Bailong Chuangyuan(SH:605016) Huaan Securities·2024-06-16 01:30Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage [1]. Core Insights - The company is deeply engaged in the functional sugar and fermentation industry, with continuous high revenue growth [1]. - The dietary fiber segment is performing exceptionally well, with the potential for continued expansion of allulose sugar [1]. - The company is actively pursuing internationalization, having established a production base in Thailand in 2023 to enhance its global competitiveness [1]. Summary by Relevant Sections Company Overview - The company, Bailong Chuangyuan, is a leading domestic sugar biotechnology enterprise and one of the few globally with large-scale production capabilities [1][3]. - It focuses on a variety of products including probiotics, dietary fibers, health sweeteners, and other starch sugars, which are widely used in functional foods, baked goods, dairy products, infant formula, functional beverages, and health products [1][3]. Financial Performance - In 2023, the company achieved revenue of 868 million yuan, a year-on-year increase of 20.28%, and a net profit attributable to shareholders of 193 million yuan, up 28.02% year-on-year [1][31]. - The dietary fiber series contributed significantly to revenue, with 444 million yuan in sales, a growth of 31.08%, accounting for 51.15% of total revenue [1][36]. - The health sweetener segment, primarily driven by allulose sugar, generated 137 million yuan in revenue, reflecting a growth of 44.91% [1][36]. Product Development - The company emphasizes research and development, maintaining innovation momentum with a diverse product range [1][36]. - It has introduced high-end prebiotic products and new health sweeteners, including allulose sugar and is actively developing other high-end products [1][36]. - The company is the first in China to obtain production licenses for resistant dextrin and has industrialized allulose sugar production [1][36]. Market Position and Expansion - The establishment of the Thailand production base is aimed at enhancing international competitiveness, leveraging local raw material cost advantages [1][36]. - The company benefits from lower local prices for key raw materials compared to domestic prices, which can reduce overall costs [1][36]. - The overseas revenue proportion reached 50.75% in 2023, indicating a strong international market presence [1][31].