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Zebra consumption news, the 40-year-old Lotus monosodium glutamate will catch the "domestic product craze" in 2023 and become popular again. Not only in the short term, it attracted a large number of users to place orders in the live broadcast room, but more importantly, the company eliminated the public's misunderstanding of MSG and achieved "rehabilitation" for the brand.
On January 10, Lotus Health, the parent company of Lotus MSG, disclosed a gratifying 2023 annual performance forecast: in that year, the company is expected to achieve a net profit attributable to the parent company of 120 million yuan to 150 million yuan, a year-on-year increase of 159.92% to 224.91%; The non-net profit was 115 million yuan to 135 million yuan, a year-on-year increase of 84.40% to 116.47%.
The company concluded that the reasons for the growth of performance are: the implementation of the brand revival strategy, the optimization of the marketing network, the strengthening of marketing and sales work, and the joint promotion of product sales to maintain a high growth rate. Stimulated by this good news, Lotus Health's stock price has reversed its multi-day decline. Yesterday, it rose at the opening, and once rose more than 5% in the intraday, closing at 5.56 yuan / share throughout the day, up 3.48%, and the market value regained 10 billion.
Lotus Health started with monosodium glutamate and is a veritable "king of monosodium glutamate". According to the data, from the establishment of the company's predecessor Zhoukou MSG Factory in 1983 to 15 years later in 1997, the annual output of Lotus MSG increased from 400 tons to 120,000 tons, and the annual output value increased from 9.45 million yuan to 2.23 billion yuan. The company's single monosodium glutamate product ranks first in the world, with a domestic market share of more than 40%.
-- China's monosodium glutamate production
In the past five years, the supply of monosodium glutamate in the domestic market has basically increased steadily. Since 2016, the overall supply of the industry has begun to increase, and the increase is mainly concentrated in Fufeng, and the three main factories have not increased by the same range, and the output of Yipin's factory in Chifeng has contributed more in 2017. In 2018, the supply of monosodium glutamate industry declined significantly, mainly due to the impact of atmospheric environmental protection verification, and the production of key plants was suspended or limited for a long time. According to the data disclosed by Zhuochuang, the output of monosodium glutamate in mainland China in 2020 will be 2.45 million tons.
-- MSG consumption
Mainland monosodium glutamate mainly appears on people's tables in the form of small packages of monosodium glutamate, chicken essence, soy sauce, compound seasonings, etc., and there is no obvious substitute. With the continuous improvement of the domestic per capita income level and the steady progress of the consumption upgrading process, the consumption of monosodium glutamate has been steadily rising. According to the data disclosed by Huaxi Securities, the apparent consumption of monosodium glutamate in mainland China was 1.68 million tons in 2018, and in 2020, the apparent consumption of monosodium glutamate is preliminarily estimated to reach 2.17 million tons.
Looking forward to the future development trend of the monosodium glutamate industry, Chen Yingying, an analyst at Zhuochuang Information, said that on the supply side, the output of monosodium glutamate in the next five years will be more concentrated in Inner Mongolia, Northeast China and other regions, of which the proportion of Northeast China will gradually increase, mainly because large enterprises continue to expand production capacity, and the industrial layout will shift to areas where raw materials are concentrated. In the case of a slightly larger production capacity base, large enterprises with cost advantages can guarantee a higher operating rate and withstand slightly lower selling prices. In the next five years, the overall output of the monosodium glutamate industry will maintain a high base, which is expected to be more than 2.3 million tons.
Chen Yingying believes that in terms of market demand, the explicit consumption of the monosodium glutamate industry has declined, and in terms of invisible consumption, innovation in the field of flavor ingredients is very active. It is expected that the demand for monosodium glutamate will continue to increase in the next five years, with an average annual growth rate of 1.4%.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "Analysis Report on the Development Prospects and Investment Strategic Planning of Global and Chinese Monosodium Glutamate (Monosodium Glutamate) Industry" by Qianzhan Industry Research Institute.
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