ANGEL YEAST(SH:600298) Tianfeng Securities·2024-08-13 00:29Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance over the next six months [4]. Core Views - The company continues to show strong growth in overseas markets, with a notable recovery in profit margins. The revenue and net profit for the first half of 2024 were reported at 7.175 billion and 691 million yuan, respectively, reflecting year-on-year increases of 6.86% and 3.21% [1]. - The yeast business remains robust, with new product developments contributing to growth. The total fermentation output reached 204,000 tons in the first half of 2024, marking an 11.5% increase year-on-year [1]. - The company is expanding its international presence, with a significant increase in the number of distributors, which rose by 1,912 to 23,237 by the end of Q2 2024 [1]. - Profitability is recovering, with gross and net profit margins improving by 0.28 and 0.36 percentage points to 23.92% and 10.26%, respectively [1]. Financial Summary - Revenue projections for 2024-2026 are adjusted to 14.967 billion, 16.493 billion, and 18.165 billion yuan, with expected year-on-year growth rates of 10% for each year [2]. - The forecasted net profit for the same period is 1.327 billion, 1.457 billion, and 1.576 billion yuan, with growth rates of 5%, 10%, and 8% respectively [2]. - Key financial metrics include a projected PE ratio of 20X for 2024, decreasing to 17X by 2026 [2]. Financial Data and Valuation - The company's total revenue for 2023 is estimated at 13.581 billion yuan, with a growth rate of 5.74% [3]. - The net profit for 2023 is projected at 1.270 billion yuan, reflecting a decrease of 3.86% compared to the previous year [3]. - The company’s market capitalization is approximately 26.816 billion yuan, with a current share price of 30.87 yuan [4].