Shares in Bellamy’s Australia have hit their lowest level since January after Goldman Sachs revised down earnings expectations for the infant formula maker on worries about feared regulatory delays in China.

Bellamy’s shares ended Thursday almost 10 per cent lower at $12.77 after Goldman Sachs analysts said tougher competition, and expected delays in regulatory approval for the company’s China-labelled product could have an impact on earnings out to 2020.

Goldman Sachs said delays in the rollout of new, higher-margin products, meaning they won’t be sold until the second half of financial year 2019, would affect earnings.

The analysts said industry sources had suggested new regulatory approval could be delayed because of a change in the formulation of Bellamy’s new product and the merger of regulator the China Food and Drug Administration with other departments.

They also mentioned recent diplomatic tensions between Australia and China as a possible source of delay.

Discounting of excess stock by competitors A2M and Danone’s Aptamil may also have led to a drop off in Bellamy’s sales in the short term, prompting Goldman Sachs to revise down its earnings forecasts by one per cent for FY18, 22 per cent for FY19 and 15 per cent for FY20.

Goldman Sachs also has lowered it’s Bellamy’s 12-month price target to $21.00.