MEIHUA BIO、MeiHua Group(SH:600873)2024-08-02 01:01Investment Rating - The report maintains an "Outperform" rating for the company [6]. Core Views - The company's Q2 performance met expectations, with revenue of 12.643 billion yuan (YoY -7%) and a net profit of 1.474 billion yuan (YoY +8%) [6]. - The company is expected to benefit from a seasonal increase in amino acid prices, with a positive outlook for the second half of 2024 [6]. - The company has shown resilience through diversified operations, with a focus on improving operational efficiency and maintaining strong cash flow [6]. Summary by Sections Financial Performance - For Q2 2024, the company achieved a revenue of 61.56 billion yuan (YoY -7%, QoQ -5%) and a net profit of 7.22 billion yuan (YoY +27%, QoQ -4%) [6]. - The gross margin for Q2 was 19.68%, showing an increase of 2.73 percentage points YoY and 0.35 percentage points QoQ [6]. - The company reported a net profit margin of 11.73%, up 3.14 percentage points YoY and 0.14 percentage points QoQ [6]. Revenue Breakdown - In H1 2024, the revenue from various segments was as follows: fresh flavor agents (3.88 billion yuan, -13% YoY), feed amino acids (5.47 billion yuan, +15% YoY), and pharmaceutical amino acids (2.50 billion yuan, -17% YoY) [6]. - The average prices for key products in H1 2024 were: monosodium glutamate at 8,058 yuan/ton (YoY -13%), 98.5% lysine at 9,974 yuan/ton (YoY +15%), and threonine at 10,372 yuan/ton (YoY +5%) [6]. Future Outlook - The report forecasts net profits for 2024-2026 to be 3.317 billion yuan, 3.685 billion yuan, and 4.089 billion yuan respectively, with corresponding PE ratios of 9, 8, and 7 [6][7]. - The company is expected to see price increases in lysine and threonine as the fermentation industry enters a maintenance season, leading to reduced inventory and improved pricing [6]. Operational Efficiency - The company has improved its inventory turnover days to 47.99 days in H1 2024 from 56.44 days in 2023, and accounts receivable turnover days increased to 8.42 days from 7.10 days [6]. - Capital expenditures in H1 2024 were approximately 1.049 billion yuan, with ongoing projects aimed at expanding production capacity [6].