The ASX’s China-focused dairy formula stocks are showing signs of recovery after a lean few months, with the majority of companies seeing share price improvement and a new business set to join them.
The sub-sector is up 6 per cent in the past month, though year-on-year is still down 15 per cent.
Today the crew gains a new member, with Australian Nutrition Dairy & Sports (ASX:AN1) to join the official list. The company was raising money in February to fund sales and marketing for its range of dairy and protein formula.
Bubs Australia (ASX:BUB) is currently leading the way, with its shares rising 42 per cent in the past month to 79c.
That is thanks to news $1.3 billion domestic Chinese infant formula business Beingmate would distribute and promote Bubs’ infant formula and organic baby food products in China.
A recovering Bellamy’s (ASX:BAL) has regained 30 per cent in that time, boosting its market cap back over the billion-dollar mark, with shares sitting at $11.27 a pop on Tuesday.
It is still down 42 per cent year-on-year, however.
Clover Corp (ASX:CLV) is another small cap punching above its weight, with its shares rising 19 per cent in the past month, after it reported a 10 per cent boost in revenue and 40 per cent boost in profit for the 2019 half-year.
Clover last year cited Chinese enthusiasm for its nutrient-rich formula additives as a key reason for a doubling in full-year profit.
Read: Dairy formula – who’s dabbling in it right now and are they exporting to China?
Wattle Health (ASX:WHA) has suffered a 15 per cent drop in the past month, down to 76c though it announced during the period a joint venture to create organic A2 nutritional dairy powder as well as finalising a Chinese supply agreement.
Other bellwether stocks, A2 Milk (ASX:A2M) and Synlait Milk (ASX:SM1), are down 1 per cent and up 2 per cent respectively.
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Here is a table of companies and share price movement. Click headings to sort
ASX code | Company | Today's Price | Market cap | 1-yr change | 1-mnth change |
---|---|---|---|---|---|
WHA | WATTLE HEALTH AUSTRALIA LTD | 0.76 | $ 145,877,360.00 | -66 | -15 |
AHF | AUSTRALIAN DAIRY NUTRITIONAL | 0.1275 | $ 33,412,244.00 | -31 | -4 |
BFC | BESTON GLOBAL FOOD CO LTD | 0.13 | $ 55,414,484.00 | -38 | -4 |
A2M | A2 MILK CO LTD | 14.03 | $ 10,046,046,208.00 | 19 | -1 |
AU8 | AUMAKE INTERNATIONAL LTD | 0.195 | $ 52,933,568.00 | -30 | 0 |
BXN | BIOXYNE LTD | 0.023 | $ 14,723,344.00 | -72 | 0 |
JAT | JATENERGY LTD | 0.058 | $ 47,909,172.00 | -74 | 2 |
SM1 | SYNLAIT MILK LTD | 10.28 | $ 1,833,451,520.00 | 29 | 2 |
AN1 | AUSTRALIAN NUTRITION & SPORTS LTD | - | - | - | - |
KTD | KEYTONE DAIRY CORP LTD | 0.375 | $ 57,000,000.00 | 3 | |
CLV | CLOVER CORP LTD | 2.11 | $ 355,140,640.00 | 130 | 19 |
BAL | BELLAMY'S AUSTRALIA LTD | 11.27 | $ 1,303,735,424.00 | -42 | 30 |
BUB | BUBS AUSTRALIA LTD | 0.79 | $ 353,646,656.00 | 10 | 42 |
LGO | LONGREACH OIL LTD | susp | $ 9,680,000.00 | susp | susp |