Investment Rating - The report maintains an "Outperform" rating for Fufeng Group [3][12]. Core Insights - Profit attributable to shareholders for 2024H1 decreased by 32.3% year-on-year, with an interim dividend declared at 18 HK cents per share [8][12]. - The company's operating revenue for the first half of 2024 decreased by 1.6% year-on-year to approximately RMB 13,368 million, primarily due to a decline in revenue from the Colloids and Others segment [8][12]. - Gross profit decreased by 22.3% year-on-year to RMB 2,298.1 million, mainly due to a decrease in gross profit from the Food Additives and Colloids segment [8][12]. Revenue Breakdown - In the Food Additives segment, revenue was RMB 6.917 billion, an increase of 5.46% year-on-year, with MSG revenue at RMB 5.262 billion, showing a price decrease of 13.8% and a volume increase of 22.2% [9][10]. - The Animal Nutrition segment saw revenue of RMB 4.195 billion, up 2.54% year-on-year, with Threonine revenue increasing by 29.9% to approximately RMB 1,149.3 million [9][10]. - The High-grade Amino Acids segment reported revenue of RMB 1.075 billion, a 29.96% increase year-on-year, with a gross margin of 36.8% [9][10]. - The Colloids segment experienced a revenue decline of 44.93% to RMB 899 million, with xanthan gum prices falling by 48.2% [9][10]. Export Performance - Export quantities of Threonine and 98% Lysine increased significantly, with 362,000 tonnes and 548,000 tonnes exported in the first half of 2024, representing increases of 43% and 24% year-on-year, respectively [10][11]. Strategic Developments - The company is actively pursuing international expansion and plans to develop three overseas regional marketing centers, with a focus on establishing a plant in the US [11][12]. - Plans to accelerate the development of a new 98% Lysine production facility and introduce new premium amino acid products are underway [11][12]. Earnings Forecast - The forecasted EPS for 2024, 2025, and 2026 are RMB 1.21, RMB 1.33, and RMB 1.48, respectively [12]. - The target price is set at HKD 6.51, based on a PE ratio of 4.95 times for 2024 [12].
阜丰集团：2024H1股东应占溢利同比减少32.3%，公司宣派中期股息每股18港仙