| Of vitamin E manufacturing industry: oligopoly | | | | assume that the future growth rate of 3% growth in |
| valuation of low-lying land holdings of two shares of | | | | 09,2010 years of no new capacity situation, then the |
| Vitamin steady growth in demand. Vitamins for the | | | | capacity utilization rose to 95%, 98% in order to |
| international feed, medicine and health care products | | | | reach a balance of supply and demand, the |
| market, the main staple products. According to | | | | theoretical value in the production process is very |
| INSEAD University professor Philip M. Parker of the | | | | difficult to achieve. Therefore, the next two years |
| potential demand on the global study of vitamin | | | | the supply of vitamin E will remain tight. Technical |
| forecast 2009-2011, Vitamin requirements for the | | | | Barriers to higher, the key intermediates difficult to |
| 2.84% average annual growth rate in 2011, the | | | | obtain, the new capacity is investing heavily in the |
| world's feed, medicine, nutrition and health care | | | | short term the existing manufacturers of vitamin E |
| products, food, cosmetics and other industries | | | | does not significantly increase capacity, both vitamin |
| Vitamin total demand will reach 3.15 billion. 70% for | | | | E affect the supply of key factors. |
| vitamin feed additives, vitamins, therefore the | | | | Vitamin E the next two years will be to maintain high |
| demand by the downstream cyclical changes in feed | | | | business cycle. Comparing supply and demand, |
| industry and animal husbandry greater impact. 2000 | | | | industry concentration, price understanding the |
| -2,008 global demand for feed an average annual | | | | extent of the downstream demand for feed industry |
| growth rate of 2.2% in 2008, feed production | | | | growth, and other changes in parameters indicate |
| growth rate 2.9%, China, Brazil and other emerging | | | | ,2-3 years of vitamin E to maintain a high level of |
| markets, strong demand growth in mature markets | | | | profitability, return to the 90s a long time the |
| to effectively compensate for the feed industry and | | | | high-boom cycle is entirely possible. |
| livestock decline in demand. Therefore, we judge | | | | Optimal investment targets of vitamin E - Zhejiang |
| from the lower reaches of the growth in demand, | | | | Medicine, new and adult. Zhejiang NHU both medicine |
| vitamins future needs of the average annual growth | | | | and technology leadership, but the Zhejiang Medicine |
| rate of close to 3% is a reasonable expectation. | | | | positioned as an integrated pharmaceutical |
| Vitamin E the most investment value. Vitamin family, | | | | manufacturing company dedicated to chemical |
| vitamin C, vitamin E, vitamin A has become an | | | | synthesis of pharmaceutical and biotechnology R |
| international vitamin market, the three pillars of | | | | & D and manufacture of drugs. In addition to |
| products, with annual sales total about 20 billion U.S. | | | | synthesis of vitamin E, the Zhejiang Pharmaceutical |
| dollars. The vitamin E supply and demand balance, | | | | drugs are chemical agents and biological medicine. NHU |
| technical barriers, industry concentration, the highest, | | | | defined as domestic first-class fine chemical |
| hence, have the best investment value. | | | | production enterprises, in addition to vitamin raw |
| Capacity expansion is limited, vitamin E supply is still | | | | material medicine, the company has R & D and |
| tight. Production and marketing of vitamin E is mainly | | | | manufacture of flavors and fragrances and |
| DSM, BASF, Zhejiang Medicine, new, and into four | | | | pharmaceutical and chemical intermediates. Two |
| oligopolistic suppliers for a total design capacity of | | | | companies for the entire vitamin E manufacturing |
| about 6.7 million tons. In 2008 of vitamin E affected | | | | industry, is currently the valuation of A shares of |
| by shutdowns, environmental and other factors | | | | Medicine Forum depressions. The two companies with |
| affect the total output of four about 5 million tons, | | | | strong profitability of vitamin E to support R & |
| capacity utilization was 75%, 15% of the supply and | | | | D to develop new product areas and a new profit |
| demand gap, which is in 2008 of vitamin E the root | | | | growth point, therefore, we recommend vitamin is |
| causes of rapidly rising prices. Vitamin E needs to | | | | not the only reason for the company. |