Plum flower biological products volume and price increased together with the net profit increased 139% capacity release into the world’s largest amino acid production enterprise
With the baicheng Project gradually put into production, Meihua Biological (600873.SH) ushered in the peak performance.Recently, Meihua biological disclosed the 2021 annual report, the reporting period, the company achieved revenue of 22.837 billion yuan, a year-on-year growth of 33.94%, net profit of 2.351 billion yuan, a year-on-year growth of 139.4%.Among them, in the fourth quarter of the single quarter, Plum Blossom biology achieved revenue of 6.552 billion yuan, net profit increased by 528.22% to 1.024 billion yuan.How did the plum blossom creature achieve such a brilliant result in 2021?Changjiang Business Daily has noticed that in 2021, the second phase of Jilin Meihua’s biological subsidiary will release its MSG production capacity, which will increase the sales volume of MSG. In addition, the amount and price of threonine will increase, and the price of lysine, xanthan glue and other feed products will increase, which will drive the increase of main business income.In addition, the growth of operating costs in 2021 is also lower than the company’s revenue growth.In 2021, the company achieved revenue of 22.837 billion yuan, up 33.94% year on year, while total operating cost of 20.25 billion yuan, up 27.32% year on year.Compared with ten years ago, the progress made by Plum blossom is undoubtedly huge.In 2012, The company achieved revenue of 7.47 billion yuan and net profit of 608 million yuan. In 2022, the company achieved revenue of 22.837 billion yuan and net profit of 2.351 billion yuan. Based on this calculation, the company’s revenue compound growth rate is 13.22% and net profit compound growth rate is 16.21% in ten years.The company’s performance in recent years has been mediocre, despite overall growth.From 2014 to 2017, the company’s net profit continued to grow, respectively 500 million yuan, 426 million yuan, 1.042 billion yuan, 1.174 billion yuan, but the revenue was not very stable, respectively 9.865 billion yuan, 11.85 billion yuan, 11.09 billion yuan, 11.03 billion yuan.In the following three years, that is, from 2018 to 2020, as the company continued to expand production, the revenue recovered growth, respectively achieving 12.65 billion yuan, 14.55 billion yuan, 17.05 billion yuan, but the net profit began to decline for three consecutive years, respectively 1.002 billion yuan, 989 million yuan, 982 million yuan.Until 2021, due to the increase in the quantity and price of amino acid products, the profitability of Plum blossom organisms will be greatly improved.In 2021, Plum Blossom Biology achieved revenue of 22.837 billion yuan, up 33.94% year on year, net profit of 2.351 billion yuan, up 139.4% year on year, net profit of revenue both hit a record high.Among the business segments, the revenue of animal nutrition and amino acid products was 11.587 billion yuan, up 33.39% year on year;The revenue of food taste trait optimization products was 8.518 billion yuan, 41.61% higher than last year.In 2021, the company achieved a gross margin of 19.34% and a net margin of 10.4%.Although there is still a gap from the pre-EPIDEMIC gross profit margin of 22.58% in 2019, it is still a big increase from the 2020 gross profit margin of 14.67%.According to the public information, Meihua Biological was founded in 1995. It is a company based on synthetic biology and other disciplines, using biological manufacturing technology, mainly engaged in the research and development, production and sales of amino acid products.The main products include animal nutrition amino acid products, food taste trait optimization products, human medical amino acid products.The company has three production bases in Tongliao, Inner Mongolia, Wujiaqu, Xinjiang and Baicheng, Jilin, and two R&D centers in Langfang and Shanghai.At the same time of multi-product development, Meihua Biological seized the opportunity of continuous growth of downstream demand, and continued to layout in the main production areas of raw materials such as corn and coal.By the end of 2020, the company’s baicheng Phase ii 25 tons of MONOsodium glutamate and supporting projects will be put into production;In March 2021, The 300,000-ton lysine project of Baicheng Phase III and its supporting projects will be officially broken ground and put into production for trial run in November 2021.According to the Annual report of Meihua Biology, after the lysine and Baicheng phase III projects were put into operation, the lysine production capacity of the company reached one million tons and threonine 300,000 tons, and the scale of amino acid products ranked in the forefront of the industry. The scale advantage in the industry became increasingly prominent, and the leading position became more stable. The company has become the largest amino acid production enterprise in the world.It is worth mentioning that under the circumstance of continuous increase of production capacity, The company’s biological capital remains abundant all year round. In 2021, the company’s net cash flow from operating activities was 3.67 billion yuan, with a year-on-year growth of 120.95%.In addition, the company’s inventory turnover days in the reporting period decreased from 54 days in 2020 to 51 days, and accounts receivable turnover days decreased from 8 days in 2020 to 5 days.In terms of RESEARCH and development, In 2021, Meihua Biological invested 255 million yuan in RESEARCH and development, with a year-on-year growth of 47.21%.