Tmall, page-30

For the time being I would say , certainly moved up the ladder since I checked last time a few weeks ago. Of course A2 is running a campaign and providing a little bit discount . This is CEBC channel. What it tells me is the CEBC channel volume might be recovering. The domestic online channel the Taobao is of course dominated by the domestic brands such as Feihe and Menniu etc. A2’s domestic Taobao online volume is about 1/9-1/10 of the dominant Domestic brand as you would have expected. But if you throw in the CEBC channel volume, it looks to me A2 is gaining the market share , although their market share is still small compared to the domestic players which matches their presentation. A2M’s focus is offline in the M&B store with the help and sales network of exclusive domestic dealer State Farm Shanghai. That explains to the rapid offline store rollout. On the imported adult powder category , Davendale and Anchor ( Fonterra) easily take the top 3 with some European brands. There is also an Aussie brand called Maxigenes ( Promoted by Chemist warehouse on Taobao & Tmall) they’re getting good volume behind Anchor .A2 is quite behind on that , about 1/10 of Davendale’s volume. It tells you Daveondale is making good money in China.

on a side note , Murray Goulburn used to be a listed company and the management completely screwed up the company and end up in the hands of a Canadian mob Saputo and got delisted . And the Canadian mob is making sound profits.

Another interesting fact Saputo’s current market cap is $16b CND , with a revenue of 14.5b and net profit 600m at PE trading at 26. 10 times A2M revenue and only 3x profits and getting traded at PE 26. You can clearly see the value A2M is offering , 3x times profitability of Saputo and current PE at 25 and on the way to recovery. Most people in this forum only look at China and ANZ when doing some fundamental calcs. But if you cast your eyes on a global market , you’ll start to realise the opportunity. I was wondering why it appears there are a few Canadian bank in the main share holder list and after I checked Saputo , I now know why.