LHG(SH:600186) East Money Securities·2024-05-13 09:30Investment Rating - The report maintains a "Buy" rating for the company [4][18]. Core Views - The company has been deeply engaged in the seasoning and health food industry for 40 years, focusing on products like monosodium glutamate and chicken essence, while also expanding into compound seasonings and prepared dishes [4]. - The company is expected to achieve revenue of 2.684 billion, 3.308 billion, and 3.963 billion CNY for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 202 million, 271 million, and 352 million CNY [4]. - The company has shown significant growth in its main business, with a revenue increase of 27.83% in 2023 for its seasoning products, and a continued upward trend in 2024 [16]. Financial Summary - The company reported a revenue of 2.101 billion CNY in 2023, representing a growth of 24.23%, and a net profit of 130 million CNY, which is an increase of 181.43% [17]. - For the first quarter of 2024, the company achieved a revenue of 576 million CNY, up 26.45%, and a net profit of 49 million CNY, reflecting a growth of 134.54% [17]. - The gross margin and net margin for 2023 were 17.15% and 6.22% respectively, with significant improvements noted in the first quarter of 2024 [8][16]. Revenue Growth Projections - The company is projected to have a revenue growth rate of 27.75% in 2024, followed by 23.25% in 2025, and 19.82% in 2026 [12]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 0.11 CNY, 0.15 CNY, and 0.20 CNY respectively, with corresponding price-to-earnings (P/E) ratios of 38.03, 28.44, and 21.88 [4][12]. Market Performance - The company has a total market capitalization of approximately 7.427 billion CNY, with a 52-week high of 8.24 CNY and a low of 2.66 CNY [9]. - The stock has shown a 52-week increase of 46.29% [9]. Business Segments - The seasoning segment generated 1.890 billion CNY in revenue in 2023, with a notable increase in online and offline sales channels [16]. - The water business saw a remarkable revenue increase of 484.65% in 2023, indicating strong growth potential in this area [16]. Conclusion - The report indicates a positive outlook for the company, with strong revenue growth, improved profitability, and a solid market position in the seasoning and health food industry [4][16][17].