LHG(600186) 太平洋·2024-09-27 00:21Investment Rating - The report assigns an "Accumulate" rating to Lianhua Holdings with a target price of 3.6, compared to the last closing price of 3.22 [1][4]. Core Views - Lianhua Holdings has shown stable growth in its monosodium glutamate (MSG) business, with a significant increase in market share and successful new product development. The company is also expanding its computing power services [1][2]. - In H1 2024, the company achieved a revenue of 1.222 billion yuan, representing a year-on-year increase of 25.46%, and a net profit of 101 million yuan, up 101.03% year-on-year [2]. - The company has launched a stock option incentive plan aimed at promoting the development of its computing power services business, indicating a strong commitment to this area [2][4]. Financial Summary - For H1 2024, the company reported a gross margin increase of 6.96 percentage points to 23.37%, driven by product structure optimization and declining raw material prices [2]. - The company’s revenue is projected to grow from 2.569 billion yuan in 2024 to 3.877 billion yuan in 2026, with corresponding net profits expected to rise from 209 million yuan to 336 million yuan during the same period [5][6]. - The earnings per share (EPS) forecast for 2024-2026 is 0.12, 0.15, and 0.19 yuan, respectively, with current price-to-earnings (PE) ratios of 27, 21, and 17 times [2][5].