Dairy

While investors are encouraged to look through the one-off issues that have plagued Synlait Milk over the last year, uncertainty over demand from a2 Milk weighs on valuations

Opinion differs as to whether a2 Milk will be impacted by sharply declining volumes of infant formula sales in China or emerge from the pandemic with its market share protected by a strong brand

As was widely feared, a sharp slowdown in sales to China has materialised for a2 Milk, which has significantly downgraded guidance for FY21

A new global customer should help Synlait Milk counter the potential entry into manufacturing by chief customer a2 Milk but risks remain.

Sales of a2 Milk’s infant formula within China remain robust but the slump in daigou sales has caught the market napping and forecasts for FY21 are downgraded sharply.

FNArena’s Treasure Chest reports on money making ideas from stockbrokers and other experts. Elevated inventory accrued during the height of the pandemic has led to de-stocking of infant milk formula product in China. Is a2 Milk in danger of more permanent disruptions?

The Chartist reports a2 Milk is in a downtrend that may provide a good entry point, but likely not yet.

The New Criterion’s Tim Boreham explores one pending IPO and several already listed stocks riding the new wave of demand for non-meat meat and other protein alternatives.

Weekly Wrap: extension of JobKeeper and JobSeeker; many SMEs are not likely to survive the pandemic; a2 Milk growing market share in China’s Infant milk formula market

A2 Milk has been a beneficiary of the pandemic restrictions, with strong sales in online and re-seller channels, but will the effect of stockpiling subsequently unwind – and sharply?