Dairy formula stocks stable after Bellamy’s rises on China regulatory approval
Food & Agriculture
Food & Agriculture
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The ASX’s dairy formula sector is stable overall following news earlier this week that bellwether stock Bellamy’s Australia (ASX:BAL) had secured a crucial approval from Chinese regulatory bodies for one of its products.
Bellamy’s gained 16 per cent on Wednesday to $11.12 a share upon revealing China’s State Administration for Market Regulation (SAMR) had released a series of approvals covering a new Bellamy’s product to be produced in Victoria.
There are 13 other companies listed on the ASX dabbling in dairy formula with a focus on China, and the mini-sector was up 1 per cent compared with a week ago. (Bellamy’s has fallen 5 per cent today, to a low of $10.55.)
Up-and-coming stock Bubs Australia (ASX:BUB) is up 13 per cent in the past week to 98c, though that is likely due to the company’s own impressive newsflow of late.
In the past fortnight Bubs has signed a deal to sell its products in gigantic pharmacy chain Chemist Warehouse stores nationally, as well as completing a full acquisition of the company that manufactures its products.
Big stock A2 Milk (ASX:A2M) is up 6pc while another up-and-comer Wattle Health (ASX:WHA) is up 4pc.
AuMake International (ASX:AU8) and Australian Dairy Nutritionals (ASX:AHF) have both fallen 6pc. The latter has been making waves this month after diving headfirst into the milk powder game.
Bellamy’s is still awaiting SAMR approval to produce its range of organic formula at Camperdown Powder, but says the latest approval forms part of its strategy to “build out a tiered-product portfolio and penetrate the China offline channel”.
Here’s a table of dairy formula stocks in the past week, click headings to sort:
|ASX code||Company||Price last Fri||Price today||% change||Market cap|
|BAL||BELLAMY'S AUSTRALIA LTD||11.12||10.7||-4%||$ 1,260,655,488|
|BUB||BUBS AUSTRALIA LTD||0.87||0.98||13%||$ 495,875,328|
|A2M||A2 MILK CO LTD||14.65||15.6||6%||$ 11,376,209,920|
|WHA||WATTLE HEALTH AUSTRALIA LTD||0.73||0.76||4%||$ 145,877,360|
|SM1||SYNLAIT MILK LTD||9.94||10.01||1%||$ 1,794,022,528|
|HRL||HRL HOLDINGS LTD||0.1||0.1||0||$ 51,807,276|
|LON||LONGTABLE GROUP LTD||0.18||0.18||0||$ 36,387,412|
|BXN||BIOXYNE LTD||0.02||0.02||0||$ 12,802,908|
|JAT||JATENERGY LTD||0.06||0.06||0||$ 45,513,712|
|BFC||BESTON GLOBAL FOOD CO LTD||0.14||0.14||0||$ 59,847,644|
|CLV||CLOVER CORP LTD||2.05||2.04||-1%||$ 335,318,848|
|AU8||AUMAKE INTERNATIONAL LTD||0.17||0.16||-6%||$ 46,147,216|
|AHF||AUSTRALIAN DAIRY NUTRITIONAL||0.16||0.15||-6%||$ 40,094,692|
|KTD||KEYTONE DAIRY CORP LTD||0.34||0.34||0||$ 50,250,000|