It certainly has been an unforgettable year for owners of infant formula shares.
This group of shares, led by A2 Milk Company Ltd (ASX: A2M), finished the year with significant gains.
Here's how they fared in 2017:
- The A2 Milk Company Ltd share price ended the year with a gain of 261%
- The Bellamy's Australia Ltd (ASX: BAL) share price finished with a gain of 103% based on the price its shares opened at on January 11 following its suspension.
- The Bubs Australia Ltd (ASX: BUB) share price put on a gain of 670% for the year after hitting the ASX boards at 10 cents per share early in 2017.
- The Wattle Health Australia Ltd (ASX: WHA) share price finished the year 815% higher than its 20 cents per share listing price in March.
What's next?
Whilst it is unlikely that 2018 will provide investors with as strong gains as this, I do believe that these companies are positioned well to profit from rising demand for Australian/New Zealand infant formula in China.
My pick of the group continues to be a2 Milk. I believe the brand's reputation in China, regulation changes, its distribution network, and strong management team have placed it perfectly to capture even more market share in 2018.
This could make it well worth considering as an investment even though its shares trade at a significant premium over the market average today.
