Xinhecheng (002001): Performance compound expects vitamin business boom

Xinhecheng (002001): Performance compound expects vitamin business boom

Event: The company released its 2018 annual report, which included the company’s operating income of 86.

8.3 billion, an increase of 39 over the same period last year.

72%; realized net profit (net profit attributable to owners of the parent company) 30.

790,000 yuan, an increase of 80 over the same period last year.


The company released the first quarter of 2019 report, reporting that the combined company achieved operating income18.

3.6 billion, a decrease of 39 over the same period last year.

71%; realized operating profit 5.

8.9 billion, down 67 from the same period last year.

27%; realized net profit (net profit attributable to owners of the parent company) 5.

110,000 yuan, a decrease of 65 over the same period last year.


Corresponds to a relative return of 0.

24 yuan, the expected average ROE dropped to 3.


Expected results of investment points reached expectations, and R & D expanded to strengthen core competitiveness. The company achieved operating income in the fourth quarter.

64 ppm, a reduction of 8 per year.

35%, to achieve net profit attributable to mother 5.

4.1 billion, a decrease of 32 every year.


The decline in Q4 performance was mainly due to the company’s vitamin product price Q3 began to decline, and the vitamin A price fell by more than 50% in Q1 2018.

Reporting intelligence, the company’s nutrition business income 57.

370,000 yuan, an increase of 31 every year in the same period last year.

01%, gross profit margin 57.

20%, a year-on-year increase of 0.

92 units.

The main income of flavor and fragrance is 20.

86 ppm, an increase of 56 in the same period last year.

40%, gross margin 54.

22%, a year-on-year increase of 15%.


77 units.

In terms of expenses, the company’s selling expenses2.

5.2 billion, up from 19 previously.


Management expenses 3.

51 ppm, an increase of 33 per year.

95%, mainly due to the increase in employee compensation, consulting fees, office travel expenses and depreciation and amortization costs.
Finance costs 2422.
09 million yuan, a year of 83.

98%, mainly due to the reported short-term exchange rate changes.

R & D expenses in this period 4.

57 trillion, an increase of 35 in ten years.

93%, mainly due to the increase in the company’s R & D investment.

The company has 35 projects under construction at the end of 2018.

180,000 yuan, an increase of 492 over the beginning of the year.

40%, accounting for 16.

04%, mainly due to the participation of new projects at the first level.

The performance of the first quarter is stable. The annual report of high base growth rate for 18 years is reported. The company’s operating income and profit growth are mainly due to the report that the sales prices of major products have fallen.In the first quarter of this year, the performance base was relatively high, and Q1 performance in the first quarter of 2018 was relatively stable.

In terms of expenses, the company’s financial expenses were 4,997.

780,000 yuan, financial expenses are reduced by 54 each year.

81%, mainly due to the reported short-term exchange rate changes.

Construction in progress at the end of the period 48.

710,000 yuan, an increase of 38 from the beginning of the year.

44%, mainly due to the report leading to increased investment in new projects.

The construction of new projects is gradually progressing. The potential for methionine business to accumulate potential. The company intends to invest about USD 3.6 billion in the construction of a biological fermentation project in Heilongjiang, which will further enrich the variety of vitamin products. The construction period is 2 years. It is estimated that it will generate about 2 billion in operating income and about 7.
08 ‰; It is planned to invest 2 to redeem nutritional products such as VE, with a construction period of 2 years, with an income of approximately 1.8 billion yuan and a profit and tax of approximately 6.

400 million yuan.

The methionine company’s nutrition product segment has a large potential in the future. At present, the first phase of project 5 has been put into production this year. The overall planned design capacity is 30, and the remaining capacity will be released in the next 3-5 years.

After full release, the body can prove the American International Methionine Faucet.

The concentration of methionine industry is extremely high. The company is the eighth company in the world with only methionine core production technology.

The downstream methionine demand growth is stable and almost coincides with the downstream vitamins. Therefore, the company’s methionine business is expected to play a synergistic effect with the vitamin sector. Using the company’s strong vitamin sales channels, it can quickly promote methionine products, shorten the early product cultivation period, and save channel construction costs.
The fragrance and fragrance business continues to grow, new materials business increases the company’s diversified growth points. The company has developed the fragrance and fragrance business since 2007. The strong research and development capabilities brought by it, as well as the effect of coordinated production of the upstream vitamin center, can basically guarantee the launch of one per year.New products, and some products have reached the expected international competitiveness. The company’s Shandong production base plans to use 1,000 acres of land. Several potential products have been planned. It is expected that the board will maintain stable growth of 20-30% in the future.

The company’s new materials business is mainly PPS products. The first phase of the 5合肥夜网,000-ton PPS project is now operating normally, and the second phase of 10,000 expected projects is gradually entering the market.

Earnings forecast and forecast The company is expected to achieve operating income of 92-20 in 2019-2021.

12 ppm, 124.

30,000 yuan, 127.

55 ppm with a growth rate of 6.

09%, 34.

64%, 2.


Net profit attributable to parent company 22.

34 billion, 30.

4.7 billion, 35.

53 trillion, the growth rate was -27.

43%, 36.

40%, 16.

The company’s EPS is expected to be 1 in 2019-2021.
04, 1.


65 yuan / share.

Risk Warning 1.

Vitamin prices have risen sharply.


Methionine production is less than expected