ANGEL YEAST(SH:600298) KAIYUAN SECURITIES·2025-04-29 02:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company had a steady start in Q1 2025, with a total revenue of 3.79 billion yuan, representing a year-on-year increase of 8.95%. The net profit attributable to the parent company was 370 million yuan, up 16.0% year-on-year [4][5] - The report maintains the forecast for net profit attributable to the parent company for 2025-2027 at 1.705 billion, 2.154 billion, and 2.574 billion yuan, respectively, with corresponding EPS of 1.96, 2.48, and 2.96 yuan [4][5] - The current stock price corresponds to a PE ratio of 17.2, 13.6, and 11.4 for 2025-2027, indicating a favorable valuation [4][5] Financial Performance - In Q1 2025, the revenue from the yeast business grew by 13.2% year-on-year, while the sugar business saw a decline of 60.7% and the packaging business decreased by 4.4% [5] - The gross profit margin improved by 1.31 percentage points year-on-year, attributed to the decline in molasses costs, which are expected to decrease by over 15% in 2025 [6][7] - The net profit margin increased by 0.59 percentage points year-on-year, despite a rise in the tax rate that negatively impacted the net profit margin by 0.76 percentage points [6] Business Outlook - The company anticipates a 10% revenue growth target for the year, supported by stock incentive plans that enhance employee motivation [7] - The international market continues to grow rapidly, while domestic demand is expected to remain under pressure in the short term due to factors such as demand weakness and organizational adjustments [5][7] - The report highlights that the profit elasticity is expected to be released in 2025-2026, with molasses supply likely to exceed demand, providing further room for cost reductions [7]