A2m PE and price Forecast with increasing sales, page-6

Nice work Naomi. In simple terms the company reported 68 million in sales from Formula alone in the last forecast update. This was a 6 month time frame. A 12 month time frame staying on the same demand/supply scenario would generate 136 million but in that last forecast the company is still experiencing out of stock on shelves.

I would say the forecast for 12 months would conservatively run closer to 150 million revenue. The thing is there is a change in policy now in China that analysts need to consider and provide assumptions for when finding a fair price. Now that the Chinese are allowed by law to have two children these sales could potentially double in 2016 and 2017. IMO there is currently a rush for those older women restricted to one child to now have a second. This will be increased demand on top of the normal birth rates. Revenue for Formula could run close to 300 million in 2016 IMO due to the policy removal.

Using standard sales numbers from the previous forecast without applying any further increase total Group revenue could very easily be pushing 600 million in sales. I'm expecting other sales figures to increase a minimum 10-15% though. So you could pretty much utilize the last row in your prediction table hence the reason behind the strong movement in share price. This is also why I believe we can move much higher.