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SML - Synlait Milk News Story

NZD3.73 -0.0  -0.8%

Last Trade - 30/07/21

Sector
Consumer Defensives
Size
Mid Cap
Market Cap £409.3m
Enterprise Value £659.5m
Revenue £706.2m
Position in Universe 341st / 1946

BUZZ-More kids please: a2 Milk, Synlait set for weekly milestones after China changes policy

Fri 4th June, 2021 3:12am
** a2 Milk Company  ATM.NZ  and Synlait Milk  SML.NZ  are
set for their best week in months after China, a top market,
moves toward a three-child policy 
    ** a2 Milk is set to gain ~3.7% in its best weekly showing
since early-March, a significant turn for the dairy company that
has lost more than half its value over the past six months
    ** Synlait, in which a2 is a shareholder and its top
customer, is heading for its best week since early April last
year, climbing more than 10%
    ** While both companies have struggled with supply
disruptions caused by the pandemic to their key market, China,
a2 has been worst hit due to its reliance on an informal supply
channel  urn:newsml:reuters.com:*:nL1N2MW0HS
    ** a2 Milk suffered six straight months of sharp declines up
to May, and flagged last month that declining birth rates in
China were also a concern
    ** What changed this week was Beijing's decision to let
married Chinese couples have up to three children, a major shift
from the existing limit of two  urn:newsml:reuters.com:*:nL2N2NI0CX
    ** a2 Milk, however, dipped 0.3% on Friday, while Synlait
rose 2.5%; the broader New Zealand market  .NZ50  was up 0.3%

 (Reporting by Nikhil Kurian Nainan)
 ((NikhilKurian.Nainan@thomsonreuters.com; Twitter:
@NikhilKurianN))
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