NHU(SZ:002001) Huachuang Securities·2024-04-24 23:31Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 20.16 CNY [1]. Core Views - The company has shown signs of recovery, with a forecasted increase in net profit for Q1 2024 by 30%-40% year-on-year, driven by improved performance in the methionine segment [1]. - The vitamin segment is expected to enter a recovery phase, contributing positively to overall performance in 2024 [1]. - The company has a rich project pipeline, including new product developments that will inject growth momentum [1]. Financial Performance Summary - In 2023, the company reported total revenue of 151.17 billion CNY, a decrease of 5.13% year-on-year, and a net profit of 27.04 billion CNY, down 25.30% year-on-year [1][2]. - For Q4 2023, revenue was 41.04 billion CNY, showing a year-on-year increase of 2.00% and a quarter-on-quarter increase of 14.21% [1]. - The company plans to distribute a cash dividend of 0.45 CNY per share, totaling 13.83 billion CNY, with a payout ratio of 51.14% and a dividend yield of 2.50% [1]. Segment Performance Summary - The nutrition segment saw a revenue decline of 9.91% year-on-year, with a gross margin of 29.91% [1]. - The flavor and fragrance segment achieved a revenue increase of 10.34% year-on-year, with a gross margin of 50.51% [1]. - The new materials segment reported a revenue increase of 3.04% year-on-year, benefiting from the ramp-up of the PPS Phase III project [1]. Future Outlook - The company is expected to achieve net profits of 39.08 billion CNY, 47.62 billion CNY, and 51.89 billion CNY for the years 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 44.5%, 21.8%, and 9.0% [1][2]. - The projected price-to-earnings ratios for 2024, 2025, and 2026 are 14, 12, and 11 times, respectively [2].