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Bellamy’s share price is now up an amazing 637% in 2015: Can anything stop it?

Credit: Bellamy's

The Bellamy’s Australia Ltd (ASX: BAL) share price has posted an unbelievable rise in 2015.

Source: Yahoo! Finance

Source: Yahoo! Finance

In fact, since the infant formula maker first offered its shares on the ASX in August 2014, the shares have risen an incredible 1,221% – from $1 to $12.21.

The catalyst for Bellamy’s enormous share price rise is the insatiable demand for quality organic baby formula from China and other Asian countries. When Bellamy’s shares first hit the ASX boards last year, the company could barely keep pharmacies and supermarkets stocked up. Since then, it’s only gotten worse.

Now, hoards of ‘customers’ can be spotted scouring local supermarkets, pharmacies and online stores, seeking ‘white gold’. Given the shortage of supply, these ‘customers’, or “daigou” (translated to “buyer’s agent”) as they’re called, then on-sell the products via Chinese social media channels.

Bellamy’s, Karicare and A2 MIK FPO NZ (ASX: A2M) are the most highly sought-after brands. Here’s a screenshot I caught last month:

It’s easy to see how these ‘buyers’ agents’ are believed to make $100,000 per year.

Can Bellamy’s share price be stopped?

Bellamy’s isn’t the only company benefitting from the long-term tailwinds provided by a surging Chinese middle-class population. A2 Milk, Blackmores Limited (ASX: BKL) and Capilano Honey Ltd (ASX: CZZ) are but some of Australia’s best companies that’ll seek to tap into the demand.

With such high demand for its products, I’m not prepared to bet Bellamy’s share price will fall anytime soon, but I’m not a buyer of its shares either. I’m now looking for other ways to play into China’s rising demand for quality Australian-made products.

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Motley Fool contributor Owen Raskiewicz has a financial interest in Bellamy's Australia.

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Bellamy's Australia. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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