Maybe worth having a look at the 2 infant formula companies (A2 Milk and Bubs). Of course, they benefit in the short term from the new government policies in China. But, I am also surprised to see that the 2 stocks have a low beta (0.10 for A2 and 0.35 for Bubs).
Of course, we need to have more details regarding the acquisition that A2 is expected to announce. Quite surprised by the rather good free cash flow yield of A2 (5 %, even if we remove the large impact of working capital decrease in FY 24).
Bubs is a recovery story which expects to turn profitable at EBITDA and cash flow level in FY 25. I need to look at it into more details, but good to see that they have both a large revenue increase and costs expected to decrease. Bubs share price has decreased by 90 % during the last 5 years, so a lot of bad news are probably already discounted into the share price.
