Quote Originally Posted by FarmerHamilton View Post
They look like they have doubled the P&L this year from last. The new infant formula plant must be cranking as I think that is a good way ahead of the 2013 budget. I also reckon they were long WMP in a rising market compared to Fonterra and have also out hedged them ... 1c on the FX makes a big difference. All in all looks like they have had a great year and there milk supply won't have been affected as badly as the drought affected Fonterra regions as Synlait are probably almost 100% supplied from irrigated farms in Canterbury.
2013 profit is quite certain as at the time prospectus are prepared, 2013 financial year has almost gone(have 31 July year end). Investors will be happy with the result of 2013FY as profit is almost doubled. If people just look PE ratio, seem the share is not cheap. But given the earnings go up 100% thus PEG is only about 0.3, very cheap.