It’s very interesting to read these analyses - thank you
@talk-less for posting translations and summaries.
Looking into this, there is obvious dominance in the China market from Feihe and strong market presence from the others in the list but how exciting to be one of the top 5!
For context, the China infant formula market is valued around USD18Bn annually. Leaving Feihe’s market share aside there is over 80% of that market up for grabs. Every 1% of the market A2M can secure is worth nearly USD$200m (~300m in AUD/NZD).
My confidence in A2M comes from:
- position in a dominant market which offers $300m revenue for every 1% of market share I can capture
- projected CAGR in the infant formula market of 7.5-8%
- other markets outside of China
- other products outside of IF
- good capital management
Those who criticise the management team, dividend/buy-back decisions etc really need to look at the consistent growth reported in revenue, profit and market share over the past 4 years. You may want it to be larger or quicker but in the long term the market values consistent growth with no surprises over emotion driven opinions.
For me, it’s not hard to see a path for this 4Bn company to reach a market cap of 6Bn…. 8Bn….. 10Bn…..
DYOR (and share your thoughts)
(20min delay)