Dongguan Securities·2025-07-03 08:59Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry, indicating an expectation that the industry index will outperform the market index by over 10% in the next six months [6]. Core Insights - D-Allulose has been officially approved as a new food ingredient in China, which is expected to open up significant domestic market opportunities [1][2]. - D-Allulose is a natural sweetener with important applications in food and health sectors, offering similar sensory characteristics to sucrose while having significantly lower caloric content [5]. - The global market for D-Allulose is projected to grow at a compound annual growth rate (CAGR) of 51.62% from 2019 to 2023, with an expected market size of $204 million in 2024 and $545 million by 2030 [5]. Summary by Sections Event Overview - On July 2, the National Health Commission of China announced the approval of D-Allulose and 19 other new food ingredients, which includes safety assessments for various substances [2]. Market Potential - D-Allulose is primarily used in food and beverages, with 55% of its applications in food and 37% in beverages as of 2020. The market is expected to maintain rapid growth due to its high solubility and blood sugar regulation properties [5]. Supply and Demand - Current production capacity for D-Allulose in China is approximately 30,000 tons, with major producers including Bailong Chuangyuan (15,000 tons), Sanyuan Bio (10,000 tons), and Baolingbao (7,000 tons). All current production is for export, but domestic applications are anticipated to accelerate following the approval [5]. Investment Recommendations - The report suggests focusing on companies such as Bailong Chuangyuan (605016), Sanyuan Bio (301206), and Baolingbao (002286) due to the significant market potential of D-Allulose following its approval [5].