Why baby formula player Synlait Milk Ltd’s share price has risen 173% in a year

Dairy processing company and infant formula player Synlait Milk Ltd (ASX: SM1) shares were down 1.2% to $10.32 at the time of writing after hitting a 52-week high to cap off May. They’re closing the month off up 3.9% at $10.45.

Synlait today announced it has increased its 2017/18 forecast milk price from $6.50kgMS to $6.65kgMS and $7.00kgMS for the upcoming 2018/19 season.

Synlait CEO John Penno said while the price upgrade was positive, farmers should “remain cautious” because “small changes in market dynamics can have major influence on milk price”.

Synlait shares have rocketed up from just $3.82 at this time last year – a 173% gain.

Synlait has some S&P/ASX 200 stars to look up to in its fight to join the baby formula export success list, with A2 Milk Company Ltd (ASX: A2M) and Bellamy’s Australia Ltd (ASX: BAL) leading the way in the sector.

Synlait’s half-year results showed net profit for the 6 months to January 31, 2018 was $40.7 million – up from just $10.6 million in the previous corresponding period, with net debt reducing from $147 million to $50 million over the same timeframe.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. 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 Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now