Introduction to the background of the collection
It is the first fine chemical company in China to produce, develop and sell refined chemical products such as incense raw materials and special chemicals. Focus on the use of professional fine organic chemicals and separation technologies to produce three major products: aromatic chemicals, natural extracts and medical substances. As related functional raw materials, the products are used in daily chemical and edible flavors, personal care and washing, cleaning and disinfection, food, food, agricultural chemicals, industrial solubilization and other industries. in addition to mainland China, the products mainly include many countries and regions, such as Asia, America, Asia and so on.
Mid-2016 schedule of duties
The total cost of housing and employment is about 797 million yuan for the people, an annual increase of about 6%. Gross profit for the people totaled 194 million yuan, an annual increase of 12 percent, and a gross profit margin of 24.4 percent, up 1.2 percentage points from 23.2 percent in the same period last year. Profits paid 76.66 million yuan to the people, down 21 percent year-on-year. After deducting (I) the loss of ╱ on the foreign exchange contract of the people against the US dollar during the period and the same period last year, and (ii) the effect of the loss of ╱ on the recorded gain on foreign exchange, the profit in the same period last year increased by 24%. The basic earnings per share during the period was 11.82 cents per share, a year-on-year decrease of 20.7%.
The view of management manager
In the future, it will continue to develop in the direction of "color, aroma, and taste." In terms of "aroma and flavor" service, set will add more varieties of fragrant raw materials, including a series of flavor products that provide flavor solutions for central housing, and further enrich the combination of products. In terms of "natural products", the current production equipment has been in full swing, the collection company has set up a natural essential oil management center and equipment database in Yunnan, and the information management system for natural resources has begun operation. The government approval of the Guli project has been basically completed, and the production of the Gu Lei project is expected to begin in 2019. In terms of business, we do not check the range of data to keep the cost under control. On the other hand, there are few stocks in the country, so they do not have a certain degree of discretion, and the gross profit margin is also relatively stable. The poor performance of earnings in recent years is mainly affected by people's earnings, which is not expected to fade in the second half of 2016, but will be less next year.
Our views.
We believe that the market has become a market leader, and it has always been reflected that its performance is very stable, and that with the continuous development of the Gu Lei project and the "natural products" and "functional materials industry" in the past, the expected income will continue to grow, but the people's income will still be a drag on growth this year and next. Compared with the same industry, its valuation lags behind, with estimated earnings per share of HK $0.24 and HK $2.03 for 2016 and 2017 respectively, corresponding to 5.5 times forward earnings in 2017.