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clock Created with Sketch. 07/08/18
10:02
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Originally posted by 8horse
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BAL, FY18 PE would be around 25 based on the earnings guidance, its infant formula revenue would be around A$310m (profit margin ~23% probably due to imported ingredients from Europe) where A2 infant formula revenue would be around A$700m (high profit margin ~38%). For valuation, BAL PE 25 is valued at a good price, but imported ingredients and organic certificate (doesn’t seem have Chinese organic certificate for Camperdown facility) might cause a bit complication for CFDA/SAMR approval as new Chinese rules require to specify the origin of country for the milk sourced, if no Chinese organic certificate, might not be able to put Organic stamp on the tin (this might not be a big issue).
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Thanks mate. Really tempted to take a position at this stage. Could be 2 birds one stone once certification is approved but could also work the other way lol.
