ANGEL YEAST(SH:600298) Tai Ping Yang·2024-08-15 07:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 37.26, compared to the last closing price of 30.51 [1]. Core Insights - The company's Q2 performance met expectations, with a year-on-year improvement in gross margin. In H1 2024, the company achieved revenue of 7.175 billion, a year-on-year increase of 6.9%, and a net profit attributable to shareholders of 691 million, up 3.4% year-on-year [2][4]. - Q2 revenue reached 3.692 billion, reflecting an 11.3% year-on-year growth, while net profit attributable to shareholders was 372 million, a 17.7% increase year-on-year [2][4]. - The company experienced a recovery in domestic sales of its main yeast products, with Q2 yeast revenue growing by 12.2% year-on-year, and other products (including enzyme preparations and food raw materials) growing by 46.3% year-on-year, driven by rapid growth in emerging overseas markets [2][4]. Financial Summary - For H1 2024, the gross margin was stable, with a slight year-on-year decrease of 0.3 percentage points, while Q2 gross margin improved by 0.3 percentage points to 23.9% due to lower costs of molasses and raw materials, particularly overseas [2][5]. - The company forecasts revenues of 14.983 billion, 16.764 billion, and 18.709 billion for 2024, 2025, and 2026 respectively, with corresponding growth rates of 10.32%, 11.89%, and 11.60% [4][5]. - The net profit attributable to shareholders is projected to be 1.407 billion, 1.568 billion, and 1.739 billion for the same years, with growth rates of 10.79%, 11.42%, and 10.95% respectively [4][5].