Core Viewpoint - The report from CICC indicates an upward revision of Fufeng Group's 2025 profit forecast by 6% to 2.41 billion HKD, with a new 2026 profit forecast of 2.56 billion HKD, driven by recovering MSG prices and declining corn prices [1] Group 1: 2024 Performance - Fufeng Group's 2024 revenue was 27.757 billion HKD, a year-on-year decrease of 0.9%, with a net profit of 2.312 billion HKD, corresponding to an earnings per share of 0.92 HKD, which aligns with market expectations [2] - The company declared a total annual dividend of 0.40 HKD per share, resulting in a payout ratio of 40% [2] - Revenue by business segments: Food additives 14.365 billion HKD (51.8%), Animal nutrition 8.739 billion HKD (31.5%), High-end amino acids 2.217 billion HKD (8.0%), and Colloid business 1.817 billion HKD (6.5%) [2] - Gross margins for segments: Food additives 10.8%, Animal nutrition 23.2%, High-end amino acids 37.0%, and Colloid business 41.5%, with notable declines in food additives and colloid segments due to new capacity and price drops [2] Group 2: Market Trends - MSG prices are expected to stabilize and recover as new production capacities come online and corn prices slightly increase, with current market prices at 7,319 HKD/ton, up 419 HKD/ton from the 2024 low [3] - Amino acid prices have seen a decline due to the end of overseas and seasonal restocking, but profitability remains relatively strong due to lower raw material costs [3] Group 3: International Expansion - The company plans to establish two overseas production bases and develop sales offices in Vietnam, the USA, and the Netherlands, enhancing its global competitiveness amid anti-dumping challenges in the amino acid sector [4]
中金：维持阜丰集团(00546)“跑赢行业”评级 上调目标价至7港元