My understanding is some infant formula companies have multiple brands, this is now not permitted by Chinese auhorities. Also one factory can only produce a maximium of three brands.
So yes, some brands will go out of the market or be sold.
There will be plenty of established brands needing to fold up their multi- brand infant formula or is possible sell them off.
AU8 could be in a prefect position to be buying a good established brand ideally with long term dairy farmer contracts in place. There is no point having a factory buy short term diary farmer supplier contracts.
Hope mgt dont forget the need for supply by the dairy milk farmers.
AU8 Price at posting:
53.0¢ Sentiment: Hold Disclosure: Held
