https://www.livewiremarkets.com/wire...ay+23+May+2024
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A2 seems to be gaining fairly steady now?
Expect some substantial holding notices soon. That will show us who is buying..(Hopefully not Citi nor Goldman sachs)
https://www.shortman.com.au/top
Only 33rd on the ASX.
Probably making more money from thier massive pile of cash ( its something like 800m isnt it?)than they are from selling milk powder?
For sure the revenue number at ~800m blitzes the potential interest earnings, but i think total profit for last 6 months reporting period was something like 85M?
At this we could see sp in double digits veru soon. That’ll be some turnaround lead by DB, if it indeed happens.
Data and trends
In the first quarter of 2024, maternal and infant consumption data were released, and online sales of milk powder increased by 10.6% year-on-year.Recently, Magic Mirror Insight officially released the White Paper on New Consumption Potential in the First Quarter of 2024 (hereinafter referred to as the White Paper). In the white paper, the consumption trends and data of maternal and infant categories in the first quarter are disclosed in detail. In the first quarter of 2024, the online sales of the infant milk powder market reached 10.6 billion yuan, with sales increasing by 10.6% year-on-year. At the same time, the online sales of the infant diaper market and the infant nutrition market also maintained a growth rate, and the online sales of infant nutrition products reached 2.7 billion yuan, a year-on-year increase of 16.5%.
http://myguancha.com/post/23510.html
That will change dynamics quite a bit. A2M is a business that has been built off contract manufacturing- essentially outsourcing capital risk of product plants, and outsourcing production and supply risks (fixed/variable cost issues). It's helped A2M amass a huge cash pile.
Buying SML makes a whole lot of vertical integration sense, but they'll quickly need to build production management talent in house. A well run production plant is a wonderful thing, but it's easy to have a badly run production plant which sucks cash out of the business.