Plum Group: Amino acids and MSG or simultaneous reversal to help double performance

the consolidation of the MSG industry is drawing to a close, the 2014 industry reversal will help plum performance multiplyWe believe that the consolidation of the MSG industry is nearing completionThis round of integration began in 2011, the current domestic 11 MSG production enterprises have 33% of the production capacity loss of nearly two yearsAgainst the backdrop of increasing environmental protection, we expect the consolidation of the MSG industry to be completed and a new cycle to be launched in 2014Meihua Group accounted for 20% of the domestic MSG production capacity ranked second, will significantly benefit from the MSG price increase performance doubled, we expect the 2014 Meihua Group performance will increase 113% YoY to 0.32 yuan, of which MSG business contribution accounted for about 50%SSB
The effect of avian influenza fades, amino acid prices rise profit will rebound significantlyIn the first half of 2013, avian influenza significantly hit demand in the amino acid industry, including sucone lysine and other feed amino acid products prices and profit margins hit a new 5-year lowAt present, the impact of avian influenza gradually fade, along with the expansion of the company's amino acid product production capacity, Meihua Group cost advantage leading, amino acid business volume price increased by nearly 3 times, accounting for about 20% of the 2014 net profitSSB
New products further optimize the product structure, xanthan gum and Prolando sugar began to contribute to profitSSB
The high gross margin new products laid out by The Plum Group will gradually contribute to the results in 2014The company's independent research and development successfully broke through the technical difficulties of Prundo sugar, 300 tons of production capacity trial production, the company's pharmaceutical raw materials to become a new growth point of profitWhile Huangyuan glue is expected to fall in price but the profit margin is still above average, will gradually begin to contribute to the company's profitsSSBthe MSG industry consolidation is nearing the end, the 2014 industry reversal will help plum performance doubledWe believe that the consolidation of the MSG industry is nearing completionThis round of integration began in 2011, the current domestic 11 MSG production enterprises have 33% of the production capacity loss of nearly two yearsAgainst the backdrop of increasing environmental protection, we expect the consolidation of the MSG industry to be completed and a new cycle to be launched in 2014Meihua Group accounted for 20% of the domestic MSG production capacity ranked second, will significantly benefit from the MSG price increase performance doubled, we expect the 2014 Meihua Group performance will increase 113% YoY to 0.32 yuan, of which MSG business contribution accounted for about 50%SSB
The effect of avian influenza fades, amino acid prices rise profit will rebound significantlyIn the first half of 2013, avian influenza significantly hit demand in the amino acid industry, including sucone lysine and other feed amino acid products prices and profit margins hit a new 5-year lowAt present, the impact of avian influenza gradually fade, along with the expansion of the company's amino acid product production capacity, Meihua Group cost advantage leading, amino acid business volume price increased by nearly 3 times, accounting for about 20% of the 2014 net profitSSB
New products further optimize the product structure, xanthan gum and Prolando sugar began to contribute to profitSSB
　　The high gross margin new products laid out by The Plum Group will gradually contribute to the results in 2014 The company's independent research and development successfully broke through the technical difficulties of Prundo sugar, 300 tons of production capacity trial production, the company's pharmaceutical raw materials to become a new growth point of profit While Huangyuan glue is expected to fall in price but the profit margin is still above average, will gradually begin to contribute to the company's profits SSB
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