I attended yesterday's AGM and think that the recent price action is not warranted. NNW now has around 74m users/customers - that's more than any other Australian company at around 3 times the Australian population. Even though margins are a bit low the MD showed that recent customer acquisition cost is around 7 RMB or $A1.30 compared to Ali Baba at nearer $200. Current market cap of NNW is around $3 per customer which is way way under the valuation per customer of its peers. Business is still very much in growth mode. I think that the drop in earnings in 2017 has spooked the market but this is not new news - it reflects the new VAT taxes (like our GST) in China. NNW has done a miserable job at explaining the new VAT tax regime and impact on its accounts and business.
NNW Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
