Plum Bio 14 Annual Report Review: MSG Reversal Established, Amino Acids Expected to Bottom

Company reported that in 2014, operating income was RMB9.86 billion, up 26.79 percent year-on-year, and net profit attributable to the parent company was RMB500 million, up 23.92 percent year-on-year, with EPS 0.16 yuanAt the same time announced the dividend plan, it is proposed to all shareholders for every 10 shares of the dividend of 1 yuan8
The main point8
1The production of the Xinjiang base and the increase in product prices led to a faster growth in revenue8
During the reporting period, sales revenue growth was driven by increased sales volume as xinjiang base production capacity continued to be releasedIn terms of condiments, a total of 30,000 tons of small packets of MSG and 510,000 tons of large packets of MSG were sold, while gross marginincrease increased by more than 3% to 19% year-on-year due to the small increase in MSG prices8
Amino acids, sales of 138,000 tons of susine, 98% lysine 88,000 tons, 70% lysine 126,000 tons, while the company announced in the second half of last year to acquire Ningxia Yipin, bringing the industry concentration increased, resulting in the price of susine prices8
　　Revenue in the amino acid industry increased by 63.76 percent year-on-year, while gross margin increased by 6.07 percent year-on-year 8
　　At the same time, the company continued to increase the proportion of amino acids and MSG exports, overseas operating income of nearly 2.8 billion yuan, up 13.09% year-on-year, export share has reached about 28% 8
　　2 MSG industry shuffle ends, reversal trend established 8
　　At present, the total production capacity of MSG industry 2.6 million tons, demand of about 2.2 million tons, Fengfeng, Meihua, Yipin three cities accounted for 80% 8
　　The company's MSG production capacity has reached 700,000 tons, second only to the world's largest MSG producer, Yufeng Group (950,000 tons) 8
　　MSG INDUSTRY HAS BEEN DEPRESSED FOR MORE THAN 3 YEARS, THE CURRENT SMALL AND MEDIUM-SIZED PRODUCTION CAPACITY ONLY IN SHANDONG, NINGXIA AND OTHER 3-5 OR SO, AND ARE IN A STATE OF PRODUCTION STOP OR LIMITED PRODUCTION Yanfeng and Meihua base are in The cost advantage of obvious Xinjiang, Inner Mongolia and northeast region, single-ton production costs compared to the industry lower than 1000 yuan, the current MSG industry shuffle has basically ended, the reversal trend established, is expected to rise to 8300-8500 yuan / ton range, the company's net profit of 700-800 yuan In 2016 and 2017 will usher in a sharp rise in MSG prices (2009 highs of more than 14,000 yuan), regardless of any mergers and acquisitions, MSG prices for every increase of 1000 yuan, thickening the company EPS 0.16 yuan 8
　　3 The bottom of the amino acid industry is improved 8
　　The company has a production capacity of 150,000 tons and lysine production capacity of 260,000 tons The current price of Susine 1.25-1.28 million yuan, the company's net profit per ton 1500-2000 yuan, and the vast majority of the industry manufacturers can only break even break even loss 8
　　We expect that prices of sunine will continue to rise steadily as the concentration of industry consolidation increases significantly 8
　　Lysine prices have been unilaterally down for nearly 5 years, the industry is still in a situation of oversupply, the current price has been below 8000 yuan / ton, the industry loss Some lysine manufacturers in the long-term serious loss state had to take measures to stop production or temporarily close production lines, in April 2014 the world's largest lysine production enterpriseDens (total production capacity of 800,000 tons) announced the suspension of the Changchun Baocheng plant 200,000 tons of lysine production capacity, Yanfeng Group in December 2013 to stop lysine production, and such as Changji Jinze, Huaxing biochemical and other small and medium-sized lysine production has also stopped production, according to our statistics, about 50 million tons of lysine production Lysine is also expected to rebound as small and medium-sized production capacity continues to exit and industry consolidation accelerates 8
　　4 Industry consolidation trend, 2015 industry is expected to become the amino acid industry merger and acquisition year 8
　　In November, the company issued an additional offering to acquire a 100% stake in Ningxia Yipin Bio, a leading company in amino acids and MSG, by issuing shares and paying cash Recent media reports that South Korea's Hijie sued Ipin biolylyly lysine infringement, may have an impact on the integration of the company and Ipin However, industry integration is the trend, in 2014 the industry giants are also in frequent contact, is expected to become the year of industry mergers and acquisitions, amino acid industry competition pattern is expected to improve significantly at8 Company released its annual report, in 2014, a total operating income of 9.86 billion yuan, an increase of 26.79 percent, attributable to the parent company net profit of 500 million yuan, an increase of 23.92 percent year-on-year, EPS 0.16 yuan At the same time announced the dividend plan, it is proposed to all shareholders for every 10 shares of the dividend of 1 yuan 8
　　The main point 8
　　1 The production of the Xinjiang base and the increase in product prices led to a faster growth in revenue 8
　　During the reporting period, sales revenue growth was driven by increased sales volume as xinjiang base production capacity continued to be released In terms of condiments, a total of 30,000 tons of small packets of MSG and 510,000 tons of large packets of MSG were sold, while gross marginincrease increased by more than 3% to 19% year-on-year due to the small increase in MSG prices 8
　　Amino acids, sales of 138,000 tons of susine, 98% lysine 88,000 tons, 70% lysine 126,000 tons, while the company announced in the second half of last year to acquire Ningxia Yipin, bringing the industry concentration increased, resulting in the price of susine prices 8
　　Revenue in the amino acid industry increased by 63.76 percent year-on-year, while gross margin increased by 6.07 percent year-on-year 8
　　At the same time, the company continued to increase the proportion of amino acids and MSG exports, overseas operating income of nearly 2.8 billion yuan, up 13.09% year-on-year, export share has reached about 28% 8
　　2 MSG industry shuffle ends, reversal trend established 8
　　At present, the total production capacity of MSG industry 2.6 million tons, demand of about 2.2 million tons, Fengfeng, Meihua, Yipin three cities accounted for 80% 8
　　The company's MSG production capacity has reached 700,000 tons, second only to the world's largest MSG producer, Yufeng Group (950,000 tons) 8
　　MSG INDUSTRY HAS BEEN DEPRESSED FOR MORE THAN 3 YEARS, THE CURRENT SMALL AND MEDIUM-SIZED PRODUCTION CAPACITY ONLY IN SHANDONG, NINGXIA AND OTHER 3-5 OR SO, AND ARE IN A STATE OF PRODUCTION STOP OR LIMITED PRODUCTION Yanfeng and Meihua base are in The cost advantage of obvious Xinjiang, Inner Mongolia and northeast region, single-ton production costs compared to the industry lower than 1000 yuan, the current MSG industry shuffle has basically ended, the reversal trend established, is expected to rise to 8300-8500 yuan / ton range, the company's net profit of 700-800 yuan In 2016 and 2017 will usher in a sharp rise in MSG prices (2009 highs of more than 14,000 yuan), regardless of any mergers and acquisitions, MSG prices for every increase of 1000 yuan, thickening the company EPS 0.16 yuan 8
　　3 The bottom of the amino acid industry is improved 8
　　The company has a production capacity of 150,000 tons and lysine production capacity of 260,000 tons The current price of Susine 1.25-1.28 million yuan, the company's net profit per ton 1500-2000 yuan, and the vast majority of the industry manufacturers can only break even break even loss 8
　　We expect that prices of sunine will continue to rise steadily as the concentration of industry consolidation increases significantly 8
　　Lysine prices have been unilaterally down for nearly 5 years, the industry is still in a situation of oversupply, the current price has been below 8000 yuan / ton, the industry loss Some lysine manufacturers in the long-term serious loss state had to take measures to stop production or temporarily close production lines, in April 2014 the world's largest lysine production enterpriseDens (total production capacity of 800,000 tons) announced the suspension of the Changchun Baocheng plant 200,000 tons of lysine production capacity, Yanfeng Group in December 2013 to stop lysine production, and such as Changji Jinze, Huaxing biochemical and other small and medium-sized lysine production has also stopped production, according to our statistics, about 50 million tons of lysine production Lysine is also expected to rebound as small and medium-sized production capacity continues to exit and industry consolidation accelerates 8
　　4 Industry consolidation trend, 2015 industry is expected to become the amino acid industry merger and acquisition year 8
　　In November, the company issued an additional offering to acquire a 100% stake in Ningxia Yipin Bio, a leading company in amino acids and MSG, by issuing shares and paying cash Recent media reports that South Korea's Hijie sued Ipin biolylyly lysine infringement, may have an impact on the integration of the company and Ipin However, industry integration is the trend, in 2014 the industry giants are also in frequent contact, is expected to become the year of industry mergers and acquisitions, amino acid industry competition pattern is expected to improve significantly 8
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