ANGEL YEAST(SH:600298) Caixin Securities·2024-08-12 02:31Investment Rating - The report maintains a "Buy" rating for the company [1][2][5] Core Views - The company is expected to see a gradual improvement in performance due to the realization of cost benefits and a recovery in domestic demand, alongside successful expansion into international markets [2][3][4] - The company achieved a revenue of 7.175 billion yuan in H1 2024, representing a year-on-year growth of 6.86%, with a net profit attributable to shareholders of 691 million yuan, up 3.21% year-on-year [2][3] - The report forecasts revenue growth of 10.73%, 10.20%, and 10.37% for the years 2024, 2025, and 2026, respectively, with net profit growth of 8.23%, 11.11%, and 23.06% for the same years [5][6] Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 71.75 billion yuan, with a net profit of 6.91 billion yuan. Q2 2024 saw revenue of 36.92 billion yuan, a 11.30% increase year-on-year, and a net profit of 3.72 billion yuan, up 17.26% year-on-year [2][3] - The company's main products, yeast and deep processing products, showed double-digit growth, while trade sugar business accelerated its performance [3][4] - The gross margin for Q1, Q2, and H1 2024 was 24.7%, 23.9%, and 24.3%, respectively, with net margins of 9.47%, 10.26%, and 9.88% [4][5] Market Dynamics - Domestic demand is recovering, and international customer expansion is progressing well, contributing to accelerated revenue growth in Q2 [3][4] - The company has successfully increased its dealer network, with domestic and international dealer numbers growing by 8% and 12%, respectively [3][4] Cost Structure and Profitability - The improvement in profitability is attributed to lower raw material costs and increased government subsidies, with sugar molasses prices decreasing significantly [4][5] - The report anticipates a steady increase in profitability due to continued cost reductions and a favorable business structure [5][6]