HY Results 2019, page-215

Morningstar AU update: https://www.morningstar.com.au/stocks/article/a2-milk-profit-lifts-50pc-on-china-growth/181653?utm_source=Twitter&utm_medium=organic%20social&utm_campaign=Feb%2020&utm_content=A2M

Highlights of comments from analyst Adam Fleck:

Morningstar analyst Adam Fleck applauded the result, saying the company had exceeded expectations. The company currently carries a fair value estimate of $12.90."They're already at 5.7 per cent of market share in China - we anticipated they would have finished the year at 5.9 per cent. So they are ahead of schedule," Fleck said.

"Infant formula is 80 per cent of revenue - and sales are up 45 per cent. They're gaining share in China in infant formula faster than the market would have expected."We expect them to go from 5 to 15 per cent in the next 10 years, but the trajectory has taken off faster than expected.

"Their new ecommerce business is being well managed. They’re expanding distribution into mother and baby stores in China. They’ve gone from 10,000 to 12,500 stores, and they’ve done a good job at navigating the new regulatory challenges - frankly, competition doesn’t seem to be slowing them down."