The A2 Milk Company Ltd (A2M.AX): Good start to the week with two China label product registrations being successfully transferred to a2

Research evidence excerpt

The A2 Milk Company Ltd (A2M.AX): Good start to the week with two China label product registrations being successfully transferred to a2

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21 Jun 2026 21:07:56 ET │ 12 pages

The A2 Milk Company Ltd (A2M.AX)

Good start to the week with two China label product registrations being

successfully transferred to a2

CITI’S TAKE Neutral

While the SAMR approval to transition two China label product Price (19 Jun 26 16:00) A$6.71

registrations is broadly within Neutral-rated a2’s expected timeline of up Target price A$6.70

to 12 months from August 2025, we consider the approval to be

Expected share price return -0.1% particularly positive given i) there is always some degree of regulatory

uncertainty until these types of approvals come through, and ii) it unlocks Expected dividend yield 2.3%

a material special dividend. Expected total return 2.2%

Market Cap A$4,868M

What do the two registrations mean? The transition of these two infant formula US$3,414M

registrations i) brings the branding from existing Bellamy’s and Mengniu formulations

to a2, ii) should provide a2 a tailwind to grow its longer-term market share, as it can

contest the market with more products, iii) reduces the reliance on the underlying

market (i.e. birth rate) via additional products, iv) might help a2 optimise the way it Food & Beverage Team

serves the trade and v) helps de-risk a2’s China label from Synlait, where suboptimal

Sam TeegerACmanufacturing performance has been a contributing factor to a2’s supply

constraints. We would think it is unlikely that these products are launched prior to +61-2-8225-4319

Singles’ Day. sam.teeger@citi.com

Eileen Li

SAMR approval due next year. When SAMR registration renewal for these two

products are due in July 2027, we expect a2 to reformulate and upgrade these