IPO Analysis: Nureca Limited
Industry: Health and Wellness
Products: Identified by Dr. Trust. Blood pressure monitors, oximeters, humidifiers, wheelchairs, electric massagers, breast pumps, nutritional supplements like fish oil, botin, multivitamins and other lifestyle products such as fitness trackers
Business model: They outsource manufacturing to other countries and hire a manager to oversee production. They have recently setup a plant to assemble goods with a capacity of 1k units a day
Distribution: 90% via their own site and through some e-commerce channels. They have tied up with Croma to sell their products offline
Macroeconomic indicators: Sectors to consider are healthcare, e-commerce and DIY health devices. Healthcare has seen some good allocation in the budget and e-comm shows potential
Competitors: None in direct comparison, but the brand has to invest to build confidence. Also segmented competition from companies responsible for producing nutritional supplements or ones selling health tracking devices
Cons: No control on how they get items produced – hence, no control over cost. Not confident if people are ready to jump into the online healthcare market. Most products overlap with other players in the market
Financials in CAGR, YoY
Revenue: 123% increase (I)
Expenses: 140% I – mostly in advertising, legal and business export
PBT: 41% - supernormal but mostly due to the pandemic
Debt to equity ratio: <0.1 – this is good from 0.5 in March 2020. Company was able to pay off their debts
ROCE: 88% (Decent)
ROE: 70% (Decent)Investments increasing: Yes, but slow. Have recently opened an assembly plan
Future: Positive for the industry as a whole. Nureca should realize first mover advantage. The name Dr. Trust resonates well
Investable: Your decision.