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The ASX’s China-focused dairy formula stocks are showing signs of recovery after a lean few months, with the majority of companies seeing share price improvement and a new business set to join them.
The sub-sector is up 6 per cent in the past month, though year-on-year is still down 15 per cent.
Today the crew gains a new member, with Australian Nutrition Dairy & Sports (ASX:AN1) to join the official list. The company was raising money in February to fund sales and marketing for its range of dairy and protein formula.
Bubs Australia (ASX:BUB) is currently leading the way, with its shares rising 42 per cent in the past month to 79c.
That is thanks to news $1.3 billion domestic Chinese infant formula business Beingmate would distribute and promote Bubs’ infant formula and organic baby food products in China.
A recovering Bellamy’s (ASX:BAL) has regained 30 per cent in that time, boosting its market cap back over the billion-dollar mark, with shares sitting at $11.27 a pop on Tuesday.
It is still down 42 per cent year-on-year, however.
Clover Corp (ASX:CLV) is another small cap punching above its weight, with its shares rising 19 per cent in the past month, after it reported a 10 per cent boost in revenue and 40 per cent boost in profit for the 2019 half-year.
Clover last year cited Chinese enthusiasm for its nutrient-rich formula additives as a key reason for a doubling in full-year profit.
Wattle Health (ASX:WHA) has suffered a 15 per cent drop in the past month, down to 76c though it announced during the period a joint venture to create organic A2 nutritional dairy powder as well as finalising a Chinese supply agreement.
Other bellwether stocks, A2 Milk (ASX:A2M) and Synlait Milk (ASX:SM1), are down 1 per cent and up 2 per cent respectively.
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Here is a table of companies and share price movement. Click headings to sort
|ASX code||Company||Today's Price||Market cap||1-yr change||1-mnth change|
|WHA||WATTLE HEALTH AUSTRALIA LTD||0.76||$ 145,877,360.00||-66||-15|
|AHF||AUSTRALIAN DAIRY NUTRITIONAL||0.1275||$ 33,412,244.00||-31||-4|
|BFC||BESTON GLOBAL FOOD CO LTD||0.13||$ 55,414,484.00||-38||-4|
|A2M||A2 MILK CO LTD||14.03||$ 10,046,046,208.00||19||-1|
|AU8||AUMAKE INTERNATIONAL LTD||0.195||$ 52,933,568.00||-30||0|
|BXN||BIOXYNE LTD||0.023||$ 14,723,344.00||-72||0|
|JAT||JATENERGY LTD||0.058||$ 47,909,172.00||-74||2|
|SM1||SYNLAIT MILK LTD||10.28||$ 1,833,451,520.00||29||2|
|AN1||AUSTRALIAN NUTRITION & SPORTS LTD||-||-||-||-|
|KTD||KEYTONE DAIRY CORP LTD||0.375||$ 57,000,000.00||3|
|CLV||CLOVER CORP LTD||2.11||$ 355,140,640.00||130||19|
|BAL||BELLAMY'S AUSTRALIA LTD||11.27||$ 1,303,735,424.00||-42||30|
|BUB||BUBS AUSTRALIA LTD||0.79||$ 353,646,656.00||10||42|
|LGO||LONGREACH OIL LTD||susp||$ 9,680,000.00||susp||susp|