Gelatin block ex-factory price increase 5%

Yesterday, a Guangdong distributor told reporters that from 24th onwards all Donga donkey-hide-gelatin donkey-hide-gelatin rose 5%, the current half a kilo of donkey-hide gelatin block price has risen to 136.2 yuan, equivalent to a year ago the price of twice times. However, the retail price of the donkey-hide gelatin block will not rise.　　Yesterday, Donga Donkey-hide gelatin (000423) rose 0.45%. The cumulative increase of 38% last night Donga Donkey-Hide gelatin issued by the announcement confirmed the above news, to the product of repeated price increases, the company to explain the main raw material donkey-hide gelatin is difficult to predict the purchase price, and the market cost investment gradually increased.　　It is reported that this year has come to Donga gelatin for the third time to improve the ex-factory price, since the beginning of the cumulative increase of 38%. A Donga donkey-hide gelatin management staff, in Guangdong, for example, donkey-hide gelatin block accounted for 80% of the company's sales. In recent years donkey skin resources are dwindling, the donkey-hide gelatin block is in short supply state.　　But this time the price is not targeted at consumers, mainly compressed pharmacies and other intermediary interests. Terminal Market or in the peak season to raise prices terminal really do not raise? Some retail pharmacies in Guangdong say this is the market strategy for Donga gelatin. Because it is the off-season, the terminal price is bound to affect sales. and 5% of the price increase for dealers and pharmacies are still can be internal digestion.　　But once the mid-autumn Festival and other peak season, the retail price of donkey-hide gelatin will definitely improve. Investment securities analyst said that Donga gelatin (000423) 2010-2012 net profit growth of 44%, 42%, 40%,eps respectively 0.87 yuan, 1.23 yuan, 1.72 yuan.　　45 times times for 2010 to forecast PE, maintain a "strongly recommended-A" rating and 40 yuan target price, recommended long-term investors involved.　　Does the reporter observe the risk of frequent price increase? Since 2007, the donkey-hide gelatin market in China has grown at a rate of 30% per annum and has been in stock.　　Best-selling Health products life cycle is often more than 5-6 years, donkey-hide gelatin belongs to Traditional Chinese medicine, its life cycle may be a little, but after frequent price increases, will lead to consumer aversion, thereby shortening its life cycle? Even more worrying is that Donga donkey-hide gelatin as a leader, each price increase will cause other brands in the market, the price is relatively stable, the consumer will turn to some of the brand of donkey-hide gelatin?