Got Milk: Only one infant formula stock stood out in January
Food & Agriculture
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Following a solid December, January saw infant formula stocks retreat — but there was one stock which stood out.
In a cruel twist of fate, it is not even a pure infant formula play but an infant formula supplement maker.
Bioxyne (ASX:BXN) gained 21 per cent in the last month. It makes supplements for infant formula (proTract) which keeps babies’ gastrointestinal system healthy.
The one other ASX stock that advanced is the largest stock of the ‘baby bottle crew’, A2 Milk (ASX:A2M). A2’s only major news this month was some leadership changes. It replaced its chief financial and technical officers.
Among January’s laggards was the industry’s newest stock on the block, Happy Valley Nutrition (ASX:HVM), which hit the skids on debut but has recovered slightly.
Unlike its immediate predecessor, goat-milk focused Nuchev (ASX:NUC), which listed in December, Happy Valley does not yet have a facility to export milk from. But it believes it now has enough cash in the bank for the next 12 months.
The biggest laggard was AuMake (ASX:AU8) which sells infant formula, among other goods, at daigou stores. It plunged at the end of last month when it admitted it was being hit by coronavirus fears, but could not yet measure the specific impact.
| Code | Name | Price (I) | 1 Year % Return | 1 Month % Return | Market Cap |
|---|---|---|---|---|---|
| BXN | BIOXYNE LTD | 0.017 | -32 | 21 | $10.9M |
| A2M | A2 MILK CO LTD | 14.16 | 16 | 1 | $10.7B |
| HRL | HRL HOLDINGS LTD | 0.12 | 46 | 0 | $61.7M |
| JAT | JATENERGY LTD | 0.049 | -28 | 0 | $46.7M |
| CLV | CLOVER CORP LTD | 2.54 | 91 | -2 | $442.4M |
| KTD | KEYTONE DAIRY CORP LTD | 0.375 | -15 | -3 | $85.0M |
| LON | LONGTABLE GROUP LTD | 0.16 | -45 | -3 | $33.2M |
| SM1 | SYNLAIT MILK LTD | 8.35 | -5 | -4 | $1.5B |
| NUC | NUCHEV LTD | 3.43 | 35 | -8 | $157.5M |
| AHF | AUSTRALIAN DAIRY NUTRITIONAL | 0.095 | -30 | -10 | $35.6M |
| BFC | BESTON GLOBAL FOOD CO LTD | 0.083 | -39 | -11 | $39.5M |
| BUB | BUBS AUSTRALIA LTD | 0.725 | 48 | -26 | $453.8M |
| AU8 | AUMAKE INTERNATIONAL LTD | 0.084 | -59 | -33 | $30.3M |
| HVM | HAPPY VALLEY NUTRITION LTD | 0.18 | -10 | -10 | $41.4M |
| WHA | WATTLE HEALTH AUSTRALIA LTD | 0.45 | -44 | 0 | $98.2M |
Yearly winners
While Clover Corp (ASX:CLV) stood still in January, it is the largest yearly gainer, up 91 per cent in 12 months.
Only five other stocks are in the green on a yearly basis.
Immediately following Clover is Bubs Australia (ASX:BUB) and HRL Holdings (ASX:HRL), both of which have gained over 45 per cent.
While Bubs is an infant formula exporter (which is not just focused on China), HRL is aiming to start an analytical testing service for the New Zealand dairy industry.
Nuchev (ASX:NUC) may only have been listed less than two months but it has earned fourth place, gaining 35 per cent.
And A2 Milk (ASX:A2M) is up 15 per cent in a year.
READ MORE: Infant formula stocks guide: Here’s everything you need to know
