BoCom International published a research report that BoCom held an one-day non-trading roadshow (NDR) in Hong Kong. The company's management and investors (including private equity funds) focused on four major issues, including the sales recovery progress of Bawang's core shampoo brand, the optimization of distribution channels, the business of herbal tea and herbal skin care products, and the lawsuit between Bawang and next Weekly.

The company's efforts under the leadership of a dedicated management team have strengthened BoCom's confidence in Bawang to regain its share of the shampoo market. As a local FMCG brand focused on Chinese herbal medicine products, BoCom International does not think that the Bawang brand has passed its peak. As the company continues to improve the attractiveness of products, enhance distribution capacity and operating efficiency, it is believed that Bawang Company has the ability to create new sales brilliance.

BoCom International advises investors to buy Bawang shares at current levels. Based on 1.8 times the forecast of Bawang's sales per share in 2013 (1.8 times equal to the average Pmax S ratio of China's FMCG industry in 2013), the Bawang "buy" rating and the target price of HK $1.2 are maintained.

Bawang fell 0.03 per cent to HK $0.69 yesterday.