ANGEL YEAST(600298) 财通证券·2024-11-06 06:23Investment Rating - The report maintains an "Overweight" rating for the company [1] Core Views - In 3Q2024, the company achieved revenue of RMB 37.38 billion, a YoY increase of 27.14%, with net profit attributable to shareholders of RMB 2.62 billion, a YoY increase of 7.02%, and adjusted net profit of RMB 2.43 billion, a YoY increase of 21.60% [2] - Revenue growth was driven by strong performance in the yeast business, improvement in derivative products, and significant growth in overseas markets, particularly in the Middle East, Africa, and Asia-Pacific regions [2] - Domestic and international revenues were RMB 22.69 billion and RMB 14.33 billion, respectively, with YoY growth rates of 20.70% and 30.20% [2] - Gross margin in 3Q2024 was 21.35%, down 3.63 percentage points YoY due to rising shipping costs, while adjusted net margin remained stable at 6.5% [3] - The company is expected to achieve full-year revenue growth close to its 15% target, with steady profit growth and potential cost improvements in the next fiscal year [3] Financial Projections - Revenue for 2024-2026 is projected to be RMB 154.42 billion, RMB 173.31 billion, and RMB 194.56 billion, with YoY growth rates of 13.70%, 12.24%, and 12.26%, respectively [4] - Net profit attributable to shareholders for 2024-2026 is expected to be RMB 13.97 billion, RMB 16.17 billion, and RMB 19.36 billion, with YoY growth rates of 9.96%, 15.80%, and 19.71%, respectively [4] - EPS for 2024-2026 is forecasted to be RMB 1.61, RMB 1.86, and RMB 2.23, with corresponding P/E ratios of 22.85x, 19.73x, and 16.48x [4] Financial Metrics - Gross margin is expected to improve from 24.2% in 2023 to 26.0% in 2026, driven by cost reductions and operational efficiencies [5] - ROE is projected to increase from 12.61% in 2023 to 14.49% in 2026, reflecting improved profitability and capital efficiency [5] - The company's asset turnover is expected to improve, with total asset turnover days decreasing from 480 days in 2023 to 421 days in 2026 [5] Operational Highlights - The company's overseas business has shown strong growth, contributing significantly to overall revenue, with a focus on expanding market share in emerging markets [2] - Cost pressures from rising shipping expenses have impacted gross margins, but the company expects cost improvements in the next fiscal year due to lower raw material prices [3] - The company's R&D expenses are expected to increase steadily, reflecting continued investment in product innovation and market expansion [5]