The Impact Of Raw Material Price On The Stock Price Of Bio - Fermented Listed Companies

Raw material cost pressures are raw materials processing and resource-based processing enterprises the most direct and maximum operating pressure,The price of raw materials has become the important focus of investor concerns related to the listed company performance. The gross profit margin characteristics of raw materials processing and resource-based processing enterprises is influenced by a single raw material costs, the products are the raw material for downstream enterprises. For example, the iron and steel industry, non-ferrous metals industry, petrochemical industry, chemical industry and the emerging bio-fermentation industry. This paper selects large fermentation listing Corporation Angel Yeast for case analysis. Characteristics of Angel yeast is wool interest rate is greatly affected by the price of a single raw material molasses, and the products are raw materials for downstream food industry. From the beginning of2010, with the sustained rise in sugar commodity prices, as a byproduct of sugar molasses have gone (costs from molasses consumption accounted for30%-40%of the total cost of raw materials yeast), the direct effect of Angel Yeast wool interest rate, thereby affecting the angel’s share price.In this paper, the theoretical basis of the efficient market hypothesis, analysis of the impact of raw material prices on the spot market and futures market price of production and sales, cost profit, then the stock price on the manufacturing industry listing corporation. Subsequent continuous Zhengzhou sugar futures prices and China Sugar Index (CSI) sugar spot price index and Angel Yeast Corporation share price Jan.4,2007to March22,2013the actual date data as the basis of nearly1480days. At the same time, taking into account the effects of sugar spot and the company’s operations and other factors.Time series data for the three groups were analyzed to see if the spot price of sugar and the presence of Angel Yeast stock price correlation. Using descriptive statistics, through the co-integration test demonstrated causality, error correction model and other methods. To prove whether there exist cointegration relationship between sugar futures and spot prices and Angel yeast stock price, get the correlation between the spot price of sugar and Angel Yeast Group’s stock price. Through theoretical analysis and empirical research trying to grasp the intrinsic relationship between commodity prices and the stock market between the companies, Thus study the impact of price fluctuations in raw material prices for Angel Yeast stock.Conclusion the main research conclusions as:first, there is a long-run equilibrium relationship with Angel Yeast as an example of the commodity markets in sugar futures prices and spot Angel Yeast stock prices, although the decisive factor of sugar price volatility is not caused by the Angel yeast to stock price fluctuations. The study also shows, when a study is more dependent on raw material prices or resource stocks when processing enterprises, to investigate the reason and its volatility fluctuations in the price of raw materials is very important.