China is the biggest single market in the world for IF, and with the increase from 1 child policy to 2 child policy this market has grown. The government is looking to abolish the restrictions on child numbers all together so expect this market to grow even further.
The expected growth into the Asian market is priced into the MC with PE ratio reflecting that. If/when SAMR is granted, would expect Bellamy's to PE ratio to come close to A2 in the medium term as the product lines increase to compete with A2.
Have been watching for an entry point for a few months to go long, but sitting on the fence whilst trading games are in motion. I am of the same consensus that the market is waiting for SAMR, and will continue to follow trend until its announced.
Company statement has stated that they are confident it will be this year. So timing will be key.
My baby is a Bellamy's baby, and so are my nieces and nephews who are based near Nanjing and Suzhou.
My wife regularly sends packages (they only want Bellamy's) back to China for our relatives, but she is not a Daiguo. She just does it to help out her family and doesn't make any money from it (sometimes we just pay for it ourselves and don't ask for any reimbursement).
One thing i'll add is id take what other Daigous say with a grain of salt. Product demand in China is dependant on region and word of mouth. Our friends and family around Nanjing and Suzhou all swear by Bellamy's, but in other areas they might love A2 etc. It's all about word of mouth and recommendations by friends over there. If your friend uses Bellamy's then chances are her friendship circle will too.
BAL Price at posting:
$9.56 Sentiment: None Disclosure: Not Held
