Adisseo (600299) Third Quarterly Report: Sales Increase, Insurance Claims Promote Performance Growth, Proposed Acquisition of Minority Shares, Thicken Profits

Adisseo (600299) Third Quarterly Report: Sales Increase, Insurance Claims Promote Performance Growth, Proposed Acquisition of Minority Shares, Thicken Profits

Event 1.

The company released the 2019 third quarter report on the evening of October 23, 2019, and the company achieved revenue of 29 in Q3.

6 ppm, an increase of 6 in ten years.

5%, an increase of 13% MoM; net profit attributable to mothers2.

78 ‰, an increase of 26% in ten years, an increase of 17% month-on-month;

95 ‰, 9 years ago.

8%, ring than epoxy 1%.


The company’s proposed cash purchase of 15% of Adisseo Nutrition Group, the estimated value of 3.6 billion before the initial reduction to 3.1 billion US dollars.

Brief comment on the growth of the company’s performance, mainly due to the increase in sales, insurance claims and other factors. Q3 single-quarter company revenue growth, sustainable gross profit growth.

6%, mainly due to: ① liquid methionine achieved double-digit sales growth, of which the sales volume in the Chinese market increased strongly by 21%; ② vitamin A sales returned to normal, and the price is still relatively high; ③ enzyme preparations and Hili selenium business achieved doubleThe number of fisheries businesses has increased, and the aquatic business has a strong momentum of development. ④ The operation efficiency improvement plan is increased to improve the level of profit management.

Segmentation by segment, 19Q3 functional products, special products, and other products achieved revenue 21 respectively.


2, 1.

6 ‰, respectively changed by 7%, 9%, and 6%, and increased by 15%, 7%, and 6% respectively from the previous month; and realized gross profit of 6 respectively.

6, 2.

9, 0.

1 ‰, a year change of 14%, -5%, -80%, respectively, a chain change of 19%, 2%, -76%.

In terms of price, the prices of VA and methionine were basically stable, and the ranges of change from 18Q3 were -2.

7%, 1.

1%; the changes from the previous month were 0.

9%, -3.


In the case of basically stable prices, the growth in both functional product revenue and gross profit was mainly contributed by the increase in sales.

The non-recurring profit and loss of major companies are relatively high, which is mainly due to the endogenous extension of non-operating income caused by insurance claims. Special products have become the second business department.Has become a veritable second business pillar of the company.

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 addition, the company’s previously developed Rhodimax A + Dry products have the advantages of both liquid methionine concentration and solid methionine, and have great potential in the subsequent market.

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 9 yuan, it rebounded.

At the beginning of October, the legacy of the methionine anti-dumping hearing, the current anti-dumping tailor’s decision has not yet been finalized. According to the information of the feed industry information network, a preliminary ruling may be made in December.

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: BASF resumes production and affects subsequent price trends. The recent VA price is mainly affected by the BASF shutdown: 6 months after BASF ‘s cooling device failed, VA1000 and AD3 vitamin powder products were discontinued. Production is expected to resume in November, but in the fourth quarterCoefficient of operating rate; expected improvement in operating rate in the first half of 2020, but it will still gradually surpass the operating rate before the accident;

As the impact of swine fever gradually bottoms out, next year is expected to usher in a marginal improvement. With the recovery of the demand side, the supply side will be affected according to BASF’s forecast, so the VA price center may exceed next year.
The acquisition of minority stake in Nutrition Group in cash will significantly increase the company’s net profit at the beginning of the year. The company announced that it intends to acquire 15% of the capital of Adisseo Nutrition Group held by Blue Star Group in cash. The estimated value of the underlying equity is approximately 3.6 billion;The plan further reduced the forecast to 31 ppm.

The headquarters of the company has already held 85% equity of Adisseo Nutrition Group. After the completion of the acquisition, Adisseo Nutrition 杭州桑拿网 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.

53,2.9 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.

It is expected that the company’s net profit attributable to the parent in 2019 and 2020 will be US $ 1.13 billion (the acquisition of minority equity is not yet calculated), corresponding to PE of 26X and 22X, and maintain overweight rating.