MEIHUA BIO、MeiHua Group(SH:600873) Minsheng Securities·2024-04-08 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][8]. Core Views - The company reported a slight decline in net profit by 6% year-on-year in Q1 2024, with revenue at 6.487 billion yuan, down 6.67% year-on-year [1]. - The decline in prices for products like monosodium glutamate and valine has negatively impacted performance, while prices for other amino acids like threonine and lysine have seen an increase [1]. - The company is expanding its production capacity and expects a gradual recovery in the amino acid market, supported by improved industry dynamics and demand recovery [1]. - The company has a strong commitment to shareholder returns, with a cumulative dividend of 9.15 billion yuan since its listing and a recent share buyback plan [1]. - Future profit forecasts for the company are optimistic, with expected net profits of 3.023 billion yuan, 3.148 billion yuan, and 3.363 billion yuan for 2024, 2025, and 2026 respectively [1][2]. Financial Summary - Q1 2024 revenue was 6.487 billion yuan, a decrease of 6.67% year-on-year, while net profit was 752 million yuan, down 6.13% year-on-year [1]. - The company’s overall gross margin and net margin for Q1 2024 were 19% and 12% respectively [1]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.03 yuan, 1.07 yuan, and 1.14 yuan respectively, with corresponding price-to-earnings (PE) ratios of 10X, 9X, and 9X [1][2].