Bao Lingbao: the invisible champion of functional sugar industry for more than 20 years.
The company was founded in 1997, has always focused on enzyme engineering, fermentation engineering and other modern bioengineering technology, is the domestic functional sugar industry leader, engaged in functional sugar research and development, manufacturing and program services, is Coca-Cola Company, PepsiCo Inc, Yili, Mengniu and other famous enterprises strategic partner, is the world's important functional ingredients manufacturing service provider. At present, the company is the only full-category functional sugar product manufacturing service provider in the domestic market, with the core technology of functional sugar and the advantages of the whole industry chain. Provide comprehensive functional oligosaccharides, functional dietary fiber, functional sugar alcohol full range of health products and services, the products are widely used in health food, functional drinks, medicine, non-resistant feed and other fields.
Industry trend: sugar reduction general trend, Yuanqi forest red erythritol sugar-free, low-sugar general trend, food and beverage manufacturers comply with this trend, have launched sugar-reducing products, and use this as a selling point to attract consumers. Yuanqi Forest was born in 2016 and made a counterattack with the concept of "sugar-free" products, with sales exceeding 800 million in the first half of this year. One of the secrets of Yuanqi forest popularity is the use of erythritol as a sugar substitute sweetener. Driven by Yuanqi Forest, many manufacturers have launched drinks with erythritol, which is expected to usher in rapid growth in the domestic erythritol industry.
In 2018, the domestic output of erythritol has reached 28700 tons, an increase of 59.4% over the same period last year. Under the general trend of reducing sugar, assuming that erythritol will replace 5% of the white sugar market in the future, then the potential domestic demand space is expected to reach 800000 tons.
Core advantages: based on R & D and product advantages to provide comprehensive solutions for downstream customers as the leader of the functional sugar industry, we believe that the company's core advantages come from three aspects: 1) R & D and innovation advantages: the company has independent intellectual property rights for the key technologies of functional sugar. the company participated in the formulation of more than 20 industry standards and 1 international standard, mastering the voice of the industry. The company is a national high-tech enterprise, with national enterprise technology center, national sugar engineering and technology research sub-center, national and local joint engineering laboratory. 2) the advantage of the whole industry chain: the company is the only full-category functional sugar product manufacturing service provider in the domestic market, which can provide customers with rich comprehensive solutions. 3) Brand and market advantages: over the years, the company has continuously strengthened its key customer marketing and program marketing capabilities, tailor-made solutions for customers, strategic customers include Coca-Cola Company, PepsiCo Inc, Yili, Mengniu and other famous enterprises.
Profit forecast and investment suggestion
It is estimated that from 2020 to 2022, the company's total revenue will be 21.84 million yuan, an increase of 20.97 percent, 23.86 percent, 25.96 percent, 304 million yuan, 188.54 percent, 79.14 percent and 67.05 percent, respectively, and the corresponding PE will be 0.280.490.82 yuan, respectively, compared with 43-24-14. The company is the leader in the functional sugar industry, providing comprehensive solutions for downstream customers based on R & D advantages and product advantages. Benefiting from the general trend of "sugar reduction", the performance will enter a period of rapid growth.
In the long run, the company's functional sugar products are expected to extend to the terminal, thus further opening up room for growth.
Considering the rapid growth of the company's future performance and referring to the valuation of the comparable company, it is given a "buy" rating of 40 times PE in 21 years, corresponding to the target price of 20 yuan, covering for the first time.
Risk tips: downstream customer demand fluctuations; raw material price fluctuations; industry competition intensifies
