Domestic leading enterprise of gelatin business

The company's main products are medicinal gelatin, edible gelatin, photographic gelatin, round collagen series products and so on. In the field of gelatin production, the company is one of the four largest gelatin production plants in China, with a history of nearly 50 years, with a capacity of 4200 tons / year of bone gelatin, one of the largest gelatin production enterprises in China, and the first domestic production plant to meet GMP standards and achieve automatic monitoring enterprises, production equipment has reached the first-class level at home and abroad.

Rectify the industry and improve the business of gelatin

With the exposure of the industrial gelatin problem, it is expected that the drug supervision department will strengthen supervision over the whole gelatin industry, and some unqualified enterprises will be squeezed out of the market. High-quality enterprises in the industry with advanced technology, excellent production equipment, excellent management level and obvious scale effect will be given key support, and the industry will form a situation of oligarchic competition in the future. With the gradual release of the company's gelatin production capacity, the gelatin business will contribute stable revenue to the company, and the company's gelatin business is expected to maintain growth of at least 15% from 2012 to 2014.

Collagen has broad prospects for development.

Although the collagen industry has been in China for a short time, with the vigorous promotion and expansion of some international well-known enterprises in the domestic market. With the continuous improvement of people's consumption level, people begin to pay more and more attention to green, natural, pollution-free, healthy and environmentally friendly collagen series health products and cosmetics, and their awareness is greatly improved. it is expected that the proportion of collagen consumers in China will continue to expand in the next three years, and collagen consumption will show a strong growth trend. the annual demand is expected to reach 20000 tons in 2015, compared with 3000 tons in 2003. The average annual compound growth rate reached 23.47%, ushering in a peak of rapid growth.

There are many bright spots in the company's collagen products.

The company is one of the few domestic enterprises that have mastered the core technology of preparing low molecular weight collagen from high-quality bone gelatin through independent innovation. with the completion of the fund-raising project-the project with an annual output of 1000 tons of soluble collagen, the company will transform its technological advantages into economies of scale and market share advantages, and further enhance its market position. Benefiting from the rapid development of the industry and the resurgence trend of domestic products in the future, we are very optimistic about the market prospect of the company's collagen business. It is estimated that the revenue growth rate from 2012 to 2014 will reach 150%, 80% and 50%, and the market share will continue to increase rapidly.

Investment advice:

Give a "outperform" rating in the next six months.

The company's earnings per share in 11 years is 0.32 yuan, and it is expected to be 0.42 yuan in 12 years. Based on the closing price of 35.59 yuan on April 20, the static and dynamic P / E ratios are 109.61 times and 84.03 times respectively. The 11-year and 12-year average price-to-earnings ratios of listed companies in chemical preparation industry are 31.47 times and 23.56 times respectively. As a professional manufacturer of gelatin products, the production equipment has reached the first-class level at home and abroad, with a high degree of standardization and obvious technical advantages. with the further expansion of production capacity, it can ensure the steady growth of gelatin business in the future. At the same time, the company actively promotes a series of collagen products with high gross profit margin, which adds new profit points for the company, and its future performance is expected to exceed expectations. We are optimistic about the company's future growth and give the company a rating of "outperform the market in the next six months".