# FUFENG GROUP(00546.HK)RESULTS REVIEW：MSG PRICES TO REMAIN HIGH AND AMINO ACIDS MAY BOTTOM IN 2H

> Fufeng Group reported 2018 revenue up 5.6% to Rmb13.8bn and net profit up 33.5% to Rmb1.85bn, with profit helped by a one-off land disposal gain. Analysts expect MSG prices to stay high on low inventories after 2H18 environmental shutdowns cut industry output by 260,000t. Lysine and threonine prices hit record lows in early 2019, and analysts expect them to bottom in 2H19.

- Date: 2019-03-24 · published 2019-03-24T12:00:00.000Z
- Category: market · region China · magnitude low
- Page: https://feedsoft.ai/events/60429-fufeng-group-00546-hk-results-review-msg-prices-to-remain-high-and-amino-acids
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Lysine](https://feedsoft.ai/c/LYSINE.md)

## Why it matters

Tight MSG supply and falling corn costs are supporting margins for amino acid producers, while lower lysine prices reflect ample amino acid supply that feed buyers can use to cut formulation costs. Corn is a minor input here, so its price effect is limited.

## Read by commodity

- CORN: bearish ▼
- LYSINE: neutral

## Sources

- gmg.9fzt.com: https://gmg.9fzt.com/report/HKSE/00546/606739739253.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.