ASX investors can’t get enough of Aussie milk formula exports and they sent Jatenergy rocketing after news that it’s delivered its first orders.
Shares in the energy-generator-turned-exporter to China (ASX:JAT) opened at 2.9c on Friday morning and more than tripled to reach 9.5c by the end of the day – a 327 per cent increase.
The stock cooled to 7c, but the hike was enough to get the attention of the ASX who issued a speeding ticket on Friday afternoon.
JAT maintained it was the strong Chinese demand for dairy products that was feeding investor interest.
On Monday, JAT went into a trading halt pending an announcement on Wednesday.
Estimates from the company show there was a 13 per cent increase in Chinese dairy imports in the 12 months to October 2016, to 2.4 tonnes.
In the same period, Australian dairy exports to China jumped from $550 million to $878 million, largely due to the growth in popularity of milk powder.
The excitement over powdered milk is the same that helped goat milk maker Bubs (ASX:BUB) close its share purchase plan with demand for five times the amount of stock on offer.
They sought to raise $5 million and closed on Monday with applications in excess of $28.7 million, following their proposed acquisition of NuLac foods and its dairy facilities.
In less than 12 months since their ASX debut in January, BUB has taken off from a 10c listing price to trade at 78c today.
Milk formula for the whole family was also a hit for probiotic maker Bioxyne, who topped our list of ASX-winners last week after gaining 287 per cent.
Yet JAT continues to pursue opportunities with its initial interest in energy.
“The board remain committed to sourcing a renewable energy project in Australia and is currently evaluating suitable sites in Dampier, WA,” they told shareholders.