Today's trade, page-7

"2-2.2 is the fair value for this stock now as the profit falls in the lower ranger of IPO."

What you say is quite logical, except that the market right now is responding to the imminent release of the new Australian made Devondale Natrastart infant formula, so is factoring that in and adjusting the price upwards. People can see that MG will successfully leverage off the huge popularity of their powdered milk in China. The infant formula will probably first of all fly off the shelves in Australia as the daigous, the grey importers, buy it up and ship it to China to get first mover advantage before factory shipments start arriving there by sea in about a month from now.
The current share price has nothing whatever to do with the new Koroit factory announcement. MG already makes infant formula elsewhere, previously only under contract for other brands, and has been for some time.

This was written about nine months ago but is still valid:
"China has a voracious appetite for baby formula. Limited maternity-leave policies have led millions of working Chinese mothers to use baby formula even more than Aussie mums, and the country's nightmarish pollution makes imported formula from clean and green places like Tasmania a hot commodity.
New Zealand dairy giant Fonterra estimates China's baby formula market to already be a $17 billion industry, and estimates that the market could hit over $30 billion within the next three years – that's more than 20 times bigger than the size of the Aussie market."