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$Estee Lauder(EL)$

A stock which I never thought I would have buy and have it in my portfolio.

I am into semiconductor stock and reit. One for growth, another for stable income.

Estee Lauder, caught my eye last year at the start of the pandemic. While I spent my more time at home, realizing all these EL products all around my house, and not mine, of course. Then I start to check out what kind of profit margin these company make. And to my surprise, their profit margin is 50-60%. And that make it a very good business. Comparing to technology company which I am familar with "ASML" they are at 40%.

So decided to do more read up on EL, started buying through DCA. And for the rest of the year, the trend just continue to headup.

Lately, it releases Q1 FY22 result. And I can say it had a very strong start. Everyone was thinking, with the work from home norm and mask wearing, for sure, result will not be too positive. But instead, EL rebound from COVID-19 with sales up double digits organically in all regions and up 18% for the group.

The management team reaffirmed the outlook for a 12%-15% EPS growth in FY22.

The recovery from COVID-19 is still incomplete, which means there is sizeable potential left in key regions and segments.

The dividend has been raised 13%, and more importantly buybacks have continued.

Net Sales growth also benefited from retailers ordering stock early as a response to global supply chain and logistical issues.

Compared to the pre-COVID Q1 FY20, Net Sales were 12.8% higher.

No regrets with buying cosmetic stocks. Some of friends actually laughed at me, for a guy to invest in cosmetic company. Well, to me, my objective is to own good stocks@Tiger Stars