SHENGDA BIO-PHARM(603079) 海通国际·2024-11-28 09:05Investment Rating - The report does not explicitly state an investment rating for the company [1]. Core Insights - The company's main products include vitamin products and biological preservatives, with a focus on biotin and folic acid, which are used in various industries such as feed additives, food additives, and pharmaceuticals [1][21]. - The company has seen a significant increase in sales of folic acid, with a year-on-year growth of 69.10% in sales volume and 77.24% in sales revenue [2][21]. - The price of folic acid has surged by 87.5% since November 1, 2024, reaching RMB 330 per kg, which is expected to enhance the company's profitability [4][17]. - The company plans to raise funds through a stock issuance to increase the production capacity of D-isoascorbic acid and its sodium salt, which has a total demand exceeding 200,000 tons [3][16]. Summary by Sections Company Overview - The company primarily produces vitamin products, biological preservatives, and clean label products, with biotin and folic acid being key offerings [1][21]. - In the first three quarters of 2024, the company achieved operating income of RMB 609 million, a year-on-year increase of 11.90% [1][21]. Sales Performance - In 2023, biological preservatives generated sales of RMB 305 million, accounting for 41.89% of total revenue, while vitamin sales were RMB 248 million, representing a decline of 18.96% [2][8]. - Clean label products saw a significant increase in sales, reaching RMB 65 million, a growth of 48.27% year-on-year [2][21]. Market Position - The company is the largest global supplier of biotin with a market share of approximately 30% and has a growing market share of 26% in folic acid [4][17]. - The biological preservatives market is primarily driven by lactic acid streptococcus and natamycin, with the company being a leading manufacturer in this segment [4][18]. Future Prospects - The planned stock issuance aims to fund the expansion of D-isoascorbic acid production, which is expected to create new growth opportunities for the company [3][16]. - The demand for D-isoascorbic acid has expanded significantly, with domestic demand increasing 60 times since 1996, indicating a robust market potential [3][16].