The stock value for The a2 Milk Company Ltd [NZX:ATM] has soared by 3.25% today.

The company exclusively owns and licences intellectual property for the production of a2 dairy products, which has proven wildly popular with Chinese consumers.

a2 has a strong presence on both the Australian and New Zealand stock exchanges. At the time of writing, the company has a market capitalisation of $11.92 billion and the share price sits at $16.210.

Why has the [NZX:ATM] share price increased today?

Feverish anticipation is building in the lead-up to a2 Milk’s earnings announcement on Wednesday.

Market sentiment has been buoyed by favourable reports of strong growth in the Chinese marketplace, as well as an uptick in sales volume.

In addition, the poor performance by Fonterra Co-operative Group Limited [NZX FCG] — which reported a net loss of up to $675m this year — has only increased the attractiveness of a2 Milk.

Investors are taking heed of these bullish signals.

Where could a2 Milk go from here?

The outlook for [NZX:ATM] is positive for the immediate future.

However, certain export-driven risk factors still remain, particularly in light of the escalating trade war between China and the United States.

Regards,

John Ling,
Contributor, WealthMorning.com