www.jpmorganmarkets.comAsiaPacificEquityResearch07August2019EquityRatingsandPriceTargetsMktCapPriceRatingPriceTargetCompanyTicker($mn)CCYPriceCurPrevCurEndDatePrevEndDatea2MilkCompanyLtd(ASX)A2MAU7,846.75AUD15.79OW—17.23Jun-20——a2MilkCompanyLtd(NZX)ATMNZ7,948.49NZD16.57OW—18.00Jun-20——Bellamy'sAustraliaLtdBALAU699.36AUD9.13N—9.50Jun-20——Source:Companydata,Bloomberg,J.P.Morganestimates.n/c=nochange.Allpricesasof07Aug19.ANZInfantFormulaIndustryProduct(A2,Organic),Brand,UsageandProvenancearePositives-InitiateonA2M(OW)andBAL(N)Australia,NewZealandAustralianConsumerSectorShaunCousinsAC(61-2)9003-8623shaun.r.cousins@jpmorgan.comBloombergJPMACOUSINSJ.P.MorganSecuritiesAustraliaLimitedShalinJDoshi(91-22)6157-3036shalin.doshi@jpmorgan.comJ.P.MorganSecuritiesAustraliaLimited/J.P.MorganIndiaPrivateLimitedEuropeanConsumerGoodsandBeveragesCelinePannuti,CFA(44-20)7134-7123celine.pannuti@jpmorgan.comJ.P.MorganSecuritiesplcAnkurGupta(91-22)6157-5999ankur.x.gupta@jpmorgan.comJ.P.MorganIndiaPrivateLimitedSamuelVialla(44-20)7134-8804samuel.vialla@jpmorgan.comJ.P.MorganSecuritiesplcSeepage59foranalystcertificationandimportantdisclosures,includingnon-USanalystdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.TheANZinfantformulaindustryhasbeentransformedbyChinademandwithattributesofproduct,brand,usageandprovenancekeydrivers.InitiateonA2MatOW(PTNZ$18.00)asweareconfidentoffurthermarketsharegainsassistedbyexpandingitsaddressablemarket.InitiateonBALatN(PTA$9.50)withbusinessenhancementunderpinningA$500mrevenueambition,yetexecutionriskremains.ANZinfantformulaindustry.ThedramaticriseindemandfromChinahasbeentransformational.ThepremiumisationtrendisakeydriverofdemandforANZproduct,withitsANZprovenanceandusageresultinginmarketsharegainsbyselectedANZsour...
