Event: according to the semi-annual report for 2020, the total operating income was 1.017 billion yuan, an increase of 17.24% over the same period last year, and the net profit of shareholders belonging to listed companies was 43.39 million yuan, an increase of 78.21% over the same period last year.
Benefited from the increase in downstream demand, and achieved rapid growth in the first half of the year.
In the later stage of the epidemic, people's attention to health and functional products gradually increased, and driven by the global trend of low sugar and reducing sugar, the company's main business sectors achieved good growth. Affected by the hot sales of sugar-free and low-sugar drinks represented by Yuanqi Forest in the first half of the year, the company's revenue of erythritol reached 209 million yuan, an increase of 37.03% over the same period last year, accounting for 20.54% of the total income, an increase of 2.97% over the same period last year. Gross profit margin 21.67%, up 4.09% year-on-year. For other products, the income of functional sugar was 175 million yuan, an increase of 22.81% over the same period last year, and that of other starch sugars was 195 million yuan, an increase of 37.70% over the same period last year.
With the general trend of reducing sugar and reducing sugar, erythritol has great market potential.
Erythritol is the only sugar alcohol product prepared by natural transformation and extraction by biological fermentation in the market, and it is a 0-energy sugar alcohol product recognized by the National Health and Family Planning Commission. Driven by the global trend of low sugar and sugar reduction, and the influence of the hot sale of sugar-free and low-sugar drinks represented by Yuanqi Forest in China, with the characteristics of natural, zero calorific value, non-participation in blood sugar metabolism, high tolerance and stable acid-heat performance, the company has been highly concerned by the market, and product sales have maintained rapid growth for many years. In addition to its application in beverages, erythritol can also be widely used in sugary foods and daily chemical products, and even replace white sugar into the field of household consumption. Under the general trend of sugar reduction, assuming that erythritol will replace 5% of white sugar market in the future, then the potential domestic demand space is expected to reach 800000 tons.
The company has outstanding competitive advantages and is expected to fully benefit from the general trend of reducing sugar.
As a leader in 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 participates in the formulation of more than 20 industry standards and 1 international standard. Master the voice of the industry. 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 the ability of key customer marketing and program marketing, docking with customer implementation plans and collaborative innovation. Based on the company's competitive advantage, we believe that the company is expected to fully benefit from the general trend of reducing sugar in the future.
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 76-42-25. Benefiting from the general trend of "sugar reduction", the company's 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 the growth space and maintaining the "buy" rating.
Risk tips: downstream customer demand fluctuations; raw material price fluctuations; industry competition intensifies