ANGEL YEAST(SH:600298) HTSC·2024-09-26 02:03Investment Rating - Investment Rating: Buy [1] - Target Price: RMB 37.86 [1] Core Views - The company plans to build a factory in Indonesia to expand its presence in the Southeast Asian market, addressing the issue of insufficient overseas production capacity [2][3] - The company intends to issue bonds totaling no more than RMB 2 billion to refinance existing loans and support overseas capacity expansion during the 14th Five-Year Plan period [2][3] - The company is expected to benefit from improved demand for its yeast products, accelerated penetration of derived products, and continued growth in overseas markets, which may restore growth momentum [2][4] Summary by Sections Company Overview - The company has announced a joint venture with Sanan in Indonesia, with investments of RMB 305 million and RMB 76 million respectively, to establish a subsidiary that will primarily serve the Southeast Asian market [3] - The subsidiary will use RMB 36 million (excluding tax) to purchase land for factory construction [3] Financial Performance - The company’s overseas business is expected to maintain growth, with a projected revenue increase of 17.9% year-on-year for the first half of 2024 [4] - Domestic business shows a clear improvement trend, with small packaged products benefiting from a recovery in home demand [4] - The company is focusing on optimizing its business structure by divesting low-margin sugar production and enhancing its supply capabilities overseas [4] Earnings Forecast - EPS estimates for 2024-2026 are RMB 1.58, RMB 1.74, and RMB 2.08 respectively, with a target price based on a 24x PE ratio for 2024 [2][5] - Revenue projections for 2024-2026 are RMB 15.406 billion, RMB 16.943 billion, and RMB 18.633 billion, reflecting growth rates of 13.44%, 9.97%, and 9.98% respectively [6][11]