ANGEL YEAST(SH:600298) Huachuang Securities·2025-08-15 02:02Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation of outperforming the benchmark index by over 20% in the next six months [2][8]. Core Insights - The company reported a significant improvement in profitability, with a 10.1% year-on-year increase in revenue to 78.99 billion yuan for the first half of 2025, and a 15.66% increase in net profit to 7.99 billion yuan [2][8]. - The second quarter of 2025 saw a revenue of 41.05 billion yuan, reflecting an 11.19% year-on-year growth, and a net profit of 4.29 billion yuan, up 15.35% year-on-year [2][8]. - The report highlights a strong performance in both domestic and international markets, with domestic revenue growing by 4.29% and international revenue by 22.28% in Q2 2025 [8][9]. Financial Performance Summary - The company’s total revenue is projected to grow from 151.97 billion yuan in 2024 to 212.80 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 11.3% [4]. - The net profit is expected to increase from 1.325 billion yuan in 2024 to 2.206 billion yuan in 2027, reflecting a CAGR of 16.1% [4]. - Earnings per share (EPS) are forecasted to rise from 1.53 yuan in 2024 to 2.54 yuan in 2027, indicating a strong growth trajectory [4]. Market Dynamics - The report notes that the company has expanded its distribution channels, adding 214 domestic and 164 international distributors in Q2 2025, which supports revenue growth [8][9]. - Cost reductions in raw materials and shipping have contributed to a significant increase in gross margin, which reached 26.19% in Q2 2025, up 2.27 percentage points year-on-year [8][9]. - The company is expected to continue benefiting from favorable cost dynamics and operational improvements, with a projected net profit margin increase to 10.82% in Q2 2025 [8][9].