The company’s main military food and feed additives research and development, production and sales.
The products mainly include vitamin products such as biotin, folic acid, and bio-preservatives such as nisin, natamycin, and ε-polylysine.
The company is one of the earliest domestic companies engaged in the production of biotin and bio-preservatives. Through years of business accumulation and continuous technological innovation, process optimization and application field development, the company has developed into a leading company in the product segment market.Shanghai Chemical has a global leading position in terms of production capacity, technology level, product market share and brand awareness.杭州楼凤
In Q4 2018, through the acquisition of Tongliao Shengda, holding 75% of its equity, it will add new capacity of vitamin B2, xanthan gum and bio-preservative products.
Vitamin field: The parent company’s main products, biotin and folic acid, have increased sales and sales revenue to varying degrees.杭州妃子阁
Under the circumstances of market demand and price decline, operating income of biotin is increasing by 8%.
44%; Folic acid has achieved both contraction and sales growth, and its operating income has increased by 45 per year.
Bio-preservatives (Xinyinxiang Subsidiary): The sales of Xinyinxiang, a subsidiary of the company, increase every year.
00%, net profit increases by 84 each year.
44%, further consolidating the company’s top in the field of bio-preservatives.
Anhui Shengda Subsidiary: The upgrade and reconstruction were basically completed, and the company turned losses into profits in the second quarter.
Tongliao Shengda Subsidiary: The upgrade project is progressing steadily, and the amount is reduced.
Biotin and folic acid prices are expected to grow at the bottom.
The current price of biotin is at the bottom of history, and the price of folic acid has begun to increase.
Analyze the market prices of biotin and folic acid from 2007 to 2018. The current price of biotin (reduced pure) is near the historical lowest price of 2,500 yuan. It is unlikely that the price will continue to be reduced. After the price of folic acid experienced a low price of 18Q4, the price of 19H1 hasDone ascending.
We are optimistic about the subsequent price increases of biotin and folic acid: the driving factors for the price increases of biotin and folic acid. The first is the lack of environmental protection and the increase in supply-side capacity and the replacement of raw material supply. The company uses the leading advantages to obtain successful orders and raw materials.Stable supply; the second is the rise in product prices on the industrial chain brought by the increase in raw material cost of biotin and folic acid.
Boya and Hexun, on May 9th, Higanotti Biotin (2%) was quoted at 90 yuan / kg; On August 26, some folic acid manufacturers received the impact of insufficient raw material supply, and the production is currently suspended., Anhui Tiger raised the price of folic acid 1000 yuan / kg, the export price of 125 US dollars / kg.
Acquired Tongliao Sunda’s consolidated accounts, integrated business resources, and exerted synergies.
(1) Tongliao Shengda’s main products, xanthan gum, and vitamin B2 and Shengda’s products have a certain overlap in the sales market and the customer groups they face.
After the completion of the acquisition, Suntec Bio’s rich industry experience, management capabilities and high-quality customer resources will expand the sales channels for the development and contact of Huanghelong products.
(2) The company’s current production of nisin has seriously exceeded the scale of the product and the market share.
In addition to the project with an annual output of 1,000 tons of nisin and an annual output of 2,000 tons of sugar and sugar fermentation, the company plans to use vitamins B12, polylysine, β-thymidine, etc.Projects, enrich product categories, and add profit contribution points.
(3) Conducive to reducing production costs and improving the company’s profitability.
Tongliao Shengda is located in the west of the Northeast Golden Corn Belt. It is rich in raw materials, adjacent to national roads and highways, and has convenient transportation. The local coal resources are also abundant. Compared with Zhejiang Tiantai County, Zhejiang Province has obvious cost advantages.
Profit forecast: We expect the company’s realizable operating income from 2019 to 2021 to be: 589.
22 million yuan, corresponding to the net profit of 85 yuan.71/94.
58 million yuan, corresponding to 46 for PE.
30 times, give “Buy” rating.
Risk warning: The price of vitamins is lower than expected; the sales volume of vitamins is shrinking due to the price increase; Tongliao Shengda products cannot be put into production on schedule.