BLB(SZ:002286)2022-11-21 05:30Group 1: Industry Overview - The domestic health issues include sub-health problems, aging, and chronic diseases related to gut health, presenting market opportunities for the company [2] - The sugar-free product market in China is expected to grow significantly, with sugar-free products currently accounting for less than 5% of the market [2][3] - The functional sugar industry is experiencing rapid growth, with the market size projected to reach CNY 227.4 billion by 2025, doubling in five years [3] Group 2: Company Strengths - The company has a complete industrial chain for functional sugar manufacturing, providing a wide range of products and services [3] - The company has established a robust quality management system for functional sugars, validated by over 20 years of customer experience [3][6] - The company’s product structure includes a pyramid of high, medium, and low-end products, enhancing its competitive edge [3] Group 3: Performance and Targets - The company aims for a revenue of CNY 3.75 billion in 2022, representing a 44% year-on-year growth, and a net profit of CNY 260 million, a 73% increase [3] - For 2023, the revenue target is CNY 4.5 billion, with a 20% growth, and a net profit target of CNY 340 million, a 30% increase [3] Group 4: Future Strategies - The company plans to expand production capacity for erythritol and allulose, with projects already underway [4] - The company will focus on refining management practices to achieve innovation, cost reduction, and collaborative efficiency [4] - The company aims to explore new markets and develop differentiated application solutions to enhance revenue [4] Group 5: Product Development Focus - The company identifies isomalto-oligosaccharides as a key product with significant market potential, aiming to replace maltodextrin in beverages [5] - Resistant dextrin is expected to see rapid demand growth, with plans for technical upgrades to meet market needs [5] - Allulose is anticipated to gain approval for use in food and beverages in the EU by 2022, with domestic demand expected to rise by 2023 [5][6] Group 6: Market Dynamics - Erythritol accounted for approximately 25% of the company's revenue in 2021, with demand expected to reach 300,000 tons this year [6] - The market for erythritol is projected to grow to 500,000 tons in the next 3-5 years, driven by expanding applications [6] - The competitive landscape for erythritol includes barriers such as customer certification processes and quality management systems [6][7]