Will A2 Milk FPO NZ be the Bellamy’s Australia Ltd of 2016?

Credit: Benjamin Horn

The A2 Milk FPO NZ (ASX: A2M) share price is up 60% in the past two trading days.

Source: Yahoo! Finance

Source: Yahoo! Finance

In fact, over the past three months, shares of A2 Milk have risen an impressive 148%. Meanwhile, the Bellamy’s share price, which is up nearly 400% since the beginning of the year, has continued to rage higher.

Since launching its shares on market slightly more than 12 months ago, Bellamy’s is now up almost 920%, with the organic infant formula maker’s share price hitting an all-time high of $14.65 this morning.

Is 2016 the year of A2 Milk Limited?

Bellamy’s rivals, including A2 Milk, recognise the enormous potential in China’s infant formula market and are making inroads. Earlier this year, the a2 Milk range expanded into Platinum infant formula, and its success thus far has been outstanding.

Last week, the company’s share price surged more than 24% in a single day after it announced its infant formula products would enable the company to exceed profit expectations by more than 50%.

The a2 Milk Company CEO and Managing director, Geoffrey Babidge, said, “The Company has recently increased the supply of a2 Platinum® infant formula to our customers however we continue to experience a level of out of stocks on shelf.”

He added, “The strong trading performance advised today provides further evidence of the increasing appeal of the a2 Platinum® brand in Australia and China and the growth potential in additional markets in the future.”

While investors are reminded to always conduct their own due diligence prior to making any investment, if the a2 Milk Company continues to see such strong levels of demand for its products leading into 2016, it could be another very good year for shareholders.

In my opinion, a2 Milk Company shares could be a good buy today, but The Motley Fool has just issued a brand-new report, complete with all the details on our expert analysts' #1 dividend stock for 2016 - and I think it is a GREAT buy! Simply, click here now for your FREE copy, including the name and code! No credit card details or payment required.

Motley Fool writer/analyst Owen Raszkiewicz 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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