The Wattle Health Australia Ltd (ASX: WHA) share price has continued its strong run and finds itself up 10% to 85.5 cents at lunch.
This brings the year-to-date return for the consumer food products company's shares to a massive 325%.
Why are its shares higher today?
This morning Wattle Health announced that it has finalised the acquisition of Certification and Accreditation Administration of People's Republic of China (CNCA) accredited Blend and Pack Pty Ltd.
Wattle Health now holds a 5% interest in the blender, packer, and distributor of infant formula products, and ensures that its infant formula range is the first brand to be nominated by Blend and Pack to apply for China Food and Drug Administration approval.
As a result, the company has commenced the process to obtain CFDA approval and expects formal approval to be announced in November 2017, subject to satisfactory compliance.
Earlier today infant formula rival a2 Milk Company Ltd (Australia) (ASX: A2M) became the first Australian company to be granted CFDA approval to allow it to continue selling in the Chinese market from January 1 2018.
Should you invest?
Whilst I think Wattle Health could have a very bright future ahead of it if it can win a share of the Chinese infant formula market, at this stage it is a touch too soon to know whether it will succeed or not.
Because of this, I intend to sit on the sidelines and wait for sales data.
