A2M Valuation, page-7

Really don't understand this post. Apart from the reach and cost economy the new deal gives A2 (and remember its a deal on their terms), you also need to consider the following which hasn't properly unraveled yet:

1. The relaxing of the one child policy in China is only two years old. population growth in China is expected to increase year on year by more that 10%
2. Breast feeding isn't a cultural norm in China. They crave premium product.
3. The broader South East Asia market is about to explode as poorer countries like Vietnam and Indonesia start to industrialise. More women at work equals more requirements for infant formula. Remember at this stage these countries don't have paid parental leave etc etc so Formula is the answer.
4. A2 has yet to fully exploit the region. Whilst the further expansion in China adding "only 100m" to the bottom line (assume you mean NPAT) thats a good thing. I don't want to see A2 solely reliant on China. But I also think you are being conservative with that figure.

My only concern, and its a valid concern. Building a factory in China......don't do it. Isn't this why the brand is so popular. Unless the Chinese government have stipulated this as part of the deal. Then of course it should apply to all?

My thoughts FWIW