STAR LAKE SCIENCE(600866) 民生证券·2024-12-06 02:45Investment Rating - The report gives a "Recommend" rating for Xinghu Technology (600866 SH) [1] Core Views - Xinghu Technology has successfully acquired Yipin Bio, becoming a leading player in the corn deep processing industry [1] - The amino acid industry is benefiting from the policy of reducing soybean meal usage, leading to increased demand for lysine and threonine [1] - The monosodium glutamate (MSG) industry is oligopolistic, with the I+G market experiencing rapid growth [1] - Xinghu Technology's capacity and financial advantages are becoming more prominent, with profitability expected to continue improving [1] Company Overview - Xinghu Technology, originally a MSG producer, expanded its business to include food additives, pharmaceutical intermediates, and bio-APIs after acquiring Yipin Bio in 2022 [1] - Post-acquisition, the company's revenue surged from 1 235 billion yuan in 2021 to 17 486 billion yuan in 2022, a 329 51% increase [1] - Net profit attributable to the parent company rose from 106 million yuan in 2021 to 608 million yuan in 2022, a 299 85% increase [1] - In the first three quarters of 2024, the company achieved revenue of 12 79 billion yuan, a 0 48% YoY increase, and net profit of 677 million yuan, a 38 38% YoY increase [1] Amino Acid Industry - The demand for lysine and threonine is expected to grow due to the reduction in soybean meal usage [1] - The supply side is characterized by a concentration of production capacity among leading companies, with Xinghu Technology being a global leader [1] - The industry is moving towards consolidation, which will further highlight the scale advantages of leading companies [1] MSG and I+G Industry - China is the world's largest producer and consumer of MSG, with production and demand reaching 2 69 million tons and 2 68 million tons respectively in 2023 [1] - The MSG industry is dominated by three major players: Fufeng Group, Meihua Group, and Xinghu Technology [1] - The I+G market, known as "strong MSG," is also growing steadily, with major players including CJ, Meihua Group, and Xinghu Technology [1] Financial Performance and Projections - Xinghu Technology's revenue is projected to grow from 17 374 billion yuan in 2023 to 23 058 billion yuan in 2026 [1] - Net profit attributable to the parent company is expected to increase from 678 million yuan in 2023 to 1 371 billion yuan in 2026 [1] - EPS is forecasted to rise from 0 41 yuan in 2023 to 0 83 yuan in 2026 [1] - The company's PE ratio is expected to decrease from 17X in 2023 to 8X in 2026 [1] Strategic Advantages - Xinghu Technology's global leading production capacity and cost control capabilities are significant advantages [1] - The company's financial strength is increasing, with improved operational capabilities [1] - In 2023, the company increased its cash dividend ratio to 93 13%, with a dividend yield of 5 63% [1]