Got Milk: Only 6 of the ASX’s baby bottle crew are smiling so far in 2019
Food & Agriculture
Food & Agriculture
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Only six stocks of the listed ASX companies with exposure to the infant formula market — and just three small caps — have gained value since late November.
Stockhead has examined the news and share price movements of the 15 companies that make up what we like to call the baby bottle crew since we last checked in on November 21.
It was a similar picture then, too, with just five of the stocks up in the previous three months.
The sector was extremely hot throughout 2018 — in late July, the subsector was averaging 170 per cent one-year returns.
That same group of companies has lost on average 6pc of its value in the last six weeks.
In positive signs however, the three biggest members of the field and barometers for the industry are all up since late November.
Synlait Milk (ASX:SM1), A2 Milk (ASX:A2M) and Bellamy’s Australia (ASX:BAL) are up 13pc, 13pc and 4pc respectively.
Wattle Health (ASX:WHA) joined them on news this morning that its manufacturer Blend and Pack had renewed its Certification and Accreditation of the Peoples Republic of China (CNCA) approval for the manufacture of infant formula.
The stock has risen 5pc since we last checked in, eking ever close to the $1 mark at 98c.
But the company continues to wait for State Administration of Market Regulation (SAMR) accreditation, which it applied for in October 2017.
Jatenergy (ASX:JAT) is also up 5pc, to 7.9c, after it signed a distribution agreement with Ocker Products whereby Ocker has exclusive distribution rights to distribute 900g tins of Jatenergy’s Golden Koala full cream milk powder in China for an initial period of five years.
Longtable Group (ASX:LON) is also up ever so slightly, 3pc to 32c a share.
At the other end of the table, Bioxyne (ASX:BXN), which targeted the Southeast Asia baby formula market back in December 2017, has fallen 25 per cent to 3c.
Beston Global Food (ASX:BFC) $12.6 million full-year loss for 2018, has fallen 19 per cent to 15c since late November.
The ASX’s newest milk smallcap Keytone Dairy (ASX:KTD) produced a massive upswing in revenue — but an even bigger widening in its half year loss.
That’s partly responsible for the company’s shares drifting 12 per cent down to 40c.
Its revenue lifted by 116 per cent to touch $1.4m, following “significant” sales growth thanks to investments the company has been able to make following its $15m July IPO.
But the company also plunged into the red with a 1,736 per cent slide to a $1.5m loss, from a $96,812 profit in the same period last year.
And in case you were wondering how Longreach Oil’s (ASX:LGO) move into the infant formula market is going, the former oil and gas explorer is still in trading suspension.
The only official movement from the company since its 2018 annual report were the adoptions of remuneration report and the re-election of Mr Q Roux, both carried on a show of hands.
Here is a table of companies and share price movement. Click headings to sort
|ASX code||Name||Last price||Nov 21 price||% change||Market Cap|
|HRL||HRL HOLDINGS LTD||0.091||0.165||-45%||44,899,640|
|BFC||BESTON GLOBAL FOOD CO LTD||0.15||0.185||-19%||64,280,800|
|KTD||KEYTONE DAIRY CORP LTD||0.4||0.455||-12%||61,500,000|
|BUB||BUBS AUSTRALIA LTD||0.44||0.47||-6%||198,677,648|
|AU8||AUMAKE INTERNATIONAL LTD||0.24||0.255||-6%||65,149,008|
|CLV||CLOVER CORP LTD||1.3||1.37||-5%||216,388,016|
|AHF||AUSTRALIAN DAIRY NUTRITIONAL||0.12||0.125||-4%||32,075,754|
|LON||LONGTABLE GROUP LTD||0.32||0.31||3%||39,271,052|
|BAL||BELLAMY'S AUSTRALIA LTD||7.51||7.21||4%||836,658,048|
|WHA||WATTLE HEALTH AUSTRALIA LTD||0.98||0.93||5%||177,970,368|
|SM1||SYNLAIT MILK LTD||8.68||7.7||13%||1,557,448,064|
|A2M||A2 MILK CO LTD||10.58||9.35||13%||7,700,675,584|
|LGO||LONGREACH OIL LTD||n/a||n/a||n/a||n/a|