Looking good!Sohn stock pick: Tribeca's Jun Bei Liu - A2 Milk...

Looking good!

Sohn stock pick: Tribeca's Jun Bei Liu - A2 Milk (A2M ASX)

Jonathan Shapiro

Jun Bei Liu of Tribeca pitched a stock that has divides the investment community, and over the years has been the difference between a small cap manager beating of lagging its index - A2 Milk.

Jun Bei says the market is under-appreciating the growth opportunity for A2 in the lucrative Chinese infant formula market. Its edge, she says, is that it has a license to sell directly in stores in China.

While Chinese consumers spend 75 per cent of their money online, Jun Bei says the “real prize is the offline channel.”

“They are picking up investments in the offline channel – the mother and baby stores."

A2 is considered an expensive stock but she says the market is overly fixated on the need to spend money in the short term.

“If we adjust for its growth, A2 is one of the most attractive opportunities in the Australian market.” he said.

She said there is at least 30 per cent to be made from this stock over the next 12 months.

Last year Jun Bei pitched New Oriental, an education stock that has doubled in value over twelve months.

The A2 pitch is along the same theme: that in China, as a result of the one child policy, there are 6 adult pockets spending on one child. That means they're paying up for education, and in the early years of a child’s life, on nutrition.