Lotus msg profits big drop huaxia and other institutions have evacuated

Several joys and sorrows. October 26, Lotus msg Three quarterly report let the market surprised, the third quarter of the net profit of 41.7493 million yuan.　　In the fourth quarter of last year, because of the reorganization of rumors and the body of hot money to stir fry Lotus msg, now can only rely on government subsidies to maintain survival.　　In fact, with the Fu Fung Group (00546.HK) strong access to the production of MSG terminal expansion of the pace of growth, the domestic monosodium glutamate competition between the three strong has already undergone drastic changes.　　As is backdoor Wuzhou pearl of another gourmet powder giant, plum Group also in the company of Fu Fung Group quietly lost the position of the industry boss.　　Quite interestingly, Huaxia funds in the three companies have once chosen the least profitable Lotus msg, after all evacuated and replaced by the Wuzhou Pearl.　　Monosodium glutamate Industry What is the story between the three, as the market attention of the Chinese Department of Funds, and why will the wrong with Lotus msg?　　Lotus withered Lotus msg eventually failed to retain the heart of the organization. The third quarterly bulletin showed that the last fund, "GF-China 500 Index Securities Investment Fund (LOF)" has also disappeared.　　The departure of the fund means that the Lotus msg will fall apart after being briefly favored by the agency. From the last four quarters until the first quarter of this year, Lotus Monosodium glutamate continued to encounter institutions and hot money to stir fry, from the beginning of the four quarter of the lowest 3.61 yuan Price, up to November 26 the price of 7.31 yuan.　　In just two months, Lotus msg rose more than 102.49%. And in the November 18, 2009 to 25th in the six trading days, Lotus msg is pulled out of five trading.　　And its behind the hand is the Chinese department of many funds.　　According to the 2009-year Lotus msg, including the Chinese dividend Four fund four quarters of the new into the Lotus msg before the top ten circulating shareholder ranks. And the Chinese Department of the Fund is exclusive three seats.　　One of the Chinese dividend-type open-end funds to occupy 15.8946 million shares of the company's top ten circulating shares fourth, while the Wang Yawei in charge of China's large selection of funds and China Revival stock Fund, respectively, 14 million shares and 10.4899 million shares of the shares of the fifth and seventh.　　In addition, the benefit of the people innovative advantages of the hybrid fund to 7.8702 million shares ranked tenth.　　by Wang Yawei buy signal stimulation, Lotus MSG in the following has been a strong performance, but to the market unexpectedly, the hands of the stock has not covered the heat, Wang Yawei in the first quarter of 2010, began to reduce the lotus powder. Lotus MSG 2010 Quarterly disclosure, in addition to the Chinese market is still holding a selection of 10 million shares, the remaining several Chinese funds have all left the field.　　And the only increase in the current period is the 500 index of Guangdong-China Securities Investment Fund (LOF).　　In the Chinese department gradually evacuated at the same time, Lotus Msg in the two-tier market share price and its financial statements did not appear benign changes. The attendant question is, why should the steady person such as Wang Yawei in Lotus monosodium glutamate also make the short line? Huaxia Fund originally selectedWhat is the reason for choosing Lotus msg? "According to some media reports are based on the Lotus MSG restructuring expected, but I think they buy so much, it is not so simple." A fund manager from a fund company in Shenzhen told our correspondent. According to its introduction, the price of MSG in the last year, after a burst of inflation, "from July per ton six thousand or seven thousand to the end of 10,002." "In the above industry, it seems that the Lotus Msg as the main beneficiary of MSG price, is currently the only one to MSG as the main business of the listed companies, and therefore by the Chinese Department of large-scale configuration."　　However, engaged in the Chinese Department of Lotus Monosodium glutamate operation obviously can be seen, Lotus msg may be called a Wang Yawei to see a stock.　　Subsequently, the benefit of the people of innovative advantages of hybrid funds and the Guangdong-China Certificate 500 index fund of all the departure of all have proved this point. Why does Wang Yawei see the wrong Lotus msg?　　What is the big secret in the small monosodium glutamate industry?　　Why Wang Yawei wrong match?　　The integration of monosodium glutamate industry in recent years appears unusually intense and brutal. Engaged in the production of monosodium glutamate from more than 100 enterprises a few years ago, gradually reduced to the current more than 10, and Fu Fung Group chairman Li Xuechun in the interview with the reporter said, "MSG industry will continue to integrate, will eventually form three to five of the situation."　　"Just two years ago, the plum Blossom Group also occupies the position of the boss of the industry, but since 2009 Fu Fung Group into the terminal msg production and sales, the plum Blossom Group in the year then let the industry boss's throne."　　According to the data published by the China Ferment Industry Association, the current market share in the monosodium glutamate industry is the top three of which is the Fu Fung Group, Plum Blossom Group and Lotus msg, and three companies have a market share of 25%, 20% and 15% respectively. With the increasing concentration of the industry, even with the sharp rise in the price of MSG sales, the performance of Lotus Msg has not seen a sharp rise in expectations.　　This phenomenon even let the Wang Yawei of the Warren is also almost miss.　　Lotus MSG 2009 Annual report shows that the company achieved revenue of 2.479 billion yuan, but the corresponding net profit of only 17.3053 million yuan, up only 38.69% per cent. But even this performance of Lotus MSG has not been maintained. Three quarterly reports, Lotus Msg in the first three quarters of this year to achieve net profit of 138 million yuan, down 27.75% year-on-year.　　This part of the net profit also contains 176 million yuan of government subsidy, and 59.15 million yuan debt restructuring profit and loss. The third quarter of the business data more to explain the problem. When the season Lotus msg net profit only-41.7493 million yuan.　　With the help of these huge government subsidies and debt restructuring gains, the Lotus monosodium glutamate is barely out of the red.　　Lotus MSG The Board of Directors of the company's main profit loss is attributed to the "upstream raw materials prices increased significantly, leading to the rise in the cost of MSG consumption," and other four reasons. According to China Merchants Securities analyst was Wang Xiao Polyester introduced, the main original production of MSGMaterials for corn and coal.　　And Fu Fung Group also admitted that corn and coal accounted for the production costs of monosodium glutamate about six or seven, but the company's chairman Li Xuechun told our correspondent, raw material prices will not affect the company's performance.　　One of the industry concentration to improve the future pricing advantage, the analyst believes that MSG companies can withstand the cost of listing the main reason for pressure. Fu Fung Group 2010 years, the company reported in the period by the MSG business brought about 592 million yuan, gross margin of 22.7%, profitability is much higher than the Lotus Msg.　　The industry's second-largest plum blossom group last year reported that the net profit reached 301 million yuan, also far higher than the Lotus Msg.　　Also affected by the cost rise, Lotus msg Why will be behind the Fu Fung Group and Plum Blossom Group so much? "The first is the Lotus msg is the old state-owned enterprises, many workers, heavy burden, followed by them away from the supply of raw materials, in the cost of more than Fu Fung more suffer." "The more important thing is the reason behind this," said the fund manager, who did not want to be named. "Our reporter found that the FU Fung Group and Plum Blossom Group in Inner Mongolia has a production base of MSG. "This is because Inner Mongolia has a wealth of coal resources and corn resources, and these two goods is precisely the main cost of monosodium glutamate production."　　"The above industry analysis. Another proof of the phenomenon is that the company is currently actively promoting the progress of its Heilongjiang project, and the next step is to expand its production base in Xinjiang, which is rich in corn and coal resources.　　and Plum Blossom Group also has its own production base in Tongliao, Inner Mongolia. "If the Lotus msg does not seek change in the future, it will be difficult to face the direct competition of the two companies." said the fund industry personage frankly.　　and Lotus msg at present 6 yuan of stock price compared to the main business will be transformed into MSG production of the Wuzhou Pearl, the current stock price has reached 28.78 yuan. Another noteworthy phenomenon is that in the Lotus msg a quarterly loss of the Chinese Dividend hybrid open-end fund, now with 5.1841 million shares of the second largest shareholder of Wuzhou Pearl, and the fund into the Wuzhou Pearl time is exactly the second quarter of 2010.