AuMake, the retailer targeting “daigou” and Chinese tourists, has joined the ASX infant formula crew after signing up a Kiwi dairy producer to develop an inhouse range of milk powder formula products.

China-focused formula stocks have been a popular theme among investors in recent years, with stocks on average up 170 per cent year-on-year.

AuMake joins other ASX china-focused baby formula makes such as Jatenergy, Bellamy’s, A2 Milk, Synlait, Bubs, Clover, Wattle and newly listed Keytone Dairy.

AuMake jumped 25 per cent to an intraday high of 33c this morning — quadruple its listing price last year, but a long way short of its 84c high in December. The stock closed at 32c.

Pure Nutrition — part-owned by New Zealand’s second biggest dairy co-operative Westland Milk Products — will initially develop milk powder with A1 and A2 proteins targeted to the demands of Chinese customers. A2 milk is said to be healthier than A1.

It’s also planning organic and goat milk powder formula products.

Initial annual target volumes are one million A1 products and 600,000 A2 products.

“We have identified the ageing population of China to be of significant interest with 241 million people over the age of 60, which is forecast to grow to 487 million by 2050,” said Aumake chairman Keong Chan.

AuMake’s shares (ASX:AU8) over the past 12 months.

A Pure Nutrition spokesperson said they approached AuMake “as the leader in the daigou and Chinese tourist market in Australia and it became clear there was an opportunity for us to do something different and unique to cater to the Chinese market”.

Stockhead reported last month that AuMake had grown cash receipts by 35 per cent and nearly halved its cash-burn rate in the June quarter.

The deal means AuMake can bypass China’s regulatory body (State Administration for Market Regulation or SAMR).

The A1 products are scheduled to launch in October-November this year, followed by the A2 product range in April-May 2019.