MEIHUA BIO、MeiHua Group(SH:600873) China Post Securities·2025-09-08 06:02Investment Rating - The report maintains a "Buy" investment rating for the company, indicating a positive outlook for its stock performance relative to the market [5][10]. Core Insights - The company has shown steady growth in its performance, with a notable increase in net profit despite a slight decline in revenue. The first half of 2025 saw a revenue of 12.28 billion yuan, a year-on-year decrease of 2.87%, while the net profit attributable to shareholders increased by 19.96% to 1.768 billion yuan [5]. - The company's international expansion strategy is progressing well, highlighted by a successful cross-border acquisition that enhances its intellectual property and product offerings in the amino acid sector [5]. - The report forecasts continued growth in net profit for the years 2025 to 2027, with expected figures of 3.144 billion yuan, 3.367 billion yuan, and 3.745 billion yuan respectively, translating to earnings per share (EPS) of 1.10, 1.18, and 1.31 yuan [5][6]. Company Overview - The latest closing price of the company's stock is 11.06 yuan, with a total market capitalization of 31.6 billion yuan. The company has a debt-to-asset ratio of 38.8% and a price-to-earnings (P/E) ratio of 11.77 [4][5]. - The company has a total share capital of 2.853 billion shares, all of which are circulating [4]. Financial Projections - Revenue is projected to reach 25.1 billion yuan in 2024, with a growth rate of -9.69%, followed by 27.2 billion yuan in 2025, representing an 8.32% increase. The net profit attributable to shareholders is expected to grow from 2.74 billion yuan in 2024 to 3.745 billion yuan in 2027 [6][9]. - The report outlines a consistent improvement in profitability metrics, with the net profit margin expected to rise from 10.9% in 2024 to 11.7% in 2027 [9].