ANGEL YEAST(SH:600298) Huaxin Securities·2024-11-03 05:23Investment Rating - The report maintains a "Buy" investment rating for Angel Yeast (600298.SH) [1][3] Core Views - The demand for yeast products is showing a significant recovery, with the company achieving a revenue of 10.912 billion yuan in Q1-Q3 2024, representing a 13% year-on-year increase. The net profit attributable to shareholders reached 0.953 billion yuan, up 4% year-on-year [1] - The report highlights that the company's Q3 2024 revenue was 3.738 billion yuan, a 27% increase year-on-year, driven by a slow recovery in domestic baking and continued high growth in overseas markets [1] - The gross profit margin decreased by 4 percentage points to 21.35% in Q3 2024, primarily due to a significant rise in shipping costs [1] Summary by Sections Financial Performance - For Q1-Q3 2024, the company reported a revenue of 10.912 billion yuan and a net profit of 0.953 billion yuan, with a 13% and 4% increase year-on-year respectively. In Q3 alone, revenue was 3.738 billion yuan, marking a 27% increase year-on-year [1] - The company’s gross profit margin decreased to 21.35% in Q3 2024, attributed to rising shipping costs [1] Product and Market Analysis - The revenue from yeast and deep processing products, sugar products, packaging products, and other products in Q3 2024 was 2.592 billion yuan, 0.309 billion yuan, 0.111 billion yuan, and 0.690 billion yuan respectively, with year-on-year growth rates of 18%, 5%, 16%, and 77% [1] - Domestic revenue in Q3 2024 was 2.269 billion yuan, a 21% increase year-on-year, driven by increased home consumption and demand for yeast extract [1] - Overseas revenue reached 1.433 billion yuan in Q3 2024, a 30% increase year-on-year, with significant growth in regions such as the Middle East, Africa, Europe, and Asia-Pacific [1] Future Outlook - The report anticipates improved profit performance in Q4 2024, supported by a downward trend in molasses prices and alleviated shipping costs. The company is expected to continue its global expansion and capacity construction [3][1]