2024Q1归母净利润同比下降6.13%，主要产品价格上涨

Investment Rating - The report maintains an "Outperform" rating for Meihua Holdings Group [2][12]. Core Insights - In Q1 2024, the company's net profit attributable to shareholders decreased by 6.13% year-on-year, primarily due to rising prices of main products [1][8]. - The company reported operating income of RMB 6.487 billion in Q1 2024, down 10.34% quarter-on-quarter and 6.67% year-on-year [8][12]. - The decline in net profit was attributed to a decrease in gross profit margin from by-products, particularly due to falling prices of xanthan gum [8][12]. Financial Performance Summary - Revenue and Profit: - Q1 2024 operating income: RMB 6.487 billion, down 10.34% QoQ, down 6.67% YoY - Q1 2024 net profit: RMB 752 million, down 26.33% QoQ, down 6.13% YoY - Recurring net profit: RMB 637 million, down 35.38% QoQ, down 19.01% YoY [3][8][12]. - Segment Performance: - Fresh flavor agents (MSG, nucleotides): RMB 2.046 billion, down 10.24% YoY - Feed amino acids (lysine, threonine, etc.): RMB 2.755 billion, up 17.57% YoY - Pharmaceutical amino acids: RMB 133 million, down 16.32% YoY - Large raw material by-products: RMB 955 million, down 29.68% YoY - Others (xanthan gum, alginate sugar, etc.): RMB 598 million, down 26.26% YoY [4][9]. - Earnings Forecast: - Expected EPS for 2024-2026: RMB 1.20, RMB 1.32, RMB 1.46 respectively - Target price maintained at RMB 13, based on a PE ratio of 10.83 for 2024 [11][12]. Product Pricing Trends - Major product prices have increased recently: - Lysine (70%): RMB 5,425/ton, up 10.71% since February 27, 2024 - Lysine (98%): RMB 10,450/ton, up 14.21% since February 22, 2024 - Threonine: RMB 10,550/ton, up 11.64% since March 6, 2024 - MSG: RMB 8,200/ton, up 2.5% since March 13, 2024 [10]. Shareholder Returns - The company has a dual approach of cash dividends and share buybacks: - Total cash dividends from 2020 to 2022: RMB 926 million, RMB 1.217 billion, RMB 1.177 billion - Recent share repurchase plan: RMB 800 million to RMB 1 billion, with approximately 69.634 million shares repurchased by March 2024 [11].