ANGEL YEAST(600298) 国泰君安·2024-11-04 22:37Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 44.80 RMB, up from the previous target of 38.88 RMB [5] Core Views - The company's Q3 2024 performance showed significant improvement, driven by growth in domestic small-packaged yeast and YE products, as well as continued strong growth in overseas business [3] - Domestic business improved quarter-over-quarter, while overseas business maintained high growth momentum [11] - The company's revenue and net profit for Q3 2024 exceeded expectations, with revenue reaching 3.738 billion RMB, up 27.14% YoY, and net profit reaching 262 million RMB, up 7.02% YoY [11] - The company's competitive advantages are becoming more evident, with potential for gradual improvement in profitability due to cost reductions and better pricing strategies [11] Financial Performance - For Q1-Q3 2024, the company achieved revenue of 10.912 billion RMB, up 13.04% YoY, and net profit of 953 million RMB, up 4.23% YoY [11] - The company's gross margin for Q3 2024 was 21.4%, down 3.6 percentage points YoY, mainly due to rising shipping costs [11] - The company's net profit margin for Q3 2024 was 7.0%, down 1.3 percentage points YoY [11] Business Segments - In Q3 2024, the company's yeast and deep processing business grew by 17.8% YoY, while the sugar business grew by 5.5% YoY, and the packaging business grew by 16.3% YoY [11] - Domestic revenue grew by 20.7% YoY, while overseas revenue grew by 30.2% YoY [11] - Online and offline sales grew by 22.0% and 25.3% YoY, respectively [11] Future Outlook - The company is expected to benefit from cost reductions in raw materials such as molasses, and shipping costs are expected to decline starting from Q4 2024, which will improve profit margins [11] - The company's EPS forecasts for 2024-2026 are maintained at 1.58, 1.79, and 2.13 RMB, respectively [11] Valuation and Market Data - The company's current market capitalization is 31.914 billion RMB, with a share price of 36.74 RMB [6] - The company's P/E ratio is 24.16x based on the latest diluted share capital [10] - The company's ROE is expected to improve from 12.7% in 2024 to 14.2% in 2026 [10]