The Zhitong Finance App learned that Fufeng Group (00546) rose sharply in the afternoon. As of press release, Fufeng Group rose 9.54% to HK$287, with a turnover of HK$19 million.

According to data from Zhuochuang Information, as of November 19, the average annual price of the 40th package of MSG in 2021 was 8870.8 yuan/ton, an increase of 25.1% over the previous year.

Zhuo Chuang News pointed out that in the recent past, the industry's downstream routine just needed to appear. Even if corn prices fell, the increase in chemical additives far exceeded the decline in corn, and the monosodium glutamate market continued to rebound at a high frequency. Construction in the main production areas was insufficient in early November. Coupled with rising diesel, increased transportation costs, tight capacity, poor upstream and downstream storage, and conscious limited upstream orders, the market price of monosodium glutamate has remained high. Construction resumed to nearly 80% in late November, transportation pressure eased, downstream resistance to wait-and-see increased, inventory turnover between upstream and downstream became slow, and the actual order price of MSG was slightly weak.

Fufeng Group (00546) is the world's largest producer of MSG and xanthan gum. In the first half of this year, the company achieved revenue of 9.521 billion yuan and net profit of 591 million yuan, of which the MSG segment accounted for 37.6% of revenue.