Opportunity! Vitamin Prices Rise Significantly

Recently, prices of products such as vitamin A and vitamin E have surged significantly. According to Baichuan Yingfu data, since the outbreak of Middle East conflicts at the end of February, vitamin A prices have risen from 59 yuan/kg to 80 yuan/kg, an increase of 35%; vitamin E prices have increased from 57 yuan/kg to 79 yuan/kg, a rise of 38%.

Regarding the reasons for the price increases, Pacific Securities (601099) stated that Europe has substantial capacity for vitamin A and vitamin E production. The ongoing Middle East conflict has led to significant fluctuations in oil and gas prices; additionally, the closure of the Strait of Hormuz has put considerable pressure on natural gas supplies to Europe, potentially affecting the stable production of products like vitamin A and vitamin E.

China Post Securities also noted that the prices of vitamin raw materials were at historically low levels before the recent increases. The rise in upstream chemical raw material costs and shipping prices has strongly incentivized industry players to control production and raise prices. Since vitamins are mainly used as feed additives with a very low cost proportion, downstream consumers are less sensitive to price changes, making price hikes easier and with more room for increases.

Public information shows that there are about seven major global producers of vitamin A, with European-based BASF having an annual capacity of approximately 14,000 tons, accounting for about 27% of the global market share, ranking first. Other important producers include Sinopharm (002001), Adisseo (600299), and Zhejiang Medicine (600216), with capacities of 8,000, 5,000, and 5,000 tons per year, respectively. The global supply structure for vitamin E is similar to that of vitamin A, characterized by oligopoly, with European capacity accounting for about 40%.

According to data from Securities Times and Data Treasure, there are a total of 16 stocks related to the vitamin concept. Among them, Sinopharm is the only company with a market capitalization exceeding 100 billion yuan. Since the Chinese New Year, the company’s stock performance has been relatively strong, with a peak increase of over 30% after the holiday.

Huatai Securities stated that Sinopharm’s capacity for amino acids and vitamins benefits from significant advantages in energy, labor, and manufacturing costs compared to overseas companies. As overseas supply stability declines and potential exits occur, the company’s global market share is expected to continue growing.

In the past year, eight stocks including Sinopharm, Weixin Kang (603676), Minsheng Health, and Jindawei (002626) have been surveyed by institutions five or more times.

In January, Sinopharm indicated that the prices of its main nutritional products are expected to fluctuate in 2025 due to supply and demand factors. The company is actively expanding domestic and international markets through production and sales coordination. Since Q4 last year, vitamin prices have stabilized and begun to recover.

In February, Weixin Kang reported that its injectable multivitamins (12) were selected in multiple provincial alliance procurement programs, including the Henan nineteen-province alliance.

In January, Jindawei stated that the ubiquinone Q10 market has broad prospects, with steady demand in overseas markets such as the U.S., and gradually releasing demand in domestic and emerging markets. After completing its expansion and renovation projects, the company plans to gradually increase capacity based on market demand and production ramp-up.

Regarding performance, six concept stocks have released 2025 earnings forecasts. Brothers Technology (002562) and Shengda Biotech (603079) announced pre-increases; Nengte Technology forecasted a turnaround; Adisseo reported a slight decline in net profit; Guangji Pharmaceutical (000952) and Xinnuowei (300765) forecast losses.

Brothers Technology expects net profit attributable to the parent in 2025 to be between 85 million and 110 million yuan, a year-on-year increase of 108.26% to 169.52%. The company stated that the growth is mainly due to higher prices for some vitamin products, increased sales of related projects like phenylketonuria, and reduced costs for some products, leading to overall improved profitability.

Shengda Biotech projects a net profit attributable to the parent of 50 million to 65 million yuan in 2025, a year-on-year increase of 69.93% to 120.90%. During this period, the company improved operational efficiency and cost structure through refined management and technological upgrades, deepened its differentiated competitive strategy, expanded market development, and seized market opportunities, boosting overall profitability.

Nengte Technology expects to turn losses into profits in 2025, with net profit attributable to the parent around 200 million to 250 million yuan. The company stated that its wholly owned subsidiary, Nengte Technology Co., Ltd., maintains good operations in vitamin E, generating profits of no less than 660 million yuan, which will significantly boost the company’s 2025 performance compared to the previous year.

Adisseo achieved revenue of 17.231 billion yuan in 2025, a 10.92% increase; net profit attributable to the parent was 1.155 billion yuan, down 4.13%. The company plans to distribute a cash dividend of 1 yuan (tax included) per 10 shares to all shareholders. Adisseo is a key player in the vitamin market, offering a full range of vitamin products including A, B, D3, E, and H, with about 20% of capacity in the feed vitamin A market.

(Edited by: Zhang Yan)

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