1. Events.
The company has performed well in the market recently.
two。 Our analysis and judgment.
(1) the details of the brand are still there and are strongly supported by the policy.
The company is one of the 520 key enterprises identified by the State Council, and has been approved as the first batch of 151 "leading enterprises of agricultural industrialization" by the Ministry of Agriculture and other eight ministries and commissions. In 2010, the company was awarded "the first batch of 41 national trademark strategy implementation demonstration enterprises" by the State Administration for Industry and Commerce, and became the only selected enterprise in Henan Province. In 2013, Lotus was listed as the "most valuable Brand in China" for ten years in a row, with a brand value of 3.197 billion yuan.
In the aspects of amino acid fermentation, environmental protection technology, comprehensive utilization of fermentation by-products and deep processing of wheat, the company has a large number of core technologies of intellectual property rights, the product technology is leading in China, and the product quality is improved year by year.
The provincial and municipal party committees and governments are very supportive and highly concerned about the development of the company. Lianhua's major shareholder is the provincial agricultural comprehensive development company, which is directly under the Department of Finance of Henan Province. Lotus's development has been taken as the company's main task and included in the plan. This has laid a solid policy advantage, capital advantage and development advantage for the long-term development of Lotus in the future.
(2) Monosodium glutamate prices are expected to enter the upward channel.
Affected by overcapacity and other factors, the monosodium glutamate industry remains in the doldrums. The boom has risen in 2014, for example, the price of monosodium glutamate has risen three times in a month, totaling nearly 1000 yuan, which may indicate that the process of industry consolidation is coming to an end. With the increasing concentration of the industry and the superposition of the policy of capacity elimination, the average ex-factory price of monosodium glutamate of the major manufacturers will gradually increase, which is conducive to the improvement of the profitability of the industry.
3. Investment advice.
In the general environment of state-owned enterprise reform, pay attention to the possible changes of the company in the future, and the first rating is recommended cautiously.
4. Risk hint.
If the status quo is maintained, then the capital structure and solvency are not optimistic, for example, the interest expense of EBITDA/ is only more than 0.1, the net debt / equity value is 34, and the total net cash flow / liability generated by operating activities is only 0.01.