Summary:

The company is based on corn deep processing, multi-path, multi-variety development of corn extraction industry enterprises. After starting cooperation with Zhejiang Zhongjikang Company in 2016, the company has penetrated into the special medicine food industry and entered the field of health.

From the perspective of business development, the performance in the field of nutrition and health care has led to a substantial improvement in the company's overall performance, the China News expects the overall performance growth rate to be less than 50%, and the development of new areas has become a direction that the company can not ignore.

The company's special medicine food field and dietary fiber are the focus of the market. There is a large space for the development of special medicine food in our country. Compared with the per capita consumption level and market cognition level of other overseas countries, our country still has a big gap, which also shows the market potential of our country. Although the vast majority of the domestic market is monopolized by multinational companies Abbott Laboratories, Danone, Nestl é and Feisen, Baolingbao, as a large domestic special medicine food enterprise, relies on its own manufacturing capacity with the support of policies. the products such as Peptide Yuyu, Tengyichang, Wulian probiotics and other products have been widely sold in third-class first-class hospitals with considerable development in the future.

According to the "Research report on the Development opportunities of the Great Health Industry in the next decade", the growth rate of the nutrition and health care industry will reach 2 trillion yuan in 2023, and the development of the company's dietary fiber will benefit from the scale effects of the industry. Judging from the development track of the dietary fiber subdivision industry, we expect that in the mature period of the industry, dietary fiber will maintain a growth rate of 20%, 25%, and continue to develop.

Profit forecast: we forecast that the EPS of the company from 2017 to 2019 will be 0.19,0.24,0.43 respectively, giving the company an "overweight" rating.

Risk tips: 1) the risk of market change; 2) regulatory risk; 3) the risk of industrial policy change.