There still lots of bad news for baby fomula company.
1.New China E-commerce law will efect on 1 Jan 2019,how about daigou in future,nobody can answer the question.
2. Grace period for Cross Bord Ecommerce will expire in 31 Dec 2018,until now China have not decided to extend the another grace period or not.If Cross Bord Ecommerce shut down,the baby fomula which have not approved by SMAR (include BAL) will become illegal product and cant sell in china anymore
3.BAL's SMAR licence is still progressing. In 15 October there are another two Chinese company have received their SMAR licence.Looks like Chinese brand stil have priority.I expect BAL's SMAR licence will still progressing to 2019.
but compare with other baby formula company list at ASX such as A2M,BUB,WHA,JAT,AHF,
The market capital for BAL now just 850M,revenue are 320M,strong cash flow with more than 80M on hand and 0 debt.
$7.5 for BALat leas is very safe position compare with A2M,BUB,WHA to get in. Although bal's sales is still steady and we cant expect to exceed A2M.But $7.5/ share with 850M market and BAL now plan to upgrade their formulatin with key ingredient (eg DHA,ARA,GOS),I think this is will attract some Chineses,hope shareprice can jump to 8.5-9,if bal can receive SMAR licence,target is $10 or more.
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