The double festival is approaching, and sea cucumbers, which have been transformed from "luxury food" to "dietary care products", have become a highlight of festival consumption. Although the "autumn catch" of sea cucumbers has not yet come, the price of sea cucumbers has been on the rise recently. In particular, the high temperature sea cucumbers in Liaoning, one of the main products of sea cucumbers, died in large areas in summer, and the "autumn catch" of sea cucumbers has become a high probability event. A number of research reports pointed out that sea cucumber may usher in a 2-3 year bull market. At the end of August, the price of sea cucumbers in the Weihai Sea Products Wholesale Market was as high as 166 yuan per kilogram. Dongfang Ocean, which is driven by the dual-wheel development of sea treasure farming and the big health industry, will benefit from the rise of sea cucumbers on the one hand to increase its breeding income, and on the other hand, it is expected to benefit from the ongoing merger and acquisition work of Xinhong Medical, which will drive its rapid expansion and preemption of big health. market.
Sea cucumber rises to increase farming income
Sea cucumber is an important traditional seafood product in my country, among which sea cucumber with high nutritional value has been known as the first of the "Eight Treasures of the Sea" since ancient times. At present, my country's sea cucumber industry has basically formed a three-pronged competition pattern of Shandong, Liaoning and Fujian. From the mid-1990s to 2012, sea cucumber grew rapidly as a "luxury food", and then the policy impact led to an imbalance in the supply and demand structure. In 2016, with the withdrawal of small and medium-sized farmers and the sharp reduction of "northern ginseng and southern cultivation", coupled with the upgrading of consumption and the transformation of sea cucumber into a "food therapy and maintenance product" valued by ordinary consumers, especially the middle-aged and elderly, the demand for sea cucumber began to increase, and in 2016 The production reduction caused by the continuous high temperature and rainfall in the summer of 2019 has given more impetus to its price increase. In 2016, the price of sea cucumber experienced a round of sharp rises, from a minimum of 80 yuan per kilogram to about 130 yuan. A slight decline was maintained in 2017. However, the high temperature this summer has caused a significant reduction in sea cucumber production in Liaoning, which may usher in a 2-3-year bull market for sea cucumbers.
Shenwan Hongyuan Research Report pointed out: From 2013 to 2016, China's sea cucumber production was stable at around 200,000 tons. In 2016, China's sea cucumber output was 204,000 tons, of which Liaoning, Shandong, and Fujian sea cucumber output were 74,000, 93,000, and 26,000 tons, respectively. The sea cucumber cultivation area in Liaoning Province is about 1.844 million mu, of which the pond cultivation area is about 985,000 mu. According to preliminary statistics, the loss area of sea cucumbers in this disaster will reach 950,000 mu, accounting for half of the sea cucumber cultivation area in Liaoning Province. The pond culture of sea cucumbers is expected to lose 68,000 tons of output, accounting for about one-third of the total annual output, and the supply of sea cucumbers will be significantly reduced. At the same time, as the sea cucumber seedlings bred in the ponds have also been significantly affected, there is also a shortage of sea cucumber seedlings required for "winter raising sea cucumbers" in Fujian (most sea cucumber seedlings come from Liaoning and Shandong regions). May-June) sea cucumber production is also difficult to increase. In November, sea cucumbers from Liaoning and Shandong entered the season of "autumn fishing", and the price of "autumn fishing" sea cucumbers was generally higher than that of "spring fishing" sea cucumbers (the peeling rate of "autumn fishing" sea cucumbers was 53-54%, which was higher than that of "spring fishing" sea cucumbers. rate 48-49%). The production reduction of sea cucumber superimposes the peak consumption season (a considerable part of sea cucumber consumption is used for "winter tonic"). It is expected that the price of fresh sea cucumbers during the "autumn harvest" (November-December) period of sea cucumbers will increase significantly and can be maintained until at least the first half of 2019. At present, some companies in the market plan to increase the price of dried sea cucumbers in stock in September. Although it has not yet reached the time when sea cucumbers are caught in large quantities, the prices of fresh sea cucumbers and ready-to-eat sea cucumbers across the country have risen. On August 7, 2018, the price of fresh sea cucumbers cultivated in greenhouses in the Shandong Weihai Seafood Wholesale Market was 124-126 yuan/kg. On August 10, the Ministry of Agriculture reported that the bulk price of sea cucumbers was 130 yuan/kg. It is also understood that at the end of August, the price of sea cucumbers in the Weihai Sea Products Wholesale Market was as high as 166 yuan per kilogram.
The sea cucumber aquaculture of Dongfang Ocean is mainly based on the bottom sowing of "seabed pastures". The company has 48,500 mu of national first-class high-quality sea area, and the company's aquaculture waters are far away from urban areas, far away from pollution sources, and have no organic matter discharge. In addition, the company also owns more than 4,000 mu of sea cucumber intensive cultivation pond and 60,000 square meters of sea cucumber seedling and growing workshop. Shenwan Hongyuan Research Report pointed out that the price of sea cucumbers has risen, and companies that have not been reduced in production have become beneficiaries, such as Oriental Ocean. Based on the company's existing bottom-seeded aquaculture area, it is estimated that the annual output of fresh sea cucumbers can reach more than 1,400 tons.
According to the company's 2018 interim report, the sales revenue of sea cucumbers in the first half of the year has reached 182 million yuan, accounting for 39.81% of the company's total revenue, and the gross profit margin has increased by 3.59% compared with the same period in 2017, reaching 54.16%. With the "autumn harvest" approaching, the rise in sea cucumber prices in the second half of the year is expected to bring better benefits to the company.
Merger and acquisition of Xinhong Medical to expand the scale of the health industry
The company announcement shows that the acquisition of Xinhong Medical is still ongoing. If this move is successfully implemented, it means the company's next step in the field of "big health" focusing on "precision medicine" and "in vitro diagnosis". Since 2016, Oriental Ocean has successfully acquired 100% of the shares of Avioq in the United States, and has been involved in the "big health" field focusing on "precision medicine" and "in vitro diagnosis", and has continued to deploy in this field. In the same year, it acquired 60% equity of Yantai Yanjing International Hospital Co., Ltd. and changed its name to "North Children's Hospital (Yantai) Co., Ltd.". It was officially put into operation at the end of 2016. The company has also invested 189 million yuan to set up three wholly-owned subsidiaries (Avike Bio, Precision Gene, Tenren Laboratory) and two holding subsidiaries (Mass Spectrometry Biology, Medical Research Institute), and in May 2016, respectively Obtained three types of medical device business license.
In particular, the performance of Avioq in the United States has grown rapidly. The 2018 mid-year report shows that in the first half of the year, Avioq's net profit was as high as 34.6394 million yuan, close to its total net profit in 2017. Avioq's main products include HIV-I/II (AIDS), HTLV-I/II (leukemia) and other diagnostic reagents, and the products are mainly sold to the United States, the European Union, Africa and other countries and regions. Among them, HIV-I reagent passed FDA certification in 2009; HTLV-I/II reagent passed FDA certification and CE certification in 2012, and obtained sales approval from Health Canada in 2013. In addition, Oral Fluid Collection independently developed by Avioq Device (saliva collector) has obtained the patent authorization of the United States Patent Office, and has developed a new generation of HIV (AIDS) diagnostic reagents (applying for FDA certification) and a new generation of multiple joint blood screening products, among which the new generation of HIV (AIDS) diagnostic reagents The reagent can simultaneously detect and diagnose HIV-I and II types, type and determine the time of infection, and the reagent testing technology has reached a leading position in the world.
Xinhong Medical, which the company intends to acquire this time, is a new third board company. Its main business is to provide comprehensive services of in vitro diagnostic products and professional technical support to various medical laboratories (mainly the laboratory departments of hospitals). After years of accumulation, Xinhong Medical has established a relatively complete service network in the Tianjin-Hebei region, with a service team of nearly 100 people. Xinhong Medical's end users are mainly second-level and above hospitals in the Tianjin-Hebei region, and currently has a number of customers. More than 200. Among them, key customers mainly include Tianjin Medical University General Hospital, Tianjin Medical University Second Hospital, Tianjin Cancer Hospital, Hebei University Affiliated Hospital, Hebei Medical University Third Hospital and other well-known tertiary A-level hospitals.
If the company's acquisition of Xinhong Medical is successful, it will undoubtedly give wings to the promotion and sales of Oriental Ocean's big health products in China, and will have a good synergy with the company's existing R&D and production system, thereby promoting the company's big health business. increase.