ANGEL YEAST(SH:600298) Huaan Securities·2024-10-31 09:01Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported Q3 2024 results with revenue of 3.74 billion yuan, an increase of 27.1% year-on-year, and a net profit attributable to shareholders of 260 million yuan, up 7.0% year-on-year [1] - The overseas and domestic revenue showed a sequential improvement, with overseas revenue reaching 1.43 billion yuan, a year-on-year increase of 30%, and domestic revenue at 2.27 billion yuan, up 20.7% year-on-year [1] - The company is expected to achieve a revenue growth target of 10% and is planning to build a factory in Indonesia to alleviate overseas capacity pressure [1] Revenue Analysis - Q3 revenue breakdown: overseas revenue of 1.43 billion yuan (+30% YoY), domestic revenue of 2.27 billion yuan (+20.7% YoY) [1] - Product revenue growth: yeast (+18%), sugar (+5.5%), packaging (+16%), and food ingredients (+76.5%) [1] Profitability Insights - Q3 gross margin decreased by 3.6 percentage points to 21.4% due to a higher proportion of low-margin food ingredients and rising shipping costs [1] - The net profit margin for Q3 was 7.0%, down 1.3 percentage points year-on-year, attributed to last year's government subsidies and a higher tax rate [1] Financial Forecast - Revenue projections for 2024-2026 are 15.4 billion yuan, 17.3 billion yuan, and 19.2 billion yuan, respectively, with year-on-year growth rates of 13.6%, 11.9%, and 11.2% [3] - Net profit forecasts for the same period are 1.4 billion yuan, 1.6 billion yuan, and 1.8 billion yuan, with growth rates of 10.1%, 14.1%, and 12.4% [3] Valuation Metrics - Current price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected at 22, 20, and 17 times, respectively [1][3]