Incident: The company released its 2019 performance report. During the reporting period, the company achieved revenue of 1,244 billion yuan (-12.09% YoY) and realized net profit of 44 million yuan (+103.2% YoY). Comment: We analyzed the year-on-year recovery in the company's 2019 performance. Among them, there was a slight year-on-year decline in revenue, mainly due to the impact of African swine fever and the fact that the subsidiary Jiangsu Brothers stopped production for a long time, and sales of the company's vitamin products fell year on year; due to the increase in the price of some vitamin products and the increase in production and unit manufacturing costs of the subsidiary Jiangxi Brothers, the net profit to the mother increased. In 2020, with the resumption of production of VB1 and the commissioning of new projects in Jiangxi, the company is expected to reach an inflection point in business. VB1 production is about to resume: A variety with a relatively good pattern among VB1 vitamins. On April 14, 2019, the company announced that in order to respond positively to the Jiangsu chemical industry rectification and upgrading plan and further improve the safety and environmental protection level of Jiangsu Brother Vitamins (the main product is VB1), the latter stopped production to carry out remediation and upgrading work; on September 29, the application for the resumption of production of Brother Vitamins passed the initial review and district level inspection in the Hong Kong region. The Dafeng District People's Government plans to apply for a municipal review for it, but centralized heating in the park has not yet been restored. On February 16, 2020, according to Boya Hexun, a municipal review of Brother Vitamins is underway. It is expected that production will resume in the first half of this year to restore performance. Production volume of new projects such as Jiangxi: 5,000 tons of VB5 and 13,000 tons of VB3 (and the intermediate 10,000 tons of 3-cyanopyridine) at the end of 2017 (according to Boya Hexun, Brother's production of VB5 and VB3 in '19 was about 1,500 tons and 7,000 tons respectively), 1000 tons of iodine contrast agents and intermediates, 20,000 tons of phenol derivatives (including vanillin, ethyl vanillin, parahydroxyanisole, etc.) Trial production began a few years ago. According to the announcement, it is expected to be in the second quarter It gradually contributed to revenue before and after (net profit estimated at 220 million yuan after delivery). The acquisition of shares in LANXESS was acquired to integrate the chromium salt industry chain, leading to increased performance. Factors such as supplementing with pigs in 2020 will drive marginal improvement in vitamin demand, public health emergencies will affect short-term production and logistics, and the supply of products such as VB1 may be tightened. The marginal demand for vitamins is improving: Most of the downstream vitamins are mainly feed, and the original demand is relatively rigid. In 2019, the number of pigs released in China due to African swine fever dropped drastically. After considering partial supplementation of poultry, the annual feed demand fell by about 8-10% year on year; in 2020, with the continuous advancement of pig supplements (the Central Committee Document No. 1 of February 5 indicates the need to speed up the resumption of pig production), the increase in the weight of pigs released, the nutritional concentration of feed increases, and stocks in all parts of the feed chain are cleared. Vitamin demand is expected to recover, and this year it is expected to be in a unilateral upward range after an inflection point. The public health emergency affected short-term production and logistics: Affected by the public health emergency, domestic logistics were limited, and there were obstacles to the resumption of work in some chemical sub-industries; as can be seen from the product price performance in the past two weeks, the price increase in the vitamin and amino acid sub-industries, which account for a large share of China's production capacity in the world, is remarkable. Currently, VB1 inventory is at a low level and production starts are affected. It is expected that product supply will tighten; VK3 manufacturers' willingness to ship has declined, and product supply is also expected to tighten. Investment advice: Buy-A investment rating. We expect the company's net profit from 2019 to 2021 to be 44 million yuan, 139 million yuan, and 204 million yuan, respectively. Risk warning: Vitamin prices fluctuate greatly, and downstream demand falls short of expectations.