalent to HK$6.30 per share, would be a small price to pay to expand in such a high-growth segment, said Ms Summer Wang, Hong Kong-based analyst at BOCOM International investment bank.
The offer values Magic Holdings at 9.1 times its last fiscal year sales. L’Oreal trades at 7 times its 2012 sales.
http://www.todayonline.com/business/lore...ncare-firm
L’Oreal seeks more China glow with S$1.07 bln bid for skincare firm
PARIS/HONG KONG – L’Oreal has offered to buy Chinese facial mask maker Magic Holdings International for HK$6.54 billion (S$1.07 billion), a move that would put the world’s largest cosmetics group in the lead of the fastest growing sector in China’s US$15 billion (S$19 billion) skincare market.
China is the third-largest market for cosmetics in the world as well as for Paris-based L’Oreal’s products.
Magic Holdings has the biggest market share in the facial mask market, a sector expected to grow more than 35 per cent in the next two years, exceeding the 27 per cent expansion in the overall skincare market, according to data from consumer research firm Euromonitor.
L’Oreal’s takeover offer for Magic Holdings, equivalent to HK$6.30 per share, would be a small price to pay to expand in such a high-growth segment, said Ms Summer Wang, Hong Kong-based analyst at BOCOM International investment bank.
The offer values Magic Holdings at 9.1 times its last fiscal year sales. L’Oreal trades at 7 times its 2012 sales.
http://www.todayonline.com/business/lore...ncare-firm