ANGEL YEAST(SH:600298) Huachuang Securities·2024-08-08 05:31Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 37 CNY, while the current price is 29.61 CNY [2]. Core Insights - The company reported a revenue of 6.91 billion CNY for the first half of 2024, reflecting a year-on-year increase of 3.21%. The net profit attributable to shareholders was 3.01 billion CNY, up 7.18% year-on-year [2][5]. - The company's main yeast business showed significant improvement, driven by the expansion of new customers, with domestic and overseas revenues growing by 6.64% and 19.01% respectively [2]. - The gross margin slightly improved, and despite an increase in expense ratios, the company achieved double-digit growth in performance due to increased subsidies [2][5]. Financial Performance Summary - Total revenue for 2023 was reported at 13.581 billion CNY, with a projected growth rate of 5.7% for the year [8]. - The net profit attributable to shareholders for 2023 was 1.27 billion CNY, with a year-on-year decrease of 3.9% [8]. - The earnings per share (EPS) for 2023 was 1.46 CNY, with projections of 1.70 CNY for 2024 and 2.24 CNY for 2025 [8]. Revenue and Profit Growth - The company expects revenue growth to accelerate in the second half of the year, with a target of double-digit growth driven by new production capacity and improved cost efficiency [2]. - The report anticipates that the company's net profit margin will stabilize, supported by a favorable cost structure and product optimization [2][5].