Star Lake Technology: Hard work, performance is expected to continue to improve

Star Lake Technology in 2009 due to sales restructuring, sales revenue growth and product gross margin increase, the performance of more than 650%1, beneficial nucleotide prices and sunine prices rose sharply, the 2009 results exceeded expectationsIn 2009, star lake science and technology benefit main products showed a large increase in the price of taste nucleotides and susine, in 2009 the main business income and net profit increased significantlyNet profit growth of more than 650%, according to the 2008 net profit of 29 million, in 2009 the company can achieve net profit will exceed 217.5 million yuan, EPS 0.42 yuan, indicating that the fourth quarter of 2009 to achieve EPS 0.25 yuan or more, significantly exceeded expectations2, 2010 taste nucleotide prices are expected to run at a high levelBy December 2009, the price of taste nucleotides rose to 190,000 yuan/tonne, and there is a continuing upward trendIt is understood that the price of tasted nucleotides in China's exports has risen from $22/kg in November 2009 to $24/kg todayMoreover, with the introduction of the preliminary anti-dumping ruling, the price of flavornucleotides is likely to exceed 200,000 yuan / ton, and may be maintained in the future for a period of time about 200,000 yuan / ton3, demand growth and relative stability of industrial structure are the fundamental driving force seduof the price of taste nucleotidesFor more than 10 years, taste nucleotides have been produced by five enterprises, namely miso, Hija, Korean elephant, Japan's Takeda and Xinghu Technology, and since China imposed high anti-dumping duties on nucleotide food additives from Japan and South Korea in 2005, the production capacity of Japan and South Korea has all been transferred to Indonesia, Thailand and China, from the original 5 to 4 (South Korean elephants and Japan's Takeda joint venture in Indonesia to build a joint venture Kirin misonia food company production of taste acid production industry has not been significantly stable)from the Ministry of Commerce's recent anti-dumping investigation data, China's apparent demand for taste nucleotides has shown rapid growth since 2007, and we understand from the information of agents, China's 2009 taste nucleotide demand growth of more than 20%And the domestic capacity expansion rate is only a single digitTherefore, we believe that demand growth and the relative stability of the industrial structure are the fundamental driving force behind the rise in the price of TASTE nucleotides, and that the growth in demand is mainly due to changes in people's tastes (e.greplacing MSG with chicken essence, etc.), and this growth will not fade in the short termfrom the public information, we believe that the growth of taste nucleotide demand in 1 to 2 years will exceed the rate of capacity expansion, so the price of flavornucleotides is expected to remain high4, susine prices and libavelin prices are the icing on the cakeThe price of susine has increased the demand for susine due to the improvement of feed formulation, and its price has also increased from an average of 13.4 yuan/kg in the first half of 2009 to 19-21 yuan/kg at presentWe believe that due to the increase in the price of susine due to changes in the structure of demand, this price increase will continue for a considerable period of time if other capacity does not keep up, so the price of susine is expected to remain at about 20 yuan/kg or higher in 2010Star Lake Science and Technology is China's largest susine manufacturer, the current production capacity of 30,000 tons, and is currently in short supplythis will enhance the company's profitability in 2010Star Lake Science and Technology is one of the three major Libawelin manufacturers in ChinaThe price of Ribavirin rose slowly from a low of 320 yuan/kg in February-March 2009, and began to accelerate to 400 yuan/kg in the 3rd quarter of 2009, with a current price of 500 yuan/kgWe believe that the average price of Ribavirin in 2010 remained at least 450 yuan/kg, at a cost of 320 yuan/kg, and that the product could generate a gross profit of nearly 60 million yuan for the company5, investment advice: maintain a strong recommendationAccording to the recent anti-dumping investigation of nucleotides in China's nucleotide import price of 61,000 yuan / ton, to make a minimum of 6.5% of the anti-dumping margin levy ratio to calculate the cost of flavored nucleotides of Star Lake Technology should be about 62,000 yuan / tonWe believe that the main products of Star Lake Technology are flavor nucleotides, sunine and Libavirin prices will be maintained at about 200,000 yuan / ton, 20 yuan / kg and 450 yuan / kg or more, therefore, to increase the 2010 performance of Star Lake Technology to EPS1.17 yuan2011 assumes that the price of flavornucleotides falls (due to capacity expansion) to about 150,000 yuan / ton, the price of Susine remains at about 16 yuan / kg, its main business EPS will be about 0.6 yuan (based on the issuance of 50 million shares), plus Guangfa Securities equity income of 0.44 yuan or more, its EPS will be more than 1 yuanAlthough the main source of profit starring Star Lake Technology is food additives, feed additives and raw materials, but its food additives and sucone feed additives are the price increase brought about by changes in demand structure, and the market is a high growth period, coupled with the possibility of asset injection in the future of the majority shareholder Guangxin Group, so the valuation level of Star Lake Technology at 20 times should be reasonableAccording to the 2010 performance of 1.17 yuan to calculate its reasonable share price should be 23.4 yuan, from the current share price of 13.43 yuan has a large gap, maintain a strong recommendation rating on Star Lake Technology, 12 months target price of 23.4 yuanStar Lake Technology in 2009 due to sales restructuring, sales revenue growth and product gross margin increase, the performance of more than 650%1, beneficial nucleotide prices and sunine prices rose sharply, the 2009 results exceeded expectationsIn 2009, star lake science and technology benefit main products showed a large increase in the price of taste nucleotides and susine, in 2009 the main business income and net profit increased significantlyNet profit growth of more than 650%, according to the 2008 net profit of 29 million, in 2009 the company can achieve net profit will exceed 217.5 million yuan, EPS 0.42 yuan, indicating that the fourth quarter of 2009 to achieve EPS 0.25 yuan or more, significantly exceeded expectations 2, 2010 taste nucleotide prices are expected to run at a high level By December 2009, the price of taste nucleotides rose to 190,000 yuan/tonne, and there is a continuing upward trend It is understood that the price of tasted nucleotides in China's exports has risen from $22/kg in November 2009 to $24/kg today Moreover, with the introduction of the preliminary anti-dumping ruling, the price of flavornucleotides is likely to exceed 200,000 yuan / ton, and may be maintained in the future for a period of time about 200,000 yuan / ton 3, demand growth and relative stability of industrial structure are the fundamental driving force seduof the price of taste nucleotides For more than 10 years, taste nucleotides have been produced by five enterprises, namely miso, Hija, Korean elephant, Japan's Takeda and Xinghu Technology, and since China imposed high anti-dumping duties on nucleotide food additives from Japan and South Korea in 2005, the production capacity of Japan and South Korea has all been transferred to Indonesia, Thailand and China, from the original 5 to 4 (South Korean elephants and Japan's Takeda joint venture in Indonesia to build a joint venture Kirin misonia food company production of taste acid production industry has not been significantly stable) from the Ministry of Commerce's recent anti-dumping investigation data, China's apparent demand for taste nucleotides has shown rapid growth since 2007, and we understand from the information of agents, China's 2009 taste nucleotide demand growth of more than 20% And the domestic capacity expansion rate is only a single digit Therefore, we believe that demand growth and the relative stability of the industrial structure are the fundamental driving force behind the rise in the price of TASTE nucleotides, and that the growth in demand is mainly due to changes in people's tastes (e.g replacing MSG with chicken essence, etc.), and this growth will not fade in the short term from the public information, we believe that the growth of taste nucleotide demand in 1 to 2 years will exceed the rate of capacity expansion, so the price of flavornucleotides is expected to remain high 4, susine prices and libavelin prices are the icing on the cake The price of susine has increased the demand for susine due to the improvement of feed formulation, and its price has also increased from an average of 13.4 yuan/kg in the first half of 2009 to 19-21 yuan/kg at present We believe that due to the increase in the price of susine due to changes in the structure of demand, this price increase will continue for a considerable period of time if other capacity does not keep up, so the price of susine is expected to remain at about 20 yuan/kg or higher in 2010 Star Lake Science and Technology is China's largest susine manufacturer, the current production capacity of 30,000 tons, and is currently in short supply this will enhance the company's profitability in 2010 Star Lake Science and Technology is one of the three major Libawelin manufacturers in China The price of Ribavirin rose slowly from a low of 320 yuan/kg in February-March 2009, and began to accelerate to 400 yuan/kg in the 3rd quarter of 2009, with a current price of 500 yuan/kg We believe that the average price of Ribavirin in 2010 remained at least 450 yuan/kg, at a cost of 320 yuan/kg, and that the product could generate a gross profit of nearly 60 million yuan for the company 5, investment advice: maintain a strong recommendation According to the recent anti-dumping investigation of nucleotides in China's nucleotide import price of 61,000 yuan / ton, to make a minimum of 6.5% of the anti-dumping margin levy ratio to calculate the cost of flavored nucleotides of Star Lake Technology should be about 62,000 yuan / ton We believe that the main products of Star Lake Technology are flavor nucleotides, sunine and Libavirin prices will be maintained at about 200,000 yuan / ton, 20 yuan / kg and 450 yuan / kg or more, therefore, to increase the 2010 performance of Star Lake Technology to EPS1.17 yuan 2011 assumes that the price of flavornucleotides falls (due to capacity expansion) to about 150,000 yuan / ton, the price of Susine remains at about 16 yuan / kg, its main business EPS will be about 0.6 yuan (based on the issuance of 50 million shares), plus Guangfa Securities equity income of 0.44 yuan or more, its EPS will be more than 1 yuan Although the main source of profit starring Star Lake Technology is food additives, feed additives and raw materials, but its food additives and sucone feed additives are the price increase brought about by changes in demand structure, and the market is a high growth period, coupled with the possibility of asset injection in the future of the majority shareholder Guangxin Group, so the valuation level of Star Lake Technology at 20 times should be reasonable According to the 2010 performance of 1.17 yuan to calculate its reasonable share price should be 23.4 yuan, from the current share price of 13.43 yuan has a large gap, maintain a strong recommendation rating on Star Lake Technology, 12 months target price of 23.4 yuan (name)