Shandong Bailong Chuangyuan Bio-Tech Co.Ltd(605016) (605016) is a national high-tech enterprise mainly engaged in the R & D, production and sales of prebiotic series products, dietary fiber series products, other starch sugar (alcohol) series products and health sweetener products. The company can produce more than 60 products of different specifications and models. It is one of the few enterprises with multi variety and large-scale production capacity in China and even the global industry. The production technology level and production scale are among the forefront of China's industry. The product has a wide range of applications and can be added to many downstream end products such as functional food, baked food, dairy products, infant milk powder, functional drinks, health products and so on.
Health awareness has been strengthened, and the demand for prebiotics and dietary fiber products has increased. Chinese residents have paid more and more attention to health, accelerated the process of population aging, and promoted the rapid increase of residents' medical and health care expenditure. With the improvement of national living standards and the increasing number of residents with obesity, diseases and sub-health, people pay more and more attention to health, medical and health care expenditure increases rapidly, and medical and health-related industries have developed vigorously. According to the data of dietary fiber technology branch of China Meheco Group Co.Ltd(600056) Biotechnology Association, China's prebiotics and dietary fiber will maintain a stable growth of about 5% per year by 2026, and their output value will increase year by year.
Prebiotics refer to organic substances that can improve the health of the host without being digested and absorbed by the host. At present, they have been widely used in food, dairy products, medicine, health products and other fields, and the market scale is gradually expanding. Shandong Bailong Chuangyuan Bio-Tech Co.Ltd(605016) product prebiotics and dietary fiber have multiple health effects, wide application fields and huge economic value and market space. In 2019, the total output value of China's prebiotics / dietary fiber industry will be 2.4/3.8 billion yuan, and it is expected to reach 3.6/5.2 billion yuan and CAGR will be 7% / 5.4% by 2025.
Shandong Bailong Chuangyuan Bio-Tech Co.Ltd(605016) its main business is prebiotic and dietary fiber business, which plays an important role in the world. Up to now, the main manufacturers of fructooligosaccharides in China are companies and quantum biology; The global Isomaltooligosaccharide manufacturers are mainly concentrated in China, including the company and Baolingbao Biology Co.Ltd(002286) ; The global manufacturers of resistant dextrin products are also limited to the company and a few British, Japanese and American companies. The production scale of prebiotics and dietary fiber products of the company ranks in the forefront of the industry. In 2018, the product output accounted for 6% (ranking fifth) / 12.5% (ranking second) in the world respectively, occupying an important market share and position, and is expected to fully benefit from the space and growth of the industry.
The downstream demand for healthy sweeteners is strong, and the company's alodonose products are ready to go. Under the trend of health, the public has a strong demand for "sugar substitutes". In 2019, the market scale of sugar free beverages was 9.87 billion yuan, and the CAGR from 2014 to 2019 was 42.84%; In addition, sugar free beverages in China account for only 1.25% of soft drinks (excluding packaged drinking water), and there is a wide growth space. Alodonose is a natural sweetener with very low calories, safety and soft taste. It is an ideal substitute for sucrose. It has the special effects of preventing dental caries, inhibiting the rise of blood glucose and providing a sense of satiety. Alodonose has been approved by the United States, Japan, South Korea and other countries as a food additive, and the food grade application of alodonose in China is also expected to pass the approval. The company's alodonose business takes the lead in realizing the layout and mass production and sales in China, and has been recognized by the overseas market. Waiting for the approval of alodonose in the Chinese market, it is expected to become the highlight of the company's new business.
Strong R & D capability, sound customer marketing network and high downstream stickiness create the core competitiveness of the company. By 2020, the company has obtained 38 invention patents and one utility model patent, including two overseas invention patents. In addition, the company has built a sales network covering major markets around the world. In order to ensure the unity of their own product taste and relevant indicators, downstream customers rarely change suppliers, resulting in high customer stickiness. The cooperative customers of the company cover many large and medium-sized well-known manufacturers at home and abroad. Over the years, the company has served questnutrition, halotop, Wahaha, nongnongshanquan, Mengniu, Yili, Wangwang and other well-known brands, forming customer resource advantages.
Dongxing Securities Corporation Limited(601198) said that it is optimistic about the industry space and growth rate of the company's main prebiotic and dietary fiber industries. As a leading enterprise in the industry, it is expected to fully benefit from the growth of the industry; We are optimistic about the promotion of the new business alodonose overseas and the pending review in China. It is estimated that the net profit of the company from 2021 to 2023 will be 104 million yuan, 173 million yuan and 231 million yuan respectively, and the corresponding EPS will be 0.82 yuan, 1.36 yuan and 1.82 yuan. It will be rated as "strongly recommended" for the first time.
