Yeast JiSheng push revenue growth quantity and price

Investment points:
A quarterly performance slightly than expected. The 2011 quarter to achieve the company operating income 6.18 billion yuan, 9391 million yuan, belonging to the parent company net net respectively year-on-year growth 8516 yuan, 20.7% 32.4%, MBT Salama, thickening 54.9% (2010 decided to purchase minority shareholders rights than in the first quarter net profit growth belongs parent company growth), earnings per share 0.28 yuan, slightly above expectations of our 0.23 yuan.
Yeast JiSheng push revenue growth quantity and price. (1) the quantity to add: quarter company continue to increase market development dynamics, yeast series products are sold in domestic and international market, we estimate that quarter increase the total sales of about three million tons, yeast products above 20 percent year-on-year growth in; (2) the price rises: company export, sale in domestic market of yeast products separately in November and December, raise to digest 5% mounting cost pressure (currently rivals also started to raise prices). mbt sandals sale Yeast to increase sales and prices to raise its exports and domestic income are achieved more than 30% growth.
Molasses year-on-year rise 20%, price cost pressures remain. Quarter in the purchasing price molasses 1200-1300 yuan/ton, rose by 20%, and molasses prices continued to rise erosion yeast products. In the first quarter profit level comprehensive c.m 3.4 percentage points year-on-year drop due to the end of last year, 32.2 (but raise prices, c.m annulus picks up 1.3 percentage points). Because the company cost the fifo, second quarter use of molasses cost annulus to continue to ascend, yeast product c.m confined. We think the company may take the following ways: (1) the digestive cost pressure, current southeast Asia import molasses apply to port is the domestic price of molasses, low prices 10% of heavy pollution due to molasses processing industry of molasses, previously countries import restriction is more, but if molasses prices continueMBT Kisumu, to maintain high company can import quotas for certain. (2) if molasses prices continue to rising greatly decreased, gross margin does not exclude the company will continue to increase the opportune time the second half.
Production release earnings growth is expected to continue to push, 11-13 years EPS separately for 1.29/1.56/1.95 yuan, the current share price corresponding 11-13 years PE28/23 / buy rating, maintain 19 times. Chung phase iii 15,000 tons left end of yeast and processing capacity and put into production, which can profit from this year, besides the company will contribute through technical renovation, outsourcing of expanding yeast production scale, way not considering Egyptian base 15,000 tons yeast capacity, the total expected 2011 can achieve 13 million tons of yeast above. New capacity will drive performance in release continued to increase.
11-13 years EPS is expected to 1.29/1.56 / respectively, the current share price $1.95 MBT Fumba. corresponding 11-13 years PE28/23 / buy rating, maintain 19 times. (ZhaoJinHou boyer) ShenYin kingdoms