A surge in Blackmores' share price could continue well past the recently hit $100 milestone, with China's voracious appetite for vitamins and supplements far from satisfied.
The company's market value is nudging $1.9 billion after its shares soared 20 per cent this week, passing the $100 milestone and now touching $109.21.
Skyrocketing sales to China as free trade zones were opened last year helped Blackmores achieve 83 per cent profit growth in 2014/15.
Its sales in China have gone from just $2 million in 2013/14 to $75 million.
"I think Blackmores is a brand that is well regarded and highly recognised, with high visibility with consumers in Australia," Morningstar analyst Chris Kallos said.
"We throw China into the mix and suddenly numbers extrapolate off the radar."
With the details of a China-Australia free trade deal still be to be finalised, there's more scope for sales growth for Blackmores.
Currently, it can only sell to China via an e-commerce platform, although a large number of Chinese tourists in Australia purchase Blackmores products.
But prices for Chinese consumers could nosedive as the FTA sees tariffs incrementally wound down to zero.
"We think this will close the gap between their products going through the supply chain in Australia and the opportunity for Blackmores to directly distribute into China," Mr Kallos said.
"It will make it much more attractive for the Asian side of the business and maybe take market share from downstream customers in Australia."
The company's shares were worth just over $35 last Christmas, but management has indicated a share split is not currently on the cards amid soaring values.
The stock is held by just 7,800 investors.
"I think the illiquidity of the stock is part of the drive in the share price," Mr Kallos said.
"The volumes are quite low and that's been a big driver of the share price."
Not only are the shares at record highs, Blackmores boosted its final 2014/15 dividend by 83 cents to a fully franked $1.35.
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