According to the latest semi-annual report disclosed by Yongan Pharmaceutical (002365), the operating income in the first half of the year was 430 million yuan, a year-on-year increase of 46.77%, and the net profit after non-exclusion was 57.91 million yuan, a year-on-year increase of 153.47%; expected to be 1-9 Monthly net profit increased by 110-160 yuan year-on-year, and the net profit was between 110 million and 130 million yuan.
Taurine is one of the biggest and fastest-growing chemicals this year. Yongan Pharmaceutical's net profit growth in the first half of the year was three times that of operating income. This was due to the rapid rise in the price of its main product taurine. In fact, the company's semi-annual report performance did not fully reflect the price increase of taurine.
As the world's largest taurine producer, accounting for more than half of the world's output, Yong'an Pharmaceutical's performance will increase significantly this year and next. With the revision of long-term orders, its performance in the second half of this year and the first half of next year will increase even more.
According to the information disclosed in Yongan Pharmaceutical's "Investor Relations Activity Record Form", taurine is mainly produced domestically, and there are no other foreign manufacturers except Japan. In 2016, the total domestic output of taurine was approximately 60,000 tons, accounting for approximately 90% of its export volume. There are four domestic manufacturers, namely Yongan Pharmaceutical (with a production capacity of 34,000 tons), Hubei Yuanda Life Technology Co., Ltd. (formerly known as Huanggang Fuchi Pharmaceutical, with a production capacity of about 15,000 tons), and Jiangyin Huachang Food Additive Co., Ltd. ( Production capacity is about 800,000 tons), Jiangsu Ocean Chemical Co., Ltd. (production capacity is about 0.00 tons)
According to estimates from the China Merchants Securities Research Institute, the demand for taurine this year will reach 66,000 tons to 70,000 tons, and the supply and demand gap is 5,000 tons to 10,000 tons. The China Listed Company Research Institute learned from Yongan Pharmaceutical’s agent that the company’s production for this year was all booked in March. Jiangsu Ocean has also stopped external quotations this year, and Jiangyin Huachang’s orders have also been scheduled until November.
It is precisely the synergy of supply and demand that the price of taurine has been rising this year. Scattered orders have increased from US$2/kg at the beginning of the year to US$4.2/kg in March, to US$5.6/kg in April, to US$8/kg in July, and now to US$10/kg.
Last year, Hubei Yuanda planned to invest in a new technological renovation and expansion project of taurine with an annual output of 25,000 tons, that is, to reconstruct and expand two taurine production lines with an annual output of 5,000 tons and 10,000 tons, with an annual output of 2.5 10,000 tons of taurine (an increase of 10,000 tons). Public information from the Yang County government shows that this project has been announced three times from March to the end of July this year. Judging from the latest environmental trends, it is difficult for this project to be approved.
Yangxian County is in the process of applying for a provincial-level ecological civilization county. It will apply to the Huangshi Municipal Environmental Protection Commission for pre-acceptance in November this year and submit an application technical evaluation report to the Hubei Provincial Environmental Protection Commission in late December. At the same time, in September 2016, the Yangxin County People's Government's "Yangxin County Water Pollution Prevention and Control Special Action Plan" document stated: "Strictly implement the decisions of the provincial party committee and the provincial government on the Yangtze River protection, and no heavy chemical industry will be deployed within 1 kilometer along the river. , papermaking and other industry projects. Projects under review will be suspended; projects under construction will be stopped immediately; projects that have been completed and put into production will be rectified and gradually moved away. "The Yuanda Taurine Plant is located 400 meters along the Yangtze River, and is Projects within 1 km have a high probability of relocation. 103010 key governance projects already include Yuanda. If you move, you won't be able to produce for at least half a year.
Since last week, we have contacted the Yangxin County Environmental Protection Bureau office and the External Publicity Office many times, and also contacted Hubei Yuanda to learn about the current situation of Yuanda Taurine Plant and whether it will be relocated, but the Environmental Protection Bureau refused to respond. Yuanda The manager of the company's administrative department hung up the phone directly. Therefore, we speculate that Yuanda may be under great environmental pressure, and whether its taurine factory can produce normally next year is a question mark.
At the same time, Jiangyin Huachang
However, Yongan Pharmaceutical is implementing a taurine expansion project with an annual output of 30,000 tons and is expected to be put into production in the first half of next year. Public information shows that its new project is to update process equipment and build world-class automated and high-tech production lines. Yongan Pharmaceutical has made it clear that after the new production capacity is put into operation, the company's production capacity will increase from the original 34,000 tons to 64,000 tons.
The company plans to prioritize the activation of new production capacity, overhaul of old production capacity, and upgrade of process equipment. And gradually open old production capacity according to market supply and demand conditions. Overall, the overall supply of taurine will likely be less next year than this year.
In terms of demand, industry researchers now predict that functional drinks will more than triple next year, which will bring 15 to 20% growth space for taurine. And there may be more room for demand for feed. After investigating the supply and demand situation, industry researchers from China Merchants Securities and Tianfeng Securities both predicted that the supply and demand gap of taurine next year will be 14,000 tons.
As an additive, the unit usage of taurine is very small, and the downstream users are not very sensitive to its price. Taking Austrian Red Bull as an example, the added amount of taurine is 400mg per 100ml. For a 250 mg can of Austrian Red Bull, the added amount of taurine is 1g. The price of taurine has increased from US$3/kg to US$10/kg, and the cost of a can of Austrian Red Bull taurine has increased from US$0.003 to US$0.01, corresponding to its selling price on Amazon of US$1.14.
Taken together, it is hard to say whether the price of taurine will continue to rise, but the current high price is likely to be maintained until Zhong Yongan Pharmaceutical’s new production capacity is put into operation next year.
Yongan Pharmaceutical’s latest performance growth is lower than the price increase of taurine.
The China Listed Company Research Institute noted that the objective factor that affected the company's performance and product price out-of-sync growth in the first half of this year was mainly the company's order structure. According to the company's "Huangshi City 2017 Water Pollution Prevention and Control Action Plan", orders with general contract periods of one year, half a year, and one quarter are all long-term orders, and taurine accounts for about 50% of the long-term orders and short-term orders.
The May report of the China Merchants Securities Research Institute shows that the long-term order price for this year signed by Yongan Pharmaceutical in November 2016 was approximately US$3.3/kg, and the long-term order price in the first quarter of this year was approximately US$2.4/kg; 3 In mid-month, the company raised its taurine price to US$4.2/kg, and its revenue in the second quarter of this year is expected to be between US$2.40 and US$4.2. At the end of April, the company raised the price of taurine again to US$5.6/kg, and it will not be shipped until the end of the year. Volume prices at which revenue will be recognized in the fourth quarter of this year are expected to be between US$4.20 and US$5.6/kg.
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Public information shows that Red Bull is Yongan Pharmaceutical’s main customer. This year, the company signed a half-year order with Red Bull. After the contract expired in July, the two parties have Re-sign new orders based on market conditions. Judging from the price increase path and order structure, Yongan Pharmaceutical's net profit is likely to increase significantly in the second half of this year and next year. Related questions and answers: Which brand of taurine is good?
By-Health brand taurine is good.
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Reference for the above content: Baidu Encyclopedia - By-Health