ANGEL YEAST(SH:600298) CMS·2024-08-12 03:35Investment Rating - The report maintains an "Accumulate" rating for Angel Yeast (600298.SH) [2][3] Core Views - The company experienced a year-on-year revenue growth of 11.3% and a net profit growth of 17.7% in Q2, driven by a recovery in domestic demand and strong overseas performance [2][3] - The outlook for H2 suggests a potential for double-digit revenue growth due to a low base effect, with expectations for a recovery in the derivative product segment and robust overseas demand [2][3] - The report adjusts the EPS forecast for 2024 and 2025 to 1.59 CNY and 1.76 CNY, respectively, corresponding to a 19x PE for 2024 [2][3] Summary by Sections Financial Performance - In Q2, the company achieved a revenue of 3.692 billion CNY, a year-on-year increase of 11.31%, and a net profit of 372 million CNY, up 17.65% [2][4] - The sales cash collection for Q2 was 3.870 billion CNY, reflecting an 8.70% increase year-on-year, with operating cash flow increasing to 570 million CNY [2][4] Market Dynamics - Domestic yeast demand is recovering, while overseas growth continues to outpace domestic performance, with Q2 revenues of 2.210 billion CNY from domestic markets and 1.454 billion CNY from overseas, representing year-on-year growth of 6.6% and 19.0%, respectively [2][4] - The company’s yeast business saw a 12.2% increase in revenue, attributed to a pricing strategy that improved order volumes [2][4] Cost and Profitability - The gross margin improved by 0.3 percentage points year-on-year, benefiting from lower molasses costs and a higher proportion of high-margin small-packaged yeast products [2][4] - The net profit margin for Q2 was 10.1%, an increase of 0.5 percentage points year-on-year, driven by government subsidies [2][4] Future Outlook - The report anticipates continued strong overseas growth, particularly in Europe, the Middle East, and Africa, with expectations for H2 to maintain this upward trend [2][3] - The company is expected to benefit from cost reductions and new capacity coming online by the end of the year, which may further enhance profit margins [2][3]