BAL day - aug 19th, page-223

The result is good, but not excellent, due to the concern about the growth of sales. Bal merely meet its sales target in its interim report. However, if you look at the production disclosed in annual report, you can see the increase in production is quite limited. There is no enough IF to sell and many sales are lost in the 2H17. Now we have the production from Fonterra, so this problem can be solved. Also, according to the data for previous two years, the sales in the second half are always struggling, so we may see another boost in sales in the first half of FY17.

The increase in profit margin is crucial, because a larger proportion of incremental sales will become profit in the next year. We are surprised by the NPAT this year derived from only 244m sales, so will the next year.

Regarding the SP movement today, I think we don't have to worry. Last year, SP rose from 4.61 on the day before report to a high of 16.5 on 30 Dec. But on the reporting date, The SP only increase from 4.61 to 4.92, a rise of 6%. Yes, it's better than today, because last year's report is more positive than today's report. But it's still "negligible", compared to the long term movements. Admittedly, it's impossible to triple the SP again this year, but I think 50% to 80% is possible.

Also, August 24th will be a big day, the report from A2M, BKL, BGA will give us a clearer picture of the industry, and many questions will be answered. Stay calm and wait for the gain.

Last thing, I just noticed AYS, its report looks good, but I know very little about the company, does anyone have some information or analysis to share?