I did not really understand this article. However is this bad news for the importer, Bao Ningjian commerce (Shenzhen) Co., Ltd., rather than A2?
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The original article is in Chinese character and I have used google to translate into English. You are right it is the importer's problem not A2, but Chinese medias have used it to attack foreign dairy products. The Chinese government intends to support local dairy companies so any minor issues can give them chance to attack.
Just a word of caution and advice. be careful in future with Google translation as the original content can be interpreted to a totally different meaning.
And in this case, it may have influenced some people's trading decisions in a hurry.
Thanks for clarifying anyway.
Yes, indeed. Have a look at this: https://www.truthorfiction.com/chinese-hotel-brochure/
My v rough calculations at an appropriate SP following this update.
As at thee 15 Feb 17 Market update ATM reported it achieved NPAT of 39.4 mill. At that time I say a fair value SP at around $2.80.
Now that full year 2017 sales are likely to double the first half we can probably expect full year NPAT ranging between $80 to $100 mill which in turn equals a EPS of 11c to 14c.
On this basis at a P/E of 30 (fair for a growth company IMHO) a fair SP would seem to be in the range $3.30 to $4.11
I'm no accountant so welcome others input.
DYOR - Holding and happy.
Increased marketing costs could possibly offset your forecast NPAT...
Luckily the growth is almost entirely their Infant Formula [ highest margin product they produce ]
Expect to see ratings upgraded in the coming weeks, maybe the idiots at Citi will jump on board this time...
$3.58 new high (daily now ! )
Had about 2m shorted on A2M.ASX yesterday [ highest number in almost a month ] - a retrace back into the 320's is likely