One of the biggest movers on the market today was the AuMake International Limited (ASX: AU8) share price.
It hit the ASX boards with a listing price of 8 cents per share this morning and finished the day a whopping 194% higher at 23.5 cents.
What is AuMake?
AuMake is an Australian-owned retail company which connects Australian suppliers directly with daigou and Chinese tourists.
According to management, the company engages with the growing and influential daigou and Chinese tourist markets, offering a one-stop shop retail network that covers healthcare, body care, dairy products, and wool and leather categories.
Later this month the company expects to open its flagship retail store on George Street in Sydney's CBD.
Based on today's gain AuMake now has a market cap of approximately $69 million. In FY 2017 the company generated sales of $10.3 million, up from $3 million a year earlier.
Should you invest?
I can't help but feel it is a touch early to consider an investment in AuMake.
Whilst selling into China is certainly a lucrative business and the daigou channel is booming, I think investors should hold off an investment until there's proof that the business model works.
In the meantime, investors may be better off considering less risky investments in companies already taking advantage of the channel such as a2 Milk Company Ltd (Australia) (ASX: A2M) or Blackmores Limited (ASX: BKL).
