Summary
The fund managers believe that A2 Milk Company Ltd has strong potential for growth, particularly in the Asian markets, where demand for premium dairy products is increasing. In their opinion, the company's focus on health and wellness aligns well with consumer trends, providing a solid foundation for future sales. They express confidence in A2's ability to maintain its market leadership through innovation and brand loyalty. However, some managers caution about potential risks, including regulatory challenges and supply chain issues, which could impact profitability. Overall, the consensus is that while there are risks, the long-term outlook remains positive, making A2 Milk a compelling investment opportunity.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
Commentary From The Managers
Ten Cap
31 Aug 2025
$9.53
Summary
- A2 Milk (A2M) delivered a strong FY25 result.
- Capital return was a key highlight of the results.
- Successful streamlining of its long-awaited supply chain was achieved.
- These developments strengthen the company’s operating platform.
- Reinforces Ten Cap's conviction in A2 Milk’s growth trajectory.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Become a ThesisTracker Pro Member
-
Unlock current and most recent commentary ahead of the crowd
-
Exclusive access to new insights from the investment community
-
Regular alerts to actionable insights from financial professionals
Commentary From The Managers
Ten Cap
31 Aug 2025
$9.53
- A2 Milk (A2M) delivered a strong FY25 result.
- Capital return was a key highlight of the results.
- Successful streamlining of its long-awaited supply chain was achieved.
- These developments strengthen the company’s operating platform.
- Reinforces Ten Cap's conviction in A2 Milk’s growth trajectory.
Summary
Perpetual Asset Management
30 June 2025
$8.01
- Perpetual Asset Management acknowledges that the overweight position in A2 Milk (A2M) impacted relative performance negatively over the June quarter, with a decline of 1.01%.
- Recent softer China shipment data has put pressure on A2M shares, contributing to uncertainty.
- May export figures indicated a year-on-year decline in direct shipments to China, affecting sentiment around A2M's core segment.
- Despite these challenges, brand strength, premium market positioning, and diversification strategy are seen as positive factors for A2M.
- With recent share price weakness largely reflected, long-term demand for high-quality nutritional products remains strong.
- Perpetual Asset Management continues to hold a constructive outlook on A2M's future prospects.
Summary
Antares Capital
30 June 2025
$8.01
- A2 Milk commands approximately 9% market share in China, with strong brand recognition in Tier 1 cities.
- Strategic expansion into Tier 3–4 cities via 29,000 offline mum-and-baby stores is viewed positively.
- Launch of China-label IMF with new packaging and formula aligns with local preferences and regulatory expectations.
- Impact of local IMF brands' aggressive subsidies is limited due to differing target demographics.
- Chinese parents conduct detailed research on IMF products, often testing multiple brands before settling.
- Only 30% of mothers breastfeed, with many switching to IMF after 6–9 months, driving demand for Stages 2 and 3 (73% of the market).
- Births have declined again in Q1 2025, with potential annual births falling to 6 million by 2030.
- Some consumers are trading down from premium to mid-tier brands, especially in Stage 3 IMF.
- Chinese IMF companies are initiating various promotion programs, including free samples of up to six tins.
- The Daigou channel remains but has diminished; around 10% of A2 English-label IMF is still sold this way.
- Antares Capital's view on A2 Milk has become more balanced, recognizing near-term opportunities against significant structural challenges.
- For these reasons, A2 Milk is not currently held in any of Antares Capital's portfolios.
Summary
Ten Cap
31 Mar 2025
$7.93
- Ten Cap continues to hold in A2 Milk Company Ltd due to strong market share data.
- Successful rollout of new products has positively impacted A2M's position.
- Demographic developments in China are encouraging for the company's future.
- Announcement from Hohhot regarding financial incentives for families aims to boost birth rates.
- Ten Cap views the efficacy of policy measures as a crucial indicator of broader fiscal support.
- Monitoring fiscal support closely remains a key focus for Ten Cap.
Summary
Wilson Asset Management
28 Feb 2025
$7.98
- a2 Milk Company is a global dairy company specializing in a2 protein dairy and infant milk formula products.
- Recent earnings results were strong, driven by continued strength in English-label sales and market share gains in China-label products.
- The company raised its full-year guidance, supported by increased sales of higher-margin products.
- Improved cost efficiencies and ongoing reductions in losses from its U.S. and Mataura Valley Milk businesses contributed to the positive outlook.
- a2 Milk declared its first dividend payment, indicating confidence in its financial position and future earnings trajectory.
- Despite challenges such as declining birth rates in China and issues in late-stage infant milk formula, the company is executing its turnaround strategy effectively.
- Performance in early-stage infant milk formula remains strong, supporting overall growth.
- The balance sheet is robust, with close to $1 billion in cash available for supply chain enhancements and capital management initiatives.
- Wilson Asset Management continues to hold a2 Milk as its valuation remains attractive relative to growth prospects.
Summary
Ten Cap
28 Feb 2025
$7.98
- Ten Cap strategically increased their position in A2 Milk Company.
- A2M's growth is supported by strong market share data.
- Successful new product launches have positively impacted performance.
- There are supportive birth trends in China benefiting A2M.
- Despite a challenging market for infant formula, A2M achieved an impressive 10% growth.
- Ten Cap remains optimistic about accretive supply chain investments and capital returns to shareholders.
Summary
Ten Cap
31 Jan 2025
$5.90
- A2 Milk (A2M) was added to Ten Cap's portfolio as of last month.
- Positive feedback on the launch of the new premium genesis product.
- Continued consolidation in the Chinese market.
- Company maintains a strong cash balance of $1bn.
- More flexible supplier contracts enhance business options.
- Provides optionality for capital returns and EPS-accretive investments.
- Ten Cap continues to hold due to the ongoing strength in trading performance.
Summary
Milford Asset Management
31 May 2024
$7.08
- A2 Milk has seen a notable increase of 14.9% in its performance.
- Milford Asset Management recognizes A2M's strong execution despite a challenging market.
- A2M's brand health metrics remain solid.
- The company has achieved market share gains across various distribution channels.
- Management expresses optimism regarding a recovery in China's birth rates.
Summary
Wilson Asset Management
28 Feb 2024
$5.77
- A2 Milk Company specializes in milk products containing only the A2 protein type.
- In February, the company announced its FY2024 half-year results, which exceeded market expectations.
- Reported a 3.7% revenue growth and 5.0% growth in EBITDA.
- Increased market share in China’s infant milk formula market, despite a decline in the birth rate.
- Declared an increased FY2024 revenue growth guidance from low to low-to-mid single-digit percent.
- Upcoming product launches, including a2 Gentle Gold and new infant milk formulas, are expected to drive future revenue growth.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in A2 Milk Company Ltd (ASX:A2M)?
Fund managers including Ten Cap, Milford Asset Management, Antares Capital, Perpetual Asset Management and Wilson Asset Management have invested in A2 Milk Company Ltd (ASX:A2M).
Why have investment managers invested in A2 Milk Company Ltd (ASX:A2M)?
Fund managers have invested in A2 Milk Company Ltd (A2M) for several compelling reasons. Firstly, the company has demonstrated strong trading performance, evidenced by positive feedback on its premium product launches and a robust market share, particularly in China where it commands approximately 9% of the market. The successful rollout of new products and strategic expansion into lower-tier cities further enhance its growth potential. Additionally, A2M's strong financial position, highlighted by a cash balance of around $1 billion, provides flexibility for capital returns and investments that can drive earnings per share (EPS) growth. Despite challenges such as declining birth rates in China and competitive pressures from local brands, the company's brand strength and premium positioning in the infant milk formula (IMF) market remain key advantages. Fund managers view A2M as well-positioned to navigate market fluctuations while capitalizing on long-term demand for high-quality nutritional products, making it an attractive investment opportunity.
What happened to A2 Milk Company Ltd (ASX:A2M)?
In August 2025, Ten Cap highlighted A2 Milk Company Ltd (A2M) in their Monthly Report, noting a robust FY25 performance marked by a capital return and the successful optimization of its long-awaited supply chain. With shares priced around $9.53, these advancements not only bolster A2 Milk's operational framework but also enhance confidence in its future growth trajectory.