MEIHUA BIO、MeiHua Group(600873) 海通国际证券·2025-03-18 09:34Investment Rating - The report maintains an "OUTPERFORM" rating for Meihua Holdings Group with a target price of Rmb12.20, representing a potential upside of 5.54% from the current price of Rmb10.16 [2][11]. Core Insights - In 2024, the company experienced a recurring net profit decrease of 12.55% year-on-year, with operating income of Rmb25.069 billion, a decline of 9.69% year-on-year, and a net profit of Rmb2.740 billion, down 13.85% year-on-year [7][11]. - In Q4 2024, the recurring net profit surged by 98.95% quarter-on-quarter, driven by the leading market share of core products like lysine and threonine, despite a year-on-year revenue decline of 11.69% [8][10]. - The company plans to distribute cash dividends of Rmb4.206 per 10 shares, totaling approximately Rmb2.27 billion, which accounts for 82.84% of the net profit attributable to the parent company [8][11]. Financial Performance Summary - For 2024, the company reported a revenue of Rmb25.069 billion, a net profit of Rmb2.740 billion, and a recurring net profit of Rmb2.697 billion, with significant non-operating expenses due to settlement fees [7][9]. - The animal nutrition segment showed mixed results, with a 6.51% increase in amino acids output but a decline in revenue from food taste optimization products [9][10]. - The company is expanding its production capacity and implementing digital transformation strategies to enhance operational efficiency and maintain its industry leadership [10][11]. Earnings Forecast - The projected net profit for 2025 is Rmb3.200 billion, a decrease of 7.41%, followed by Rmb3.456 billion in 2026 and Rmb3.728 billion in 2027 [11]. - The estimated P/E ratio for 2025 is 10.89, which aligns with the valuation of comparable companies in the industry [11].