A2M 3.86% $6.72 the a2 milk company limited

I am a shareholder of A2M since 2017 with a small position and...

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    I am a shareholder of A2M since 2017 with a small position and have never done really intensive DD on it. What I learned is that their latest half year report was well received by the market due to positive revenue-surprises. I had a quick look into the report and it doesn't look bad imo. Profitability in relation to invested capital (taking into account the huge cash-pile) does look good. But what concerns me is whether their suppy is secured. I learned that the majority of the supply for Infant milk is outsourced to Synlait - a company A2M is a 20 % shareholder of. They paid approx 280 m AUD for their stake Synlait seems to be in serious financial problems and insolvency is a concern. A2M did huge write-offs in their books on the Synlait-stake which lead to a charge of around 30 m AUD in the HY-report to write down the Syanlait-asset to appro 40 m AUD. I also learned that they aquired a 75% stake in a milk-supply-company called Mataura to bring supplies inhouse. my question is:

    1. Will Mataura be able to supply the Infant milk-segment or parts of it ?
    2. What happens when Synlait goes out of business - will A2M run out of supplies ?

    Good profitability does not help if A2M loses the necessary supplies. I walked through their 2023 yearly report but didn't find any valuable information regarding this. 150 pages ob blabla and no word on this - imo - most interesting questions. Can anyone help me ?
 
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Last
$6.72
Change
-0.270(3.86%)
Mkt cap ! $4.858B
Open High Low Value Volume
$6.96 $6.98 $6.63 $20.41M 3.023M

Buyers (Bids)

No. Vol. Price($)
4 50927 $6.70
 

Sellers (Offers)

Price($) Vol. No.
$6.72 11848 3
View Market Depth
Last trade - 16.10pm 17/06/2024 (20 minute delay) ?
Last
$6.67
  Change
-0.270 ( 4.62 %)
Open High Low Volume
$6.97 $6.98 $6.63 1304757
Last updated 15.59pm 17/06/2024 ?
A2M (ASX) Chart
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