Comment
The annual report meets expectations
The company's 2011 income and net profit attributable to listed companies were 208 million yuan and 24.67 million yuan respectively, an increase of 3.87 percent and 14.09 percent respectively over the same period last year.
Gelatin is growing steadily, and collagen is expected to break through the 6.50% increase in gelatin revenue in 2011, mainly due to capacity constraints. With the removal of capacity bottlenecks, the growth of gelatin is likely to reach 19% in 2012. Due to the replacement of bone gelatin for leather gelatin and the continuous growth of the downstream capsule industry, the company's gelatin business will grow steadily in the future. Collagen revenue increased by 38.36% in 2011, and collagen focused on two markets in 2011: 1) terminal sales on the Internet, the company's Taobao Mall flagship store performance is growing rapidly, and the "round element" brand effect will continue to be magnified in the future; 2) the company's collagen has entered the overseas market as a food additive, and this part of the product will have a significant increase in gross profit margin and sales volume in 2012. In 2012, the company launched a TV shopping marketing channel. In terms of online sales, the company has established QQ Mall, Pinji Mall and Baidu, Inc. Leku Tianshang City "Yuansu" flagship stores, and will gradually expand online distribution in other well-known shopping websites to form a comprehensive online sales platform. Ground sales will establish a sound dealer system on the basis of 2011, and further expand sales channels in Inner Mongolia, Jiangsu and Zhejiang provinces. Strengthen research and development to enhance the competitiveness of products
The small molecular collagen of the company has the characteristics of small molecular weight, easy absorption and no addition. it is a collagen product with high performance and price compared with deep-sea cod, tilapia and other molecular weight and unit price. It is more suitable for domestic middle and high-end consumers. The company will further enrich the range of collagen products and strengthen the in-depth exploration of the value of collagen as health products. The company has signed four "technology development (cooperation) contracts" with the Institute of Physics and Chemistry of the Chinese Academy of Sciences, specifically including "the development of compound collagen health products for women's climacteric syndrome", "research on the bone growth-promoting activity of collagen with different molecular weights", "development of new collagen products" and "removal / improvement of bitter smell of collagen products". With the deepening of the research, it will play a positive role in the company's brand building and follow-up market expansion.
The fund-raising project is progressing steadily, and the capacity bottleneck is gradually lifted. The company's fund-raising project is progressing smoothly as planned. At present, the civil works of the gelatin project have been completed, and the full completion period is expected to be mid-2012. In 2011, the company has gelatin production capacity of 4200 tons / year, in 2012, gelatin production capacity will reach 4800-5000 tons / year, in 2013 the company will have a capacity of 6500 tons / year. The main structure of the new plant of the collagen project has been completed, and the main equipment is under processing and production, and trial production is expected to be carried out in the third quarter of 2012. In 2011, the company has a collagen production capacity of 200t / a, and in 2013 it will have a production capacity of 1200 t / a.
The profit forecast is that the company's collagen business is developing rapidly and is expected to become the company's next pillar industry. we expect the company's EPS from 2012 to 2013 to be 0.47 yuan and 0.63 yuan respectively.
The risk indicates the risk of increased competition after capacity expansion in the gelatin industry and the risk that the sales of collagen products are lower than expected.