shares dump today

http://www.bjnews.com.cn/feature/2019/06/03/587078.html

(courtesy of Google Translate...too wordy I just did first half)
(key info: Sevenministries and commissions issued the "Domestic Infant Formula Milk PowderEnhancement Action Plan", striving to stabilize the self-sufficiency levelof infant formula milk powder by more than 60%.)

Sevenministries and commissions issued domestic milk powder upgrading program toreveal four major trends in dairy industry development

Sevenministries and commissions issued the "Domestic Infant Formula Milk PowderEnhancement Action Plan", striving to stabilize the self-sufficiency levelof infant formula milk powder by more than 60%.

XinjingNews (Reporter Guo Tie) On June 3, the National Development and ReformCommission, the Ministry of Industry and Information Technology, the Ministryof Agriculture and Rural Affairs, the General Administration of MarketSupervision, the General Administration of Customs and other seven ministriesjointly issued a notice on the issuance of the "Domestic Infant FormulaMilk Powder Lifting Action Plan" . Affected by this news, on June 3, 13A-share listed dairy stocks rose rapidly in the end.Straight Flush datashowed that on June 3, the dairy stocks rose 2.13% overall, among which XinnongDevelopment, Beinmei and Western Animal Husbands hit the daily limit, rankingthe top three in the increase list; Maiquer and Sanyuan shares followedclosely, respectively. It reached 6.99% and 4.98%. In addition, Cody Dairy,Huangshi Group, New Dairy, Yantang Dairy, Qiaqia Food, Tianrun Dairy, Yili, andManor Ranch also gained varying degrees, ranging from 1.33% to 3.6%.

From theperspective of long-term development, the market share of domestic milk powderhas increased and the concentration of industry has become an establishedtrend. However, the shrinking market size caused by the continuous increase inthe import of infant milk powder and the decline in the birth rate is alsoworthy of attention.Trend 1 Domestic milk powder market share increase

The“Ministry of the Seven Ministries” proposed that the “Quality Improvement,Industrial Upgrading, Brand Cultivation” action plan for domestic infantformula milk powder should be vigorously implemented, and the self-sufficiencylevel of infant formula milk powder should be stable at more than 60%. Judgingfrom the current statistics, the domestic self-sufficiency rate of milk powderhas a 20% market share difference compared with this target.

Nielsen's"2018 China's infant formula market environmental insights" reportshows that the domestic milk powder market share increased from 40.7% in 2017to 43.7% in 2018, and sales growth increased from 14.5% in 2017 to 21.1%. Thegrowth rate of domestic milk powder in the mother-infant channel was 25.4%, andthe growth rate of foreign milk powder was 10.1%.

Inaddition, the growth rate of domestically produced six major milk powder brandsin 2018, Beinmei, Yili, Feihe, Junlebao, Shengyuan and Wandashan, was 48.9% inthe e-commerce channel, far exceeding the foreign milk powder. In the offlinemarket, sales of domestically produced milk powder in the online marketaccounted for 51.6% in 2018, with a growth rate of 20.2%, which is also higherthan the 6.6% growth rate of foreign milk powder.As far as the specificinfant milk powder brand is concerned, Feihe is the only domestically producedmilk powder with a revenue of 10 billion yuan. The sales in 2018 reached 11.5billion yuan; Yili's milk powder and dairy products achieved a revenue of 8.045billion yuan, an increase of 54.78. %; Junlebao milk powder sales reached 5billion yuan, of which infant milk powder production and sales exceeded 46,000tons, sales revenue increased by over 100%; Yashili milk powder product incomewas 2.442 billion yuan, an increase of 30.8%; "milk powder first share "Beinmei'srevenue was 2.491 billion yuan, down 6.38% year-on-year, but it turned lossesinto profits, and net profit increased by 103.89%.

Althoughdomestic milk powder is gaining momentum, imported milk powder still dominates.According to the data of the General Administration of Customs, from 2014 to2018, the number of imported infant milk powder and the amount of imports inChina have been increasing year by year. In 2018, the number of infant milkpowder imports in China was 324,500 tons, an increase of 9.61% year-on-year;the import value was 4.769 billion US dollars, an increase of 19.80%.

Accordingto the statistics of Euromonitor, among the top 5 market share of infant milkpowder in China from 2016 to 2018, foreign brands occupy 4 seats. Among them,Nestle (Editor's note: Wyeth is Nestlé's brand), Danone ranked first andsecond, Nestlé's market share increased from 13.9% in 2016 to 14.1% in 2018,and Danone's market share increased from 8.1% to 9.5. %. The third-ranked Feihehas increased its market share from 5.1% in 2016 to 8.6% in 2018, making it thefastest growing brand.