梅花生物：拟跨境收购协和发酵部分资产，丰富产品管线，迈向出海征途

Investment Rating - The report maintains an "Accumulate-A" rating for Meihua Biological (600873.SH) [1] Core Views - Meihua Biological plans to acquire certain assets from Concord Fermentation for 10.5 billion JPY (approximately 500 million CNY), which will enhance its product pipeline and support its international expansion strategy [1] - The acquisition will add various amino acid products and strains, including arginine, histidine, serine, and others, as well as several HMO strains and related intellectual property [1] - The transaction is expected to solidify the company's strategy for overseas development and extend its high-value pharmaceutical-grade amino acid market [1] Financial Projections - Revenue forecasts for 2024 to 2026 are 28.21 billion CNY, 29.60 billion CNY, and 31.09 billion CNY, representing year-on-year growth of 1.6%, 4.9%, and 5.0% respectively [4] - Net profit forecasts for the same period are 2.89 billion CNY, 3.20 billion CNY, and 3.48 billion CNY, with year-on-year changes of -9.2%, 10.6%, and 8.9% respectively [4] - Corresponding EPS for 2024, 2025, and 2026 are projected to be 1.01 CNY, 1.12 CNY, and 1.22 CNY, with P/E ratios of 10.0, 9.0, and 8.3 respectively [4] Market Performance - As of November 26, 2024, the closing price of Meihua Biological was 10.10 CNY, with a yearly high of 11.95 CNY and a low of 8.72 CNY [1] - The circulating A-share market capitalization is 28.81 billion CNY, with a total market capitalization also at 28.81 billion CNY [1] Financial Data Summary - For the fiscal year 2022, the company reported revenue of 27.94 billion JPY, with a net profit of 4.41 billion JPY [6] - The projected revenue for 2023 is 27.76 billion JPY, with a net profit of 3.18 billion JPY, indicating a decline in profitability [6] - The gross margin is expected to be 20.2% in 2024, with a net margin of 10.2% [10]