ANGEL YEAST(SH:600298) Guotai Junan Securities·2024-08-08 00:31Investment Rating - The report maintains an "Accumulate" rating for the company [4][6]. Core Views - The company's revenue and profit showed improvement quarter-on-quarter, with the main business growth accelerating, particularly in international markets compared to domestic demand, which is still recovering gradually [3]. - The company reported a slight revenue beat, with H1 2024 revenue at 7.175 billion yuan, up 6.86% year-on-year, and net profit attributable to shareholders at 691 million yuan, up 3.21% year-on-year [4]. - The report highlights that the cost pressure from molasses is expected to continue to ease, which may stabilize profitability [3]. Financial Summary - H1 2024 revenue: 7.175 billion yuan, +6.86% YoY; net profit: 691 million yuan, +3.21% YoY; Q2 2024 revenue: 3.692 billion yuan, +11.30% YoY; net profit: 372 million yuan, +17.26% YoY [4]. - The company forecasts EPS for 2024-2026 to be 1.58, 1.79, and 2.13 yuan respectively, with a target price of 38.88 yuan [4][6]. - The gross margin for Q2 2024 improved by 0.3 percentage points to 23.9%, attributed to lower raw material costs and improved business structure [4]. Business Performance - Revenue from yeast and deep processing/sugar/packaging/other businesses in Q2 2024 grew by 12.2%, -40.1%, -17.1%, and +46.4% YoY respectively [4]. - Domestic and international revenues grew by 6.6% and 19.0% YoY respectively, with offline and online revenues increasing by 13.0% and 7.6% YoY [4]. - The report indicates that the domestic market for baking yeast still faces price competition, while international markets are expanding [4].