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SML - Synlait Milk News Story

NZD3.73 -0.0  -0.8%

Last Trade - 30/07/21

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

BUZZ-NZ's infant formula makers Synlait, a2 Milk jump after China's three-child policy

Tue 1st June, 2021 1:40am
** China-focused baby food makers Synlait Milk  SML.NZ  and
a2 Milk  ATM.NZ  jump 5% and 2.4%, respectively, to be the top
gainers on the New Zealand benchmark  .NZ50 
    ** China on Monday relaxed the cap to allow married couples
to have up to three children from the existing limit of two 
    ** Move comes after recent data showed a dramatic decline in
births in the world's most populous country*:nL2N2NI0CX
    ** Brokerage Jefferies, addressing Chinese markets, says the
policy's effect is too early to conclude but expects infant
formula brands and diaper makers to benefit first
    ** We expect the three-child policy to become a new driver
for newborns, with a potential to increase it by 2%-7% -
    ** a2 Milk and UK-based Reckitt  RKT.L  had previously
flagged a hit due to a drop in China's birth rate*:nFWN2KU09B*:nL1N2MW0HS
    ** SML's stock also gets boost from Dunsandel facility
resuming ops after it was closed due to flooding at Canterbury*:nFWN2NI0HZ
    ** SML and ATM, both, downgraded their earnings forecast in
May, resulting in the latter marking its worst monthly
performance in 12 years*:nL3N2NI155

 (Reporting by Anushka Trivedi in Bengaluru)
 ((; +918061823241;))
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