For those who would like a breakdown of the revenue forecasts...

For those who would like a breakdown of the revenue forecasts they are all sourced directly from JAT announcements.

First the FY 2020 results. Revenue was A$60m with a gross margin of 32.5%. This was during the worst economic downturn of covid19 and the company still increase gross margins.



Since the end of FY 2020 sales rebounded up 111%.


JAT entered a supply contract worth an additional A$32m for FY 2021.


Then factor in additional streams of revenue from February onwards
- Shanghai retail store
- Online retail store
- Launch of Abbeyard A2 Protein
- 1,000 Wumart stores commence selling

JAT has also said to expect lower costs from doubled production at ANMA and Chinese manufacturing coming online.

So how did we come to the revenue forecasts?

FY 2020 revenues A$60m + Sunnya deal A$32m = $A92m in revenues (minimum). They've already demonstrated 111% growth last quarter and have some high revenue streams coming online from February. It is likely they can achieve similar growth again. However to keep it conservative even on A$92m revenues with the same gross margin of 32.5% you can expect A$29.9m. Exactly what we assumed. That is not factoring in any additional sales revenue from the Shanghai retail store, online retail store, launch of new Abbeyard A2 protein and the 1,000 Wumart stores that are all expected to contribute to bottom line from February onwards.

It would be wise for JAT management to do an earnings update and set the benchmark. Unless they are waiting for the quarterly results and let them do the talking. I suspect the first few days of the Shanghai store with see entire store sell outs and make for some welcomed news flow.

Hope this clears the air for those thinking this run has no merit. This is not a 1 day trade. February onwards could see JAT return to it's former glory.