GARDEN BIO-CHEM(SZ:300401)2024-12-02 12:42Investment Rating - The report does not explicitly state an investment rating for Zhejiang Garden Biopharmaceutical Core Insights - The company focuses on the research, development, production, and sales of vitamin D3 and related products, as well as preparations for chronic diseases [23][24] - The company has a significant market share in the vitamin D3 sector, with approximately 30% globally and 70% in NF grade lanolin cholesterol [20][21] - The company has seen a substantial increase in net profit attributable to shareholders, with a 62.13% year-on-year growth in the first three quarters of 2024 [23] Summary by Sections Business Overview - The main business includes vitamin D3 and its upstream and downstream products, with applications in feed additives, food additives, nutritional supplements, and pharmaceuticals [23][24] - The pharmaceutical manufacturing sector includes various chronic disease treatment drugs, covering multiple therapeutic areas [23][24] Financial Performance - In the first three quarters of 2024, the company achieved operating income of RMB 938 million, a year-on-year increase of 4.43%, and a net profit of RMB 241 million, a year-on-year increase of 62.13% [23][24] - In 2023, the sales revenue from vitamin D3 and its analogues was RMB 367 million, accounting for 33.52% of total revenue, while drug sales reached RMB 572 million, accounting for 52.27% [24] Market Dynamics - The global theoretical demand for vitamin D3 is approximately 14,793 tons, with China's demand around 2,928 tons [20][21] - The market price of vitamin D3 has seen a significant increase, reaching RMB 230 per kg by November 28, 2024, a rise of 342.1% since the beginning of the year [21][26] Investment Projects - The company is utilizing funds raised from corporate bonds for various vitamin projects, including the production of vitamin A, E, B6, and biotin, as well as high-end generic drug development [25][19] - A new project for the annual production of 10,000 tons of L-Alanine is expected to enhance the company's cost advantages in the VB6 industry chain [25][19]