"The first bull" Rhine bio puzzle: what is the main business yet to be determined

Rhine bio [23.73-2.79%] (Guilin Rhine Biotechnology Co., Ltd., 002166 SZ), known as the "pioneer of trading limit", has experienced five trading limits, with the cumulative increase nearly doubling However, the star company, which is popular in the capital market, is still looking for its main business Luo Huayang, director and Secretary of Rhine biology, said that the company has been screening products and hopes to find the main products For the recent stock price changes, Luo Huayang seems helpless He said that now the company is "well-known", "speculation undoubtedly has an impact on the company's secondary market, but it also distracts its industrial attention to the company itself In fact, the company has been doing industry." Rhine bio, founded in 2000, landed on the small and medium-sized board in September 2007, raising a net amount of 150 million yuan Its circulation market is only 63.16 million shares, and Rhine biology frequently appears in the trading board after listing, so it is known as the "sample of hot money and institutional speculation" At present, Rhine bio is one of the enterprises capable of producing the most complete varieties of plant extracts in China Its main business is plant extracts It is an intermediate industry between agricultural product [17.23 3.73%] planting and medicine, health products, food and cosmetics Rhine bio is also the only listed company in the industry As for the reason for the sharp rise in the share price, it is rumored that during the China Biotechnology and Industry Development Forum, the 12th Five Year Plan for the development of the biological industry led by the national development and Reform Commission will be submitted to the State Council in June Rhine bio clarified that at present, the incident did not have any impact on the company's operation, and the impact of the relevant policies formulated in the plan on the plant extraction industry cannot be determined at present Since its IPO, Rhine bio has appeared in the capital market in terms of "Bull Stock" and "hype sample" Investors usually complain about its performance and go in and out at the same time In 2009, Rhine biology also experienced a similar month of speculation In the first half of 2009, due to the benefit of the concept of influenza A (H1N1), the stock price of rheinx, which provides the raw material of influenza A vaccine with octagonal extract shikimic acid, changed many times In June and July, rheinx also experienced five consecutive trading stops, twice suspended for verification The stock price rose from about 15 yuan at the end of April to 40 yuan at the beginning of July In the report of July 16, 2009, Tianxiang Investment & Consulting consumer goods group said that it maintained its "neutral" investment in Rhine bio, believing that there is little possibility for Rhine bio to achieve greater growth in other businesses except for shikimic acid, and the growth of shikimic acid is insufficient to support the current valuation of the company Rhine bio claims that it has mastered more than 200 production technologies of plant extracts, and more than 60 products have been strictly tested by foreign independent testing institutions, so it can quickly and flexibly adjust production varieties according to market demand, and has the market adaptability leading the industry However, Rhine bio's performance did not follow the soaring share price, and its operating revenue has been hovering around 120 million yuan in recent years Highlight the main business of Rhine biology at present, the main products include grape seeds, Siraitia grosvenorii, Rhodiola, blueberry, wolfberry, star anise and other plant extracts, most of the products are used for export However, although it has been established for more than ten years and has been on the market for more than two years, Rheinland bio does not have a main product line The company is more affected by the epidemic and produces some temporary products This situation makes the company's management moved to find the main product that can support 20% - 30% of the profits At the beginning of its establishment in 2000, the main product of Rhine biology was Ginkgo biloba extract In 2002, the company began to enter the field of Siraitia grosvenorii extract In 2006, due to the outbreak of avian influenza, Rhein biology took the octagonal extract, the main raw material of Tamiflu, as the main product The proportion of octagonal extract increased from 4.1% in 2005 to 23.32% in 2006, and the gross profit contribution increased from 3.24% to 22.4% With the control of avian influenza, the proportion of octagonal extract gradually decreased to about 9% by 2007 Since then, Rhein biology has begun to focus on Siraitia grosvenorii As the main variety on the market, Siraitia grosvenorii contributed about 11% of the company's profits in the middle of 2007 In April 2009, with the outbreak of H1N1, all the company's product lines were put into the production of octagonal extract shikimic acid, and no other products were produced, but this situation did not bring too much profit to the company Rhine Bio said that the company has stopped the production of shikimic acid In 2010, the main products include the extract of Siraitia grosvenorii Luo Huayang said that the company has always wanted to find its main products and adjust its product structure to save costs The company has also made a lot of preparation and investment in Siraitia grosvenorii For example, through research and development, the company changed the original 3-year result of Siraitia grosvenorii to an annual result, and solved the problem that it could only grow on the mountain The main effective ingredient of Siraitia grosvenorii is glucoside, which has high sweetness The sweetness of pure product is 300 times of that of sucrose It is a natural zero calorie sweetener Siraitia grosvenorii, as a natural sweetener, has been rising since 2000 It is the most ideal sugar substitute for fat and diabetic people At present, Pepsi Cola, Coca Cola, Danone, Nestle and other companies have completed the research and development of Siraitia as a sweetener, said a trading person in Guilin However, as a new natural substance, Siraitia grosvenorii still needs to obtain food certification In the United States, it must pass the GRAS certification of FDA, and in Europe, it is EU certification Another difficulty for the popularization and application of Siraitia grosvenorii lies in that it can only be applied to small markets such as diabetes patients In the mass market such as Coca Cola, the cost of adding Siraitia grosvenorii is bound to be too high This is mainly because the content of Siraitia grosvenorii is only 0.2% - 0.3%, and the farmers' planting technology has been optimized to the extreme Unless this fruit can be improved, species selection and large-scale planting, the cost can be reduced Rhein bio's competitor Victoria Biotechnology Co., Ltd of New Zealand and its joint venture company Guilin Giffords Biotechnology Co., Ltd in Guilin produced the fruit type sweet agent of siraitin, which obtained the Gras (generally recognized safety) certification of the US FDA in February this year, and plans to expand the production capacity of siraitin to 500-800 tons in five years According to the above people, Rhein biology has promoted the GRAS certification of Siraitia grosvenorii in the United States since 2008, but the certification is complex and costs millions of dollars Luo Huayang said that the specific time of certification is still uncertain, and it should be taken down this year, but even so, the next market development still has a period of time.