Vitasoy finds favour amid milk scandal
Shares in soya-based beverage maker Vitasoy International Holdings advanced as much as 17.61 per cent yesterday as investors bet the company would benefit from the tainted milk scandal.
'Vitasoy used to be a stable yield-player in the market,' said an analyst. 'But apparently investors think it will benefit from the milk contamination scandal as consumers, particularly Hong Kong consumers, may switch to soyabean milk made in Hong Kong.'
Some Hong Kong consumers are buying more soya milk after products from the mainland's top dairy producers were found to contain the chemical melamine.
Mainland outlets of coffee chain Starbucks have removed milk coffees from menus after liquid milk from supplier China Mengniu Dairy tested positive for melamine. It advised customers to use soya milk as an alternative.
The move is expected to affect more than 200 of Starbucks' 300 mainland outlets.
Vitasoy's stock surged to HK$4.14 before closing up 13.35 per cent at HK$3.99 yesterday, compared with a 1.58 per cent increase in the Hang Seng Index.
However, analysts said since Vitasoy had a small market capitalisation with a low trading volume, it was hard to tell if the upward trend would be sustainable.