Wattle Health Australia Ltd (ASX: WHA)

 Received Approval for general sale in China for product range: Wattle Health Australia Ltd (ASX: WHA) specializes in production of dairy products and focuses on infant formula and dried dairy goods. WHA stock surged 8.13% on July 25, 2018 after the company received approval for general sale in China of its one-kilogram retail bag of pure Australian grass-fed milk powder.
 
This new launch is expected to further increase WHA’s brand awareness in the highly lucrative Chinese market and generate additional sales across its extensive distribution network in China. Further, the launch will also assist in sales of WHA’s infant formula range in China, once it obtains the required license from State Administration for Market Regulation. On the other hand, WHA will be presenting its entire range of products at one of China’s largest trade fair for child, baby and maternity products, Shanghai International Children Baby and Maternity Products Industry Expo (CBME) from July 25 to 27. This is done for both general trade and cross border e-commerce sales.
 
The group has also appointed Georgia Sotiropoulos as Executive Director in the month of July 2018 to lead WHA through its next phase of growth and expansion at domestic and international level. Under its kitty of relationships, Wattle Health Australia recently bagged a 12 month supply agreement with Vasudevan and Sons Exim Private Limited (VSEP) for supplying WHA’s natural baby food range in India while VSEP has committed to minimum volumes for the term of the Supply Agreement representing revenue of approximately $1.5 million AUD. VSEP had given an initial product order to WHA in January 2018. VSEP is said to be distributing WHA’s natural baby food range in one state in India at the initial level with further roll out across other states to follow in some time. The group also has a long-term supply agreement with Shandong of China for supply of cow infant formula range.
Meanwhile, WHA stock has fallen 36.92% in three months as on July 24, 2018. Based on the foregoing and in view of trading conditions, we give a “Speculative Buy” recommendation on the stock at the current price of $ 1.13.

 
Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.