NHU(SZ:002001) Guolian Securities·2024-08-24 08:03Investment Rating - The investment rating for the company is "Buy" (maintained) [6]. Core Views - The company reported a significant increase in performance for H1 2024, achieving revenue of 9.845 billion yuan, a year-on-year increase of 33%, and a net profit attributable to shareholders of 2.204 billion yuan, up 49% year-on-year [10]. - The strong performance is attributed to the recovery in the vitamin market and the release of 300,000 tons of methionine production capacity [10]. - The average prices for vitamins A and E in H1 2024 were 84 and 68 yuan per kilogram, respectively, showing a decline of 6% and 9% year-on-year, but with an upward price trend observed by the end of June [10]. - The average price for methionine in H1 2024 was 21.7 yuan per kilogram, reflecting a 26% increase year-on-year [10]. Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 5.346 billion yuan, a 40% increase year-on-year, and a net profit of 1.335 billion yuan, exceeding the forecast [10]. - The core subsidiaries reported net profits of 1.18 billion, 570 million, and 670 million yuan, representing increases of 161%, 38%, and 12% year-on-year, respectively [10]. Market Conditions - The vitamin market has shown significant improvement, with exports of vitamins A and E increasing by 17% and 30% year-on-year [10]. - The market prices for vitamins have surged due to a production halt from BASF, with prices reaching 330 and 163 yuan per kilogram as of August 22, 2024, marking increases of 355% and 173% since the beginning of the year [10]. Business Growth - The methionine business is expected to grow due to low costs and significant capacity expansion, with ongoing projects to increase production [10]. - The company is also advancing its adiponitrile project, which is expected to align with the domestic production trend of nylon 66, further enhancing growth potential [10]. Future Projections - Revenue projections for 2024-2026 are 20.93 billion, 26.02 billion, and 27.68 billion yuan, with year-on-year growth rates of 38%, 24%, and 6% respectively [11]. - Net profit projections for the same period are 5.692 billion, 7.906 billion, and 8.567 billion yuan, with growth rates of 110%, 39%, and 8% respectively [11]. - The expected EPS for 2024-2026 is 1.84, 2.56, and 2.77 yuan per share, with a three-year CAGR of 47% [10].