Plum Biology: To invest 2.5-3 0 billion yuan to build a new annual production of 400,000 tons of feed-grade amino acid project

According to the July 11 announcement of Meihua Bio (600873), the company intends to invest RMB 2.5-35 billion in the first phase of northwest Jilin Province or Heilongjiang Province to build a new annual output of 400,000 tons of feed-grade amino acids and their supporting projectsThe construction content of the project mainly includes starch workshop, fermentation workshop, extraction workshop, auxiliary production facilities, sewage treatment workshop and supporting public worksThe project construction cycle is about two to three yearsAfter the project has reached the production effect, the profits tax can reach about 600 million yuanPQX
After the completion and use of this investment project, the company's operating strength, innovation ability and brand competitiveness will be further strengthened, operating income is expected to increase significantly, the company's long-term profitability can be greatly improvedPQX
The announcement said that due to population growth, higher per capita income and changes in dietary structure in developing countries such as China, the demand for animal protein will continue to grow, which will promote the industrialization of poultry and livestock farming, thus promoting the rapid growth of demand for animal nutrition additivesIHS expects global demand for lysine, suthine and tryptophan to grow at a CAGR of 4.2%, 6.6% and 12.2% respectively over the next five yearsThe growth in demand for feed amino acids presents opportunities for the company to expand its production capacityPQX
The main raw material of feed amino acid products is corn, since the state abolished the policy of corn to the city in 2016, the supply market in the northeast region of the main corn producing area appeared surplus, local corn prices continued to fall, corn cost advantage highlightedAt the same time, the downstream customers of feed amino acid products - modern aquaculture enterprises in recent years showed a new plant to the northeast transfer trend, the northeast region on the one hand adjacent to the main corn production area, on the other hand can meet the needs of downstream customersPQX
On April 11, 2017, the General Office of the National Development and Reform Commission issued the Notice on the Abolition of <> (No627 of the Development and Reform Industry) to further liberalize the approval authority for corn deep processing projects, and the policies of the relevant government departments, encouraged by the addition of raw material resources, could provide space for the company to further save production costsBy analyzing the company's existing products, industries, technologies, capital and management advantages, as well as national and local government support policies, coupled with future growth in global demand, the board of directors believes that new projects are feasiblePQX
Industry analysis, plum biology is a leading domestic, international first-class focus on the use of biofermentation technology for research and development, production and marketing of animal nutrition amino acids, human medical amino acids, food taste characteristics optimization products of biotechnology companiesIn the first quarter of this year, the company achieved operating income of RMB2,739 million, an increase of 3.63% YoY, and net profit attributable to shareholders of listed companies was RMB341 million, a significant increase of 53.98 percent YoY, and net profit after deducting non-profit was RMB284 million, an increase of 41.52 percent YoYThis aspect is due to the expansion of product price difference, the main raw material corn prices fell by a larger margin year-on-year, so that the price difference between products in the corn industry chain significantly improved year-on-yearOn the other hand, the company's procurement management process and the active optimization of production efficiency also reduce production costsCorn deep processing is a long industrial chain, including MSG, huangyuan glue, as well as lysine, sucone and so on, and the product scale is relatively large, so the whole corn deep processing is not only productand product competition, or industrial chain and industrial chain competitionPQX According to the July 11 announcement of Meihua Bio (600873), the company intends to invest RMB 2.5-35 billion in the first phase of Jilin Province or Heilongjiang West, and build a new annual output of 400,000 tons of feed-grade amino acids and their supporting projectsThe construction content of the project mainly includes starch workshop, fermentation workshop, extraction workshop, auxiliary production facilities, sewage treatment workshop and supporting public worksThe project construction cycle is about two to three yearsAfter the project has reached the production effect, the profits tax can reach about 600 million yuanPQX
　　After the completion and use of this investment project, the company's operating strength, innovation ability and brand competitiveness will be further strengthened, operating income is expected to increase significantly, the company's long-term profitability can be greatly improved PQX
　　The announcement said that due to population growth, higher per capita income and changes in dietary structure in developing countries such as China, the demand for animal protein will continue to grow, which will promote the industrialization of poultry and livestock farming, thus promoting the rapid growth of demand for animal nutrition additives IHS expects global demand for lysine, suthine and tryptophan to grow at a CAGR of 4.2%, 6.6% and 12.2% respectively over the next five years The growth in demand for feed amino acids presents opportunities for the company to expand its production capacity PQX
　　The main raw material of feed amino acid products is corn, since the state abolished the policy of corn to the city in 2016, the supply market in the northeast region of the main corn producing area appeared surplus, local corn prices continued to fall, corn cost advantage highlighted At the same time, the downstream customers of feed amino acid products - modern aquaculture enterprises in recent years showed a new plant to the northeast transfer trend, the northeast region on the one hand adjacent to the main corn production area, on the other hand can meet the needs of downstream customers PQX
　　On April 11, 2017, the General Office of the National Development and Reform Commission issued the Notice on the Abolition of <> (No 627 of the Development and Reform Industry) to further liberalize the approval authority for corn deep processing projects, and the policies of the relevant government departments, encouraged by the addition of raw material resources, could provide space for the company to further save production costs By analyzing the company's existing products, industries, technologies, capital and management advantages, as well as national and local government support policies, coupled with future growth in global demand, the board of directors believes that new projects are feasible PQX
　　Industry analysis, plum biology is a leading domestic, international first-class focus on the use of biofermentation technology for research and development, production and marketing of animal nutrition amino acids, human medical amino acids, food taste characteristics optimization products of biotechnology companies In the first quarter of this year, the company achieved operating income of RMB2,739 million, an increase of 3.63% YoY, and net profit attributable to shareholders of listed companies was RMB341 million, a significant increase of 53.98 percent YoY, and net profit after deducting non-profit was RMB284 million, an increase of 41.52 percent YoY This aspect is due to the expansion of product price difference, the main raw material corn prices fell by a larger margin year-on-year, so that the price difference between products in the corn industry chain significantly improved year-on-year On the other hand, the company's procurement management process and the active optimization of production efficiency also reduce production costs Corn deep processing is a long industrial chain, including MSG, huangyuan glue, as well as lysine, sucone and so on, and the product scale is relatively large, so the whole corn deep processing is not only productand product competition, or industrial chain and industrial chain competition PQX