Wilson Asset Management

While the Australian bourse has continued to sink lower, ASX-listed companies with exposure to the Chinese consumer have seen their share prices skyrocket as their earnings are boosted by sales to China. Blackmores and Bellamy's are two significant beneficiaries of the popularity of Australian-made wares. Their share prices have surged, up 390 per cent and 690 per cent respectively in the last 12 months, as their revenues from the Chinese market have soared. Far and away the most popular product category for export to China is skincare. Recent Austrade data quantifying searches for Australian products on mammoth shopping websites Taobao (consumer-to-consumer) and Tmall (business-to-consumer) revealed 40 per cent were for skincare. Food and wine accounted for 19 percent of searches and milk powder 16 percent. We see four comapnies poised to benefit from these trends; Blackmores (ASX:BKL), Bellamy's (ASX:BAL), A2 Milk (ASX:A2M) and BWX Limited (ASX:BWX). Find out more: (VIEW LINK)


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