ANGEL YEAST(SH:600298) Zheng Quan Zhi Xing·2025-08-18 13:13Core Viewpoint - Anqi Yeast (600298) has shown strong overseas growth and better-than-expected profit recovery, leading to an upgraded target price of 46.0 CNY and a "buy" rating from Pacific Securities [1] Financial Performance - In H1 2025, Anqi Yeast achieved total revenue of 7.899 billion CNY, a year-on-year increase of 10.10%, and a net profit attributable to shareholders of 799 million CNY, up 15.66% [2] - Q2 2025 revenue reached 4.105 billion CNY, reflecting an 11.19% year-on-year growth, with a net profit of 429 million CNY, up 15.35% [2] - The gross profit margin for H1 2025 was 26.09%, improving by 1.81 percentage points year-on-year, while Q2 gross profit margin was 26.19%, up 2.27 percentage points [3] Cost and Profitability - The decline in raw material costs, particularly for molasses, has contributed to the improvement in gross margins, with a projected 15% decrease in molasses costs for the 2024/2025 season [3] - The net profit margin for Q2 2025 increased by 0.56 percentage points to 10.82%, with a non-GAAP net profit margin of 9.86%, up 1.70 percentage points year-on-year [3] Market Outlook - Domestic demand is expected to continue recovering, while overseas markets, particularly in the Middle East, Africa, and Asia-Pacific, are projected to maintain high growth [4] - The company aims for a revenue growth target of 10% for 2025, supported by new production facilities in Egypt and Russia [4] - The overall profitability is anticipated to improve significantly this year, with a focus on the recovery of yeast demand and declining shipping costs [4] Earnings Forecast - Revenue projections for 2025-2027 are 16.87 billion CNY, 18.77 billion CNY, and 20.85 billion CNY, respectively, with corresponding net profits of 1.60 billion CNY, 1.89 billion CNY, and 2.12 billion CNY [5] - The company is assigned a price-to-earnings ratio of 25 times for 2025, leading to a target price of 46.0 CNY [5]