ANGEL YEAST(SH:600298) Changjiang Securities·2024-11-11 05:54Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company's main products are experiencing strong growth, with a continued upward trend in both domestic and international markets [3][5]. - The company reported total revenue of 10.912 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 13.04%, and a net profit attributable to shareholders of 0.953 billion yuan, up 4.23% year-on-year [3]. - The company is expected to see further improvements in profitability due to enhanced cost control and the successful implementation of its overseas expansion strategy [5]. Financial Performance Summary - For Q3 2024, the company achieved total revenue of 3.738 billion yuan, a year-on-year increase of 27.14%, and a net profit of 0.262 billion yuan, up 7.02% year-on-year [3]. - The revenue from yeast and deep processing products for the first three quarters of 2024 was 7.711 billion yuan, an increase of 11.69% year-on-year [3]. - The company’s gross profit margin for Q3 2024 was 21.35%, down 3.63 percentage points year-on-year, while the net profit margin decreased by 1.32 percentage points to 7.01% [4]. Product and Regional Performance - Domestic revenue reached 6.583 billion yuan, a year-on-year increase of 6.94%, while international revenue was 4.257 billion yuan, up 21.77% year-on-year [3]. - The company’s other income, including health products and enzyme preparations, saw a significant increase of 44.17% year-on-year, contributing to the overall revenue growth [3]. Future Outlook - The company is expected to achieve net profits of 1.362 billion yuan, 1.604 billion yuan, and 1.807 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.57, 1.85, and 2.08 yuan [5]. - The report highlights the potential for cost reductions in 2025, which could enhance the company's profitability further [5].