A2M 1.50% $5.90 the a2 milk company limited

A2M Strategic Valuation, page-4

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    MorningStar Updated Review:

    *Highest growth days behind it
    *However still expect decent future earnings growth of 12%pa over the next decade.
    *Because of limited capital requirements, A2M expected to generate excellent returns on invested capital
    *Narrow economic moat to remain
    *Key to A2M long term success will remain China where A2M generates 80% of its profit. Expect A2M to continue to grow market share in China over time, increasing its market share from the current 6% to 16% over the next 10 years.

    Forecast future underlying earnings:
    FY 21: 31c
    FY 22: 44c
    FY 23: 57c

    Expected future increase in book value:
    FY 21: $1.73
    FY22: $2.17
    FY23: $2.46

 
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