(AOF) – Roche Bobois gains 1.27% to 48 euros after announcing the signing of a letter of intent with a view to taking a majority stake of 51% in the company Shanghai Rock Castle Furniture, owner in China of the Roche Bobois brand franchise, which directly operates 3 stores (1 in Beijing and 2 in Shanghai) and manages 23 sub-franchise stores in different medium-sized cities. “The stock should react well to this news which opens the way to a new growth driver for the group”, supports TP Icap Midcap, which maintains its recommendation to Hold.
After successfully carrying out franchise buyouts in the United States in 2020 and 2022 and in France in 2023, Roche Bobois SA wishes to expand its direct presence in China, a country with high potential in which the brand has been present since 2004.
This participation should be effective in July 2024.
In 2023, the overall business volume achieved in China represented 23 million euros, including 8 million euros from the 3 directly operated stores. The Ebitda margin of Shanghai Rock Castle Furniture is thus at a higher level than that of the United States/Canada zone (which is already the leading contributor to the Group’s Ebitda with 27.1% EBITDA margin in 2023).
“We will wait for the transaction to be finalized before integrating it into our estimates,” continues TP Icap Midcap.
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