It's pretty much par for the course when it comes to A2M.
High expectations, solid results, market sells on the facts. As always, I say come back in 2 weeks and let's see where the SP lands.
My own view is that the results show steady and reliable execution (without fireworks) from DB and team. They should form the basis for further gradual appreciation in the SP much like over the past six months.
As someone pointed out, the sales are not far off where we were at just pre-COVID, which is quite remarkable when you consider what has happened on the daigou front since then.
It is also probably the clearest example of proof that A2M can substantially grow in a declining market with respect to China. This is due to the pockets of growth it has positioned itself in, and there is much remaining runway for further growth and market share expansion in these areas (take BCD cities, for instance).
Daigou remains a blank canvas at this point, in the sense that it is still flat and it reads to me like the company has relatively low expectations for this segment - so any pick up with the return of international students/tourists etc. will be a bonus rather than something actively anticipated already.
I also glimpsed another new product in USA market - milk powder with protein and collagen? Can someone please explain what this is?
A2M Price at posting:
$6.58 Sentiment: Buy Disclosure: Held
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