Zhejiang NHU (002001 CH) Hold: Lacking further momentum as methionine earnings normalise

研报英文原文证据摘录

Zhejiang NHU (002001 CH) Hold: Lacking further momentum as methionine earnings normalise

26 May 2026

Equity Research Report

Zhejiang NHU (002001 CH) EquitiesChemicals

Hold: Lacking further momentum as methionine

earnings normalise China

◆ Methionine sector consensus earnings have been upgraded MAINTAIN HOLD

following conflict-related disruptions

TARGET PRICE (CNY) PREVIOUS TARGET (CNY)

◆ With the conflict-driven upcycle already reflected in the share

34.70 33.10 price, earnings are expected to normalise gradually in 2H26

SHARE PRICE (CNY) UPSIDE/DOWNSIDE◆ Maintain Hold and raise TP to RMB34.70 (from RMB33.10)

31.59 +9.8%

1Q26 in line; methionine price hikes likely to lift earnings in 2Q26. Due to the cyclical (as of 22 May 2026)

vitamin downturn in 1Q26, NHU’s net profit declined 3% y-o-y to RMB1.83bn, in line with MARKET DATA

our expectations. However, following the Middle East conflict since March, overseas Market cap (CNYm) 97,089 Free float 50%

Market cap (USDm) 14,289 BBG 002001 CH

supply force majeure drove a rapid increase in prices for NHU’s core products, including 3m ADTV (USDm) 259 RIC 002001.SZ

vitamins and methionine We expect NHU’s earnings to gradually reflect the higher ASPs

FINANCIALS AND RATIOS (CNY)

from 2Q26, with profitability improving significantly. As a result, we raise our 2026-27 Year to 12/2025a 12/2026e 12/2027e 12/2028e

earnings forecasts by 85% and 26%, respectively, and introduce our 2028 estimates. HSBC QH EPS 2.21 3.33 2.37 2.49

HSBC QH EPS prev 2.14 1.80 1.88 na

Normalisation from 2H26 amid ample supply. We remain highly positive on NHU’s Change (%) 3.1 84.9 25.9 na

Consensus EPS 2.10 2.67 2.74 3.03

position in the methionine industry, given its robust cost advantage and continued PE (x) 14.3 9.5 13.3 12.7

capacity expansion.