Adisseo (600299): Q3 gross profit growth is good compared with the previous quarter, liquid methionine sales increase rapidly
Event: Adisseo announced the third quarter report of 2019, and achieved revenue of 83 in the first three quarters.
1.3 billion, (-2 per year.
49%), realizing net profit attributable to mother 8.
120,000 yuan (ten years +14.
42%), realizing deducted non-attribution net profit8.
120,000 yuan (one year -2.
Among them, 19Q3 achieved revenue of 29.
550,000 yuan (ten years +6.
61%), realizing net profit attributable to mothers2.
RMB 780,000 (+26 for the whole year.
86%), realizing deducted non-attributed net profit1.
950,000 yuan (ten years -9.
The company also plans to distribute a cash dividend of RMB 1 for every 10 shares to all shareholders.
03 yuan, totaling RMB 2.
7.6 billion (both tax included).
Comment: Adisseo’s Q3 gross profit increased month-on-month. Our analysis is mainly due to the continued increase in sales of main products; transformation, net profit growth has contributed to insurance claims income, while the decrease in non-net profit growth has mainly come from fair value gains and losses.Variety.
3Q19 Adisseo achieved gross profit 9.
64 trillion (ten years +12.
0%), an increase from the previous quarter, reflecting the trend of the main business.
In terms of price, Boya and News 19Q3 liquid methionine (Shandong) quarterly average price was 14.
59 yuan / kg (+1 for ten years.
10%, compared to -30.
82%), VA (500,000 IU / g) is 371 yuan / kg (-2% per minute, the chain ratio is flat), the average selling price of the product is relatively stable, and the methionine chain ratio has improved; in terms of sales, the company ‘s owner in the third quarterLiquid methionine achieved double-digit growth (China’s sales volume increased by 21%), selenium, enzyme preparations, ruminants (US dairy market is recovering now), aquatic products (good performance in Europe and Asia Pacific), mycotoxins management businessGet 15 in bulk?
25% increase; in terms of cost, thanks to the fall in raw material prices (such as 19Q3 China futures price of 7423 yuan / ton, each time -13.
6%, +4 from the previous quarter.
0%) and the improvement of the company’s operating efficiency, the company’s operating costs were effectively controlled based on the increase in sales (19Q3 operating costs 19).
91 trillion, ten years +9.
0%), and finally achieved a gross profit margin of 32 in 19Q3.
62% (year -1.
) To maintain a good level.
In addition, the company’s 19Q3 non-recurring income reached zero.
8.3 billion (decade +0.
7.9 billion, +0.
4.2 billion), mainly from insurance claims; in the net profit of non-return to mothers, the net income from changes in fair value affected the penetration, which was -0 in 19Q3.
170,000 yuan (ten years-0.
4 billion, -0 chain.
38 ppm), 18Q3 is mainly due to changes in the euro / dollar hedging, 19Q2 is also mainly derived from gains from changes in fair value of derivative financial instruments, and 19Q3 is mainly participating in incentive programs.
Overcapacity of methionine and continued low prices; Adisseo achieved rapid sales growth with its liquid egg advantage, cost competitiveness and R & D strength, and new projects have been built to drive company performance growth.
It is said that Feedinfo currently has a global annual output of about 170 tons of methionine and a demand of about 130 tons. The overall situation of oversupply has caused prices to continue to fall for 15 years. In April this year, Novus announced the cancellation of Texas.The methionine production expansion plan, the same month the Ministry of Commerce of China launched an anti-dumping investigation on methionine, which boosted the price of methionine and has continued to this day (an increase of about 10%).
According to the Japan Chemical Industry Daily, in October, in order to improve production efficiency and reduce production indicators, the same month the Ministry of Commerce ‘s anti-dumping hearing on methionine was on schedule. We analyzed the major or large-scale expansion of methionine overseas in the future.
In addition, due to the continuous increase of domestic liquid methionine permeability and broad market prospects, and the aforementioned cost advantages and technological research and development strength of Adisseo, the company’s liquid methionine sales have grown rapidly (domestic growth rate of more than 20%).
The company expanded the production of 5 injections in Europe in 18 years, the Nanjing factory completed the demoulding transformation, and the current Nanjing 18 injection new liquid methionine project (planned to invest 4).
(9 billion US dollars) construction is progressing smoothly, and it is expected to be put into production in 21 years. The company is expected to maintain the industry leading position of methionine in the future (According to the announcement, Adisseo’s global market share is currently about 27%).
Stable development of vitamin A business and accelerated layout of special product segments.
Due to the impact of the BASF accident in June, the price of VA is relatively relative; Feedinfo expects that the BASF plant will be restored in November, but the start of 19Q4 and 20Q1 will maintain the level, and 20H2 will have production shutdown and expansion plans, so the supply or maintenance of the VA industry in the medium termTightening situation.
The company maintains a stable production capacity of 4,000 tons / year.
In addition, the high-value-added specialty products business is the company’s second pillar business. It is derived from the continuous expansion and development of existing product lines, the continuous introduction of new products and external mergers and acquisitions. Andy Su has become a global leader in animal nutrition specialty products.One, the development will continue to accelerate in the future.
Adisseo completed an investment in smart farming on October 9.
The investment target is Tibot, a pioneer in robotics that focuses on poultry farming. The company develops robotic solutions for poultry farmers to increase their income, improve farm working conditions and improve animal health.
It is planned to hold 100% of Adisseo Nutrition Group to optimize the company’s financial structure.
In October, the company announced that it intends to acquire from the Bluestar Group a 15% remaining equity of its subsidiary Adisseo Nutrition Group (the 85% equity held has been injected during the 15-year asset restructuring), achieving 100% control.
The underlying asset’s EPS estimate is 30.
RMB 860,000, deducting non-attributed net profit in 201811.四川耍耍网
4.9 billion calculated equivalent to the acquisition price-earnings ratio of 17.
9 times, if the completion of the acquisition is feasible in Q1 2019?
The net profit attributable to mothers of listed companies in Q3 increased.
The acquisition will be paid in cash, with a consideration of 15 in the first period.
430,000 yuan was paid with Adisseo’s own funds, and the consideration for the second phase was 15 yuan.
$ 4.3 billion or additional funding through financing.
According to the announcement, at the end of 19Q3, Adisseo’s currency fund surplus was US $ 5.2 billion (of which daily operating capital requirements were US $ 2 billion), and the asset-liability ratio was 19.
4%, the fund surplus meets the requirements of the first payment, and the financing is worry-free with a low asset-liability 都市夜网 ratio.
In addition to increasing the earnings of listed companies, the acquisition will also further enhance the control of listed companies on Adisseo Nutrition Group, which will help improve and simplify the corporate governance structure, promote the company’s management decisions and management efficiency, and help develop andEnhancing the competitiveness of the company’s core business can fully realize the most efficient allocation of company resources.
Shareholder Bluestar Group intends to issue Adisseo exchangeable bonds.
Adisseo’s shareholder Bluestar Group issued Adisseo’s exchangeable corporate bonds held on October 16 with a size of no more than $ 4.5 billion and an initial conversion price of 11.
56 yuan / share, the conversion period is from October 21, 2020 to October 18, 2024.
Calculated based on the issue of 45 million shares, corresponding to 3 after all conversions.
8.9 billion shares of Adisseo, accounting for 14 of the total share capital.
5%, that is, Blue Star Group’s shareholding in Adisseo was reset to 89.
1% dropped to 74.
6%, holding shares unchanged.
After the issuance of funds from the issuance of exchangeable bonds minus the issuance costs, the Blue Star Group will be used to repay interest-bearing debt.
Investment suggestion: Overweight-A investment rating. We estimate that the company’s net profit attributable to mothers for 2019-2021 will be 11.
470,000 yuan, 12.
1.4 billion, 13.
500,000 yuan, corresponding to the closing price of 10 on October 24, 2019.
The predicted price-earnings ratio of 68 yuan per share is 25.
Risk warning: the risk of price fluctuations of methionine and vitamin A products, the risk of fierce competition in the industry, the risk of rising raw material prices, and the risk of new business expansion falling short of expectations