LHG(SH:600186) Soochow Securities·2025-05-05 06:23Investment Rating - The report maintains a "Buy" rating for Lianhua Holdings [1] Core Views - Lianhua Holdings' 2024 annual report and Q1 2025 report meet expectations, showing significant revenue and profit growth [7] - The company's main business in seasoning products is performing well, while its computing power services are also gaining traction [7] - The company has successfully launched high-margin new products and expanded its distribution channels, indicating strong growth potential [7] Financial Performance Summary - Total revenue for 2024 is projected at 2,646 million RMB, a year-on-year increase of 25.98% [1] - Net profit attributable to shareholders for 2024 is expected to reach 202.58 million RMB, reflecting a year-on-year growth of 55.92% [1] - Earnings per share (EPS) for 2024 is estimated at 0.11 RMB, with a price-to-earnings (P/E) ratio of 60.04 [1] Business Segment Performance - The food manufacturing segment achieved revenue of 2,563 million RMB in 2024, up 22.15% year-on-year, with specific products like monosodium glutamate and compound seasonings showing strong sales growth [7] - The computing power service segment generated revenue of 0.81 million RMB in 2024, marking a substantial increase of 10,447.11% year-on-year [7] Growth Strategy - The company has implemented a brand revitalization strategy, successfully launching new high-margin products and expanding its retail and online sales channels [7] - Lianhua Holdings plans to continue its double-digit growth in the seasoning business through new product launches and channel expansion [7] Profitability Metrics - The gross margin for 2024 is projected to increase to 25.30%, with net profit margin expected to reach 7.54% [7] - The company is optimizing its business structure, leading to improved profitability metrics [7]