Plum 1Q Report Meets Expectations, Concentration Increases Boost Results

Boa helion report: On April 21, 2015, Meihua Bio released its first quarter report, achieving operating income of RMB3,096 million, compared with RMB2,099 million in the same period last year, up 47.49 percent YoY; Year-on-year growth was 141.39%Basically in line with the Company's First Quarter 2015 Earnings Advance Announcement, released on April 9viM
The main reason for the company's profit growth xinjiang plum amino acid effective responsibility company production capacity release, sales increased, while the amino acid market, MSG market gradually recovered, the company's main products MSG, lysine, susine and other sales prices brought about by increased profitsviM
After the acquisition of Yipin, the concentration of the domestic MSG industry has increased significantly, and the production capacity and market share of Yufeng and Meihua will exceed 90%, forming a double oligopoly patternThe industry experienced two years of downturn, 15 years before and after the Spring Festival MSG price did not appear in previous years, indicating that the bottom of MSG price solid, industry shuffle completed, the market has entered a relatively balanced supply and demand stagetheviMlysine industry is still in the integration phase, and competition is gradually improvingAfter this year, the production of Dentons lysine significantly reduced, as the world's largest lysine manufacturer, its production reduction for the industry out of the trough has a certain boostviM
Sunine manufacturers have a high concentration, the current supply of domestic market manufacturers to plum, I.p, fufeng, plum as the world's largest sunine production enterprises, according to the 2014 domestic supply calculation, plum blossoms accounted for more than 50% of the domestic market share, after the acquisition of Ippin, reached 59% Although Star Lake has resumed production, but the main external exports, limited domestic market share, in addition, Ipin in Chifeng added 100,000 tons of susine project, scheduled to start production in May 2016, when the plum market share will be increased again The increase of industry concentration is conducive to maintaining high profitability of sucnonine viM
　　Note: From the view point of CITIC Construction Securities
ViM Boya and News: On April 21, 2015, Meihua Bio issued its first quarter report, realizing operating income of RMB3,096 million, compared with RMB2,099 million in the same period last year, up 47.49% YoY; Year-on-year growth was 141.39% Basically in line with the Company's First Quarter 2015 Earnings Advance Announcement, released on April 9 viM
　　The main reason for the company's profit growth xinjiang plum amino acid effective responsibility company production capacity release, sales increased, while the amino acid market, MSG market gradually recovered, the company's main products MSG, lysine, susine and other sales prices brought about by increased profits viM
　　After the acquisition of Yipin, the concentration of the domestic MSG industry has increased significantly, and the production capacity and market share of Yufeng and Meihua will exceed 90%, forming a double oligopoly pattern The industry experienced two years of downturn, 15 years before and after the Spring Festival MSG price did not appear in previous years, indicating that the bottom of MSG price solid, industry shuffle completed, the market has entered a relatively balanced supply and demand stage the viM lysine industry is still in the integration phase, and competition is gradually improving After this year, the production of Dentons lysine significantly reduced, as the world's largest lysine manufacturer, its production reduction for the industry out of the trough has a certain boost viM
　　Sunine manufacturers have a high concentration, the current supply of domestic market manufacturers to plum, I.p , fufeng, plum as the world's largest sunine production enterprises, according to the 2014 domestic supply calculation, plum blossoms accounted for more than 50% of the domestic market share, after the acquisition of Ippin, reached 59% Although Star Lake has resumed production, but the main external exports, limited domestic market share, in addition, Ipin in Chifeng added 100,000 tons of susine project, scheduled to start production in May 2016, when the plum market share will be increased again The increase of industry concentration is conducive to maintaining high profitability of sucnonine viM
　　Note: From the view point of CITIC Construction Securities
viM shared to feed micro-blog