These two companies are quite comparable as they are running similar products in same food sector in Australia
products: AHF :a2 organic milk/ infant formula
. JAT : dairy nutrition powder
MC: AHF $14m JAT $55m AHF is 1/4 of JAT
Cash: AHF $5m. JAT$2m
Management:
. AHF ex the a2 milk company senior management members
JAT: Chinese background team
Profit: AHF : $-3m ( but management just changed)
. JAT nil ( just break even)
NET asset as at April 2024 :
. AHF $31m ( only $0.6m intangible asset)
. JAT. $6.8m ( including $5m intangible asset)
conclusion: compared with JAT, AHF is significantly undervalued, AHF’s current SP/MC is still only 40% of its tangible assets, even after the management has recently been changed. With the new management ( a2 milk company background) in charge of the business now, we expect AHF could still focus on a2 milk production and could be developed as a mid scare Aussie dairy company in next two years.
By the end of this year, AHF’s market capital will exceed JAT’s.
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