ANGEL YEAST(SH:600298) SINOLINK SECURITIES·2024-10-31 06:58Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company reported a revenue of 10.912 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 13.5%. The net profit attributable to shareholders was 0.953 billion RMB, up 4.2% year-on-year [1]. - The yeast and deep processing segment showed significant recovery, with Q3 revenue reaching 2.592 billion RMB, a year-on-year increase of 17.8%. Domestic and international sales also grew, with domestic sales increasing by 20.7% and international sales by 30.2% [1]. - Profit margins have declined to historical lows, with a Q3 gross margin of 21.35%, down 3.6 percentage points year-on-year, attributed to changes in product structure and increased shipping costs [1]. - The company is expected to see revenue growth in the double digits in 2025, driven by domestic recovery in baking and noodle products, as well as planned capacity expansion in overseas markets [1]. Summary by Sections Performance Overview - For Q3 2024, the company achieved a revenue of 3.738 billion RMB, a year-on-year increase of 27.1%, and a net profit of 0.262 billion RMB, up 7.0% year-on-year [1]. - The adjusted net profit for Q3 was 0.243 billion RMB, reflecting a year-on-year increase of 22.7% [1]. Operational Analysis - The yeast and deep processing segment's revenue for Q3 was 2.592 billion RMB, with domestic and international sales at 2.269 billion RMB and 1.433 billion RMB, respectively [1]. - The company is focusing on localizing sales personnel and building marketing networks in key overseas markets to sustain high growth [1]. Profitability Metrics - The Q3 net profit margin was 7.0%, down 1.3 percentage points year-on-year, with a notable decrease in government subsidies received [1]. - The report anticipates improvements in profitability due to expected declines in molasses costs and shipping fees in the new sugar season [1]. Earnings Forecast and Valuation - The forecasted net profits for 2024, 2025, and 2026 are 1.36 billion RMB, 1.65 billion RMB, and 1.91 billion RMB, respectively, with corresponding year-on-year growth rates of 7%, 22%, and 16% [2].