NHU(SZ:002001) Huachuang Securities·2024-04-30 11:02Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][4][16]. Core Views - The company's revenue for Q1 2024 reached 4.499 billion yuan, a year-on-year increase of 24.54% and a quarter-on-quarter increase of 9.61%. The net profit attributable to shareholders was 870 million yuan, with a year-on-year increase of 35.21% and a quarter-on-quarter increase of 44.21% [1]. - The increase in methionine sales volume and price contributed significantly to profit growth in Q1 2024. The average price of methionine in Q1 was 21.79 yuan/kg, up 22.55% year-on-year and 2.75% quarter-on-quarter [1]. - Vitamin prices have reached a turning point, with the vitamin price index at 82.64 in Q1 2024, reflecting a quarter-on-quarter increase of 4.15%. The prices of key products like VA and VE have risen by 18.88% and 22.81% respectively from their 2023 lows [1]. - The company has a rich project reserve, including a 4,000 tons/year cysteine project and a 30 billion yuan investment in a new phosphorous amino acid project, which will inject new growth momentum into the company [1]. Financial Summary - The company is expected to achieve net profits of 3.908 billion yuan, 4.762 billion yuan, and 5.189 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 44.5%, 21.8%, and 9.0% [2][8]. - The projected PE ratios for 2024, 2025, and 2026 are 15, 12, and 11 respectively, with a target price set at 22.68 yuan based on an 18x PE for 2024 [1][4].