MEIHUA BIO、MeiHua Group(600873)2024-07-30 05:30Investment Rating - The report maintains a "Recommend" rating for Meihua Biological (600873 SH) [1][2] Core Views - Meihua Biological achieved a YoY increase of 8% in net profit attributable to the parent company in H1 2024, with overseas site selection strengthening platform layout [1] - The company's multi-category layout demonstrates strong anti-cyclical characteristics, with feed amino acids showing significant growth [1] - Meihua Biological is expanding production capacity and actively exploring overseas opportunities to enhance its platform-based enterprise capabilities [1] Financial Performance - H1 2024 revenue reached 12 643 billion yuan, a YoY decrease of 6 96% [1] - Net profit attributable to the parent company in H1 2024 was 1 474 billion yuan, a YoY increase of 7 51% [1] - Q2 2024 revenue was 6 156 billion yuan, a YoY decrease of 7 26%, with net profit attributable to the parent company increasing by 26 68% [1] Business Segments - Flavor enhancers (monosodium glutamate, nucleotides, etc) revenue decreased by 12 72% YoY to 3 880 billion yuan in H1 2024 [1] - Feed amino acids (lysine, threonine, etc) revenue increased by 14 99% YoY to 5 472 billion yuan in H1 2024 [1] - Pharmaceutical amino acids revenue decreased by 16 66% YoY to 250 million yuan in H1 2024 [1] - Large raw material by-products revenue decreased by 22 74% YoY to 1 912 billion yuan in H1 2024 [1] Capacity Expansion - New projects include Tongliao MSG expansion and technical renovation, Xinjiang isoleucine technical renovation, and xanthan gum process improvement projects [1] - Jilin lysine project has completed project approval and is expected to start production in July 2025 with an annual capacity of 600 000 tons of 80% lysine sulfate [1] Financial Forecasts - 2024-2026 net profit attributable to the parent company is forecasted to be 3 029 billion yuan, 3 144 billion yuan, and 3 358 billion yuan respectively [1] - 2024-2026 EPS is expected to be 1 06 yuan, 1 10 yuan, and 1 18 yuan respectively [1] - Current PE ratios (as of July 29, 2024) are 10X, 9X, and 9X for 2024-2026 respectively [1]