NHU(SZ:002001) SINOLINK SECURITIES·2025-08-28 01:53Investment Rating - The report maintains a "Buy" rating for the company, predicting a long-term growth trajectory supported by the expansion of its nutrition segment and ongoing project developments [4]. Core Insights - The company reported a revenue of 11.1 billion RMB for the first half of 2025, marking a 13% year-on-year increase, while the net profit attributable to shareholders reached 3.6 billion RMB, up 63% year-on-year [2]. - The nutrition and flavor segments have shown positive revenue and profit growth, significantly contributing to the company's performance [2]. - The company is actively pursuing international expansion and digitalization, with ongoing projects and a focus on localizing operations abroad [3]. Summary by Sections Performance Review - In Q2 2025, the company achieved a revenue of 5.7 billion RMB, reflecting a 6% year-on-year increase and a 4% quarter-on-quarter growth. The net profit for the quarter was 1.7 billion RMB, up 29% year-on-year but down 8% quarter-on-quarter [2]. Business Analysis - The nutrition segment generated 7.2 billion RMB in revenue, an 8% increase year-on-year, with a gross margin of 48%, up 12 percentage points. The flavor segment brought in 2.1 billion RMB, a 9% increase year-on-year, with a gross margin of 54%, up 4 percentage points [2]. - The company is focusing on cost reduction and efficiency improvements in production, optimizing capacity utilization through various operational strategies [2]. Project Development and Internationalization - The company is progressing steadily with its projects, including a joint venture with Sinopec for a liquid methionine project and the completion of compliance approvals for a new nylon materials project [3]. - The company is enhancing its international management framework, including local recruitment and training programs for overseas operations [3]. Profit Forecast and Valuation - The forecasted net profits for 2025, 2026, and 2027 are 6.6 billion RMB, 7.1 billion RMB, and 7.4 billion RMB, respectively. The current market capitalization corresponds to a price-to-earnings ratio of 11.42, 10.65, and 10.17 for the respective years [4].