Haitong International gave Meihua Biotech an overweight rating with a target price of 13 0 yuan

Mondo Finance Updated on 2024-01-31

Haitong International ** Group *** Zhuang Huaichao recently conducted research on Meihua biology and released a research report "amino acid industry leader, the core management intends to increase its holdings of not less than 80 million yuan", this report gives an overweight rating to Meihua biology, and believes that its target price is 1300 yuan, the current stock price is 99 yuan, the expected range of ** is 3131%。

Plum Creature (600873).

Synthetic biology is a leader in the amino acid industry. The company is a global leading amino acid enterprise, with corn as the main raw material, and a wide range of downstream layoutsAt present, the company has formed a business structure with animal nutrition amino acids, umami products and human medical amino acids, colloidal polysaccharides and other advantageous products as the core, including lysine, threonine, monosodium glutamate, xanthan gum, pharmaceutical amino acids, etc., of which the production capacity of lysine and monosodium glutamate has reached one million tons respectively. In the field of synthetic biology, after years of accumulation, the company has built a strain transformation, process optimization, application development team, good at computer-aided strain design and amino acid production chassis cell genome editing, and seamless connection with the company's fermentation process and separation and extraction laboratory, to select the best iterative amplification to replace the production of bacteria, the rapid iteration of products and technologies is the distinctive feature of the company's synthetic biology development.

The company's core management plans to increase its holdings by no less than 80 million yuan. A total of 35 members of the company's directors, supervisors, senior management and other core management plan to increase their holdings of the company's shares by a total of not less than RMB 80 million (including transaction costs) through the methods permitted by the Shanghai ** Exchange trading system (including but not limited to centralized bidding, block trading, etc.) within six months from January 8, 2024, with no ** upper limit. The increase is based on the company's established core competitiveness in the field of synthetic biology, as well as the expectation of broad development prospects in the industry, the company's management is full of confidence in the company's intrinsic value and future development potential, and has the ability to continue to create value for investors.

"Dividend + repurchase" dual mode. The company returns shareholders through "dividends + repurchase cancellation", and in terms of cash dividends, according to wind, the company's total cash dividends from 2020 to 2022 are 92.6 billion yuan, 121.7 billion yuan, 117.7 billion yuan. In terms of repurchase and cancellation, the company's actual cancelled share capital from 2020 to 2022 is 3006960,000 shares, 2608490,000 shares, 9903930,000 shares, and the total amount of self-owned funds used from 2020 to 2022 is 20,048050,000 yuan (total repurchase 3422.)200,000 shares. 150,000 yuan, 999.5 million yuan. On April 8, 2023, the board of directors of the company passed the latest round of share repurchase proposals, and the total amount of funds to be repurchased shall not be less than 800 million yuan and not more than 1 billion yuan. As of the end of December 2023, the company has repurchased about 6,359 shares060,000 shares, with a total amount of about 57,664520,000 yuan (excluding transaction costs).

Earnings** and Valuation: We expect the company's net profit attributable to the parent company from 2023 to 2025 to be respectively. 8.2 billion yuan, corresponding to EPS of 120 yuan, 130 yuan, 145 yuan. Referring to companies in the same industry, we give the company 10 times PE in 2024, corresponding to a target price of 13 yuan (the target price in the previous period was 12 yuan, based on 10 times PE in 23 years, +8.).33%), maintaining its "outperform" rating.

Risk warning: the downstream demand of the product is less than expected, and the progress of the production capacity under construction is less than expected.

*According to the calculation of the research report data released in the past three years, the research team of Chai Qinhu of the League of Nations has conducted in-depth research on the stock, and the average accuracy of the past three years is as high as 8942%, and its ** attributable net profit in 2023 is 349.7 billion, and the **PE converted according to the current price is 813。

The latest profit** breakdown is as follows:

A total of 6 institutions have rated the stock in the last 90 days, with 5 ratings ** and 1 overweight ratingsThe average institutional price target over the last 90 days is 1357。

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