MEIHUA BIO、MeiHua Group(600873) 华鑫证券·2025-03-19 01:35Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [8]. Core Views - The company has experienced a year-on-year increase in the production and sales volume of amino acid products, despite a decline in revenue due to falling prices of major products [5][4]. - The company is committed to enhancing shareholder returns, with a cash dividend of 1.60 CNY per share and a dividend payout ratio of 62%, resulting in a dividend yield of 5.95% [7]. - The financial outlook is positive, with projected net profits increasing from 3.11 billion CNY in 2025 to 3.90 billion CNY in 2027, indicating strong growth potential [8]. Summary by Sections Market Performance - The company reported a total revenue of 25.07 billion CNY in 2024, a decrease of 9.69% year-on-year, with a net profit of 2.74 billion CNY, down 13.85% year-on-year [4]. Investment Highlights - The production volume of animal nutrition amino acids increased by 6.51% to 2.78 million tons in 2024, while sales volume rose by 5.65% [5]. - The company has ongoing expansion projects, including the Tongliao monosodium glutamate expansion project and the Baicheng lysine project, which is expected to commence in September 2024 [5]. Financial Analysis - The company has significantly reduced its financial expense ratio, with financial expenses decreasing by 250.81% due to lower interest expenses and increased exchange rate gains [6]. - Research and development expenses increased by 21.86%, reflecting the company's commitment to enhancing its technological competitiveness [6]. Earnings Forecast - The company is expected to see a revenue growth rate of 13.7% in 2025, with net profit growth rates of 13.3% and 13.5% in the following years [10][11]. - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 9.3, 8.2, and 7.4, respectively, indicating attractive investment value [8].