ANGEL YEAST(SH:600298) Huafu Securities·2025-04-12 14:26Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the market benchmark index within the next six months [21]. Core Views - The company achieved a revenue of 15.197 billion yuan in 2024, representing a year-on-year growth of 11.9%. The net profit attributable to shareholders was 1.325 billion yuan, up 4.1% year-on-year [2][6]. - The fourth quarter of 2024 saw a revenue of 4.285 billion yuan, a 9.1% increase year-on-year, with a net profit of 371 million yuan, reflecting a 3.6% growth [2][6]. - The company anticipates a performance turning point due to improved profitability driven by lower sugar molasses costs and a marginal decrease in shipping rates [6]. Summary by Sections Financial Performance - The company's main business segments showed varied performance in 2024, with yeast and deep processing products growing by 14%, while sugar products and packaging saw declines of 26% and 3%, respectively. Food raw materials and other main products experienced significant growth of 32% and 42% [4]. - Domestic and overseas revenues grew by 7.5% and 19.4%, respectively, with the Egyptian factory reporting a revenue increase of 12.5% and a net profit surge of 59.3% [4]. - The overall gross margin for the year was 23.52%, a decrease of 0.67 percentage points year-on-year, but the fourth quarter gross margin improved to 24.15%, an increase of 1.13 percentage points year-on-year [5]. Profitability Outlook - The company expects to achieve a stable revenue growth target of 10% for the year, supported by overseas capacity ramp-up and deepened market penetration [6]. - Profit forecasts for 2025-2027 have been slightly adjusted downwards, with expected net profits of 1.662 billion yuan, 1.936 billion yuan, and 2.221 billion yuan, reflecting year-on-year growth rates of 25%, 16%, and 15%, respectively [6]. Market Position and Strategy - The company is focusing on enhancing its overseas operations through the establishment of subsidiaries, channel expansion, and capacity upgrades, which are expected to drive sales growth in yeast and deep processing products [4][6]. - Online and offline sales channels reported growth rates of 15.6% and 3.5%, respectively, indicating a robust sales strategy [4].