CNDSN3 month 26 days [] (Tencent News) in 2014, Dong'e E-Jiao, achieve operating income 4009000000 yuan, drop compared to the same period 0.18%; attributable to shareholders of the listing Corporation's net profit of 1366000000 yuan, a year-on-year growth of 13.52%, EPS is 2.09 yuan.

Steady growth performance. The core business of the parent company business income of 3317000000,grew 16.57%, gross margin declined 4.86 percentage points to 69.33%. Integrated gross margin of 65.54%,up 2.09 percentage points; period cost rate control is good, among them, the rate of cost of sales fell 1.57percentage points to 18.74%, the management fee rate slightly rise 0.34 percentage point to 9.27%.

The traditional price effect of donkey hide gelatin, donkey hide gelatin health products rapid growth. Sub products, products Ejiao income 3587000000 yuan, a year-on-year increase of 16.82%, accounting for89.47% of operating income; gross margin of 71.06%, 4.64 percentage points year-on-year decline, is expected to begin 15 years Ejiao gross margin will be with the price effect of the bottom rebound. Our calculations, donkey hide gelatin block sales grew more than 10%, compound E-Jiao slurry sales essentially flat year on year; Ejiao health products income 354000000, year-on-year growth of 17.09%, which is expected to peach Ji income of about 250000000 yuan, a year-on-year growth of about 20%, the growth rate slowed slightly, but we are still optimistic about the company as a third star products in the future to promote progress and the market space.

Profit forecasts and investment rating. Dong'e donkey hide gelatin major profit growth point: 1, donkey hide gelatin block continued steady price increases, price increases profit contribution. 2, compound E-Jiao slurryhospital terminal completed various provinces and cities for the record price rises, the OTC terminalpreferential price to enhance the enthusiasm of the channel promotion, step by step implementation factory price hike. 3, to the peach blossom Ji is the representative of the donkey hide gelatin health products, newsmall molecule donkey hide gelatin and nine tributary glue promotion strength to increase, the future is expected to become a new profit growth point. 4, actively promote the new type of electric, straight battalionand other marketing mode. We predict, company 2015-2017 year EPS 2.34 yuan, 2.74 yuan, 3.23 yuan, the current share price corresponding to PE 18, 15, 13 times. We are optimistic about the company in a strong brand, donkey hide gelatin industry leading position and pricing advantage, to maintain "overweight" rating. *

(original title: Dong'e E-Jiao price effect first growth robust)

Editor: Blue