Dongxing Securities: Initiate Lianhua Holdings with a "recommended" rating, the "dual-wheel drive" development pattern has been formed.

Dongxing Securities research report pointed out that Lianhua Holdings is an established leader in the MSG industry, creating the second growth curve in computing power. The condiment business is the company's main source of revenue, accounting for 90% of total revenue. In addition to maintaining its traditional business, the company has actively entered the field of intelligent computing power and other technological innovations, with the establishment of its wholly-owned subsidiary Lianhua Technology officially registered in Hangzhou on June 30, 2023, and reaching strategic cooperation with industry giants to build a first-class intelligent computing power center, providing services such as computing power leasing and data center operation. The company continues to undergo internal reforms, benefiting from an increase in product variety and the rise of new retail channels, optimizing brand awareness, and the market share of its core condiment business is expected to steadily increase; the computing power business, with the continuous expansion of its customer base and the ability to provide algorithm solutions, has formed a competitive advantage, and the company's "dual-drive" development pattern has taken shape. First coverage, giving a "recommendation" rating.