Adisseo (600299): Deducting non-performance by volume compensation price is basically flat, dairy industry recovers, strong momentum for specialty products

Adisseo (600299): Deducting non-performance by volume compensation price is basically flat, dairy industry recovers, strong momentum for specialty products

The event company released the 2019 performance report on February 13, 2020, and the company realized revenue of USD 11.1 billion in 2019, which became the full year2.

5%; realized net profit attributable to mother 9.

92 ppm, a ten-year increase of 7.

2%; net profit after deducting non-return to mother 8.

97 ppm, 10-year average1.


Brief commentary The company’s revenue and gross profit are reported separately based on the amount of supplementary price and deduction of non-performance reports.

According to the price of methionine and VA, the average price of solid methionine and liquid methionine is 18 in 2019.

62, 15.

10 yuan / kg, minus 5 at least.

1%, 1.

9%; VA average price is 358 yuan / kg, an increase of 49%.

The decline in the company’s revenue was lower than the decline in product prices, mainly due to: ① the increase in production and sales of products; ② the strong momentum of special products.

In 2019, the company’s special products segment achieved revenue of 24 trillion and 12 trillion gross profit, compared with 22 in the same period last year.

6, 11.

10,000 yuan.

The improvement of the company’s net profit level is mainly measured by the overall cost measures of the impact of non-recurring profit and loss items such as cost reductions of 36 million euros and insurance claims.

Endogenous extension and simultaneous development, special products become the second pillar of the business reported that the company’s special product revenue accounted for about 22%, according to the company’s statement of gross profit accounted for at least 30% or more, has become the company’s veritable second business pillar.

The scale of the company’s special product business has expanded rapidly. The integration benefited from the integration of Nutriad and the reorganization benefited from the strong sales growth of products such as Hilary Selenium and Antailai.

In particular, due to the recovery of the US dairy industry in the fourth quarter, the growth rate of rumen-free methionine products increased by 27% in a single season, so the growth rate was 11%.

Revenue from the aquatic products business benefited from the outstanding performance of the Asia Pacific and South America regions, which achieved a 17% increase; similarly, the mycotoxins management products business also achieved a 12% revenue increase.

Methionine: short- and medium-term anti-dumping boosts prices and provides opportunities for liquid egg penetration. Starting in the second half of 2016, the price of methionine began to decline all the way. After April 2018, it fell below the 20 yuan mark. It was created in early April 2019.16.

After a record low of 重庆耍耍网 9 yuan, it rebounded.

The legacy of the methionine anti-dumping hearing in early October, the current anti-dumping ruling has not yet been finalized.

According to the anti-dumping report, the domestic market share of methionine originating in Singapore, Malaysia, and Japan is about 50%. Once it is identified as dumping, the short-to-medium term will inevitably boost the price, and the anti-dumping against solid methionine will be liquid methionine penetration.Increased rates provide opportunities.

VA: The impact of BASF’s resumption of production at the end of 2017 on subsequent price trends. VA price trends are basically related to BASF accidents.

The recent VA price was mainly affected by the epidemic situation and the BASF production shutdown incident in June 19, when the VA1000 and AD3 vitamin powder products 天津夜网 were discontinued due to the failure of the cooling device, and so far has not completely returned to normal.

Under the influence of the epidemic, domestic land transportation has encountered various degrees of obstacles, and low inventory in overlapping industries has once again established a certain boosting effect on VA prices.

Looking ahead, the recovery of BASF will have a decisive impact on the price trend of VA. Before its supply resumes, VA prices are expected to remain high.

The purchase of a minority stake in Nutrition Group in cash will significantly increase the company’s return to its parent company’s net profit. The company intends to purchase in cash a 15% stake in Adisseo Nutrition Group held by Blue Star Group, with a target value of $ 3.1 billion.

The headquarters of the company has already held 85% equity of Adisseo Nutrition Group. After the completion of the acquisition, Adisseo Nutrition Group will become a wholly-owned subsidiary of the company.

Adisseo Nutrition Group’s grain is the company’s main source of profit and loss for minority shareholders, and the profit and loss of minority shareholders in 2016, 2017 and 2018 were 4 respectively.

51, 3.


9 billion, accounting for 24%, 27% and 31% of the net profit attributable to the mother.

This acquisition is a cash acquisition and has no dilutive effect on EPS. It is expected that after the completion of the acquisition, the company’s net profit attributable to its mother company will increase significantly. However, due to the impact of the nutrition group’s preferred shares, the minority shareholders’ profits and losses will not be completely eliminated.

The transaction was approved by shareholders on December 6, 2019 and is expected to be completed in the first half of 2020.

It is expected that the company’s net profit attributable to its mother in 2020 and 2021 will be 10 respectively.3, 11.

0 ppm (the acquisition of minority equity is not calculated yet), corresponding to PE 27X, 25X, maintaining the level of overweight.