Xinhecheng (002001) In-depth Research Report: An Excellent Example of Forging ahead and Innovating to Develop China’s Fine Chemical Industry

Xinhecheng (002001) In-depth Research Report: An Excellent Example of Forging ahead and Innovating to Develop China’s Fine Chemical Industry

Xinhecheng is a leading company in the conventional fine chemical industry.

The company adheres to the concept of innovation-driven and balanced, sustainable development, and its business covers the fields of nutritional products, flavors and fragrances, APIs, and new polymer materials.

The company’s various business segments have developed synergistically. Among them, the core business vitamins and flavors and fragrances account for more than 80% of the company’s revenue and have a high market share.

Based on vitamin production technology, the company adheres to independent research and development and technological innovation, and constantly improves the industrial chain.

R & D innovation-driven growth companies.

The gene of innovation and development, the “teacher culture” is deeply evaluated by the company.

Since its establishment, the company has always adhered to the road of independent innovation.

The core products laid out at each stage of development were those that could not be self-sufficient at the time, were extremely difficult to produce, and had blank interiors.

Such as VA, VE, citral, aromatic alcohol, PPS, methionine and so on.

In the long-term development, the company has accumulated the most valuable R & D and engineering experience in the chemical industry, and has brought out a high-efficiency, high-output, practical chemical R & D team.

The company’s innovative research and development has also received rich returns, and the ROE level has always been at the top of the big chemical industry pyramid.

A platform company with an integrated industrial chain.

Focusing on the upstream and downstream industry chains, downstream application industries and customers, the company focuses on the three major areas of nutrition, flavors, and new materials, and constantly improves product lines and layouts to form an integrated and platformized development trend.

Integration has strengthened the company’s stable supply chain and cost advantages.

In recent years, various production accidents have occurred frequently in the industry. The company relies on safe operation to continue to provide customers with stable product supply, achieving a win-win situation for the interests of customers and shareholders.

With integration and lean management, the company’s production and operation costs have also achieved the lowest in the industry, and it has continuously deepened its scale moat.

The company’s products continue to decline, and its profitability does not depend on any one species. Even the price of vitamin products fluctuates greatly. However, the company’s multi-product strength, the east is not bright and the west is bright. It always maintains alternative profitability, showing a chemical platform company.Unique advantages.

Continue to maintain high-intensity capital expenditure, and forge ahead with entrepreneurial spirit has not been lost.

The company has been expanding in Weifang base and Heilongjiang base in recent years, including new 25-inch methionine project, Heilongjiang bio-fermentation project, 2X2 first-class nutrition project, and annual output of 11,000 tons of nutrition products and 9,000 tons of fine chemicals projects.Ten billion.

Ultra-high capital expenditure is a solid foundation for maximizing the company’s performance growth in the future, and it is also an outstanding embodiment of the company’s determination to forge ahead.

Estimates and profit forecasts.

We estimate that the company’s 合肥夜网 net profit for the years 19-21 will be 22 respectively.



30,000 yuan, the corresponding EPS is 1.



78 yuan, currently the corresponding PE is expected to be 25/18/14 times; combined with 20-year performance and 20X PE level, a target price of 28.

77 yuan, maintaining the “recommended” level.

Risk warning: product prices rise sharply; downstream demand grows sharply; environmental protection and production risks.