Out of the companies with exposure to the infant formula market Just five of the ASX’s baby bottle crew have gained value in the past three months. Over the past three months, of the 16 companies experimenting in infant formula 10 of them have gone backwards.
With two-thirds of Aussie companies set to increase their investment in China in the coming year. This is despite recent report suggesting Australian business in China is booming.
Earlier this year from the hype that these companies were generating, it’s a bit of a downturn. The group at one stage was averaging year-on-year share price returns of 170 per cent that figure has now fallen to a 1pc loss year-on-year.
Keytone Dairy (ASX: KTD) - The company raised $15 million in its IPO and shares are currently up 31pc on three months ago sitting at 45c. At the moment, it is the best performing infant formula stock. It is building momentum, Chief James Gong in his September quarterly update told investors that it had kicked off the 2019 financial year in decent style.
He said, ‘with the number of wins they have had in the first quarter, they are excited and pleased as a listed company on the ASX and are proactively working on the execution of the four-pillar growth strategy.’ ‘More broadly South-East Asia the company continues to form and forge new relationships in their core markets of China as these large addressable markets change and offer new and exciting opportunities.
Bioxyne (ASX: BXN) - With its shares up 11pc in the past three months the company has been a strong performer. Acquiring a majority ownership in an Indonesian sales company, the company’s biggest move was expanding its Asian distribution footprint.
For 95 percent of P.T. Gamat Utama, it paid $121,000 up front an Indonesian direct sales business with 2,500 members. A range of supplements and health products is distributed by it.
Clover Corp (ASX: CLV) - With its share price dropping 1pc, is pretty neutral over the past three months but it is up 99pc over the past year. A technology more recently that converts large volumes of liquid milk into powder was invested into by the company.
a2 Milk (ASX: A2M), Bellamy’s (ASX: BAL), and Blackmores (ASX: BKL) and though the companies at the bigger end of town, are all down slightly in the past three months they are still generating money. Recently a2M milk posted a 40% growth compared to the PCP and posted a record profit due to sales in China.
Meanwhile, back in April, Longreach Oil (ASX: LGO) moved into the infant formula market way, after more than a year in suspension the former oil and gas explorer has yet to resume trading.
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