Ausnutria (1717.HK) Own-branded goat milk powder business with fast growing trend; nutrition business with growth potential August 14, 2019 381

PSR Recommendation: BUY Status: Initiation
Target Price: HKDHKD15.70

Investment Summary
Ausnutria has recently announced positive profit alert for 1H of FY2019. Revenue
increased by 21.9%y.o.y. and is mainly driven by the increase of 45.3% of its ownbranded
goat formula milk powder products. The percentage share of this business to
revenue increased from 35.2% to 44.9% y.o.y. The own-branded goat formula milk
powder also increased by 20.7%. The adjusted net profit increased by 63.8% y.o.y.
Ausnutria ranked the ninth in infant milk formula market in China during 2018, with a
market share of 3.9%. But it ranked the first in the imported goat milk formula with a
market share up to 62.5%. The management team`s target is to be among the top five
players in China`s overall infant milk market in the next three to five years.

About the author

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Tracy Ku
Investment Analyst

Graduated from Chinese University of Hong Kong, majoring in Economics for Bachelor Degree, and Journalism for Master Degree. Worked in financial news industry for more than four years.
Currently cover retailing, property sectors and IPOs. Good at analysis for the companies with economic policies and industry prospects.

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