A2M 1.62% $6.66 the a2 milk company limited

Chart Update, page-24138

  1. 772 Posts.
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    hi Guys

    My take on the results.

    * Net profit of $155 million was higher than consensus
    * in the short term, it seems organic growth is limited to single digits without new products and entering new markets.
    * if DB is right about his view of the short term delay in having babies due to Covid in China, then A2 will be in a great position to capitalise on this in 12 months time.
    *DB made some other cryptic comments regarding new projects, alliances, products especially regarding an additional SAMR license. Hence, I am not that disappointed about the no capital return announcement conditional that in the next 6 months or so, we can see a new earnings accretive acquisition/ alliance that bolts on another business to the Group. This money provides the flexibility to achieve this outcome.

    I would have thought the weak outlook was already factored into the share price when it was $7 back in February.


 
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