ANGEL YEAST(SH:600298) KAIYUAN SECURITIES·2025-08-18 05:47Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit from a decrease in molasses prices, leading to profit elasticity release in the 2025-2026 period [4][7] - The company's revenue for H1 2025 reached 7.899 billion yuan, a year-on-year increase of 10.1%, with net profit attributable to the parent company showing significant growth [4][5] - The forecast for net profit for 2025-2027 has been slightly adjusted downwards due to lower-than-expected government subsidies [4] Financial Performance - In H1 2025, the company's revenue was 7.899 billion yuan, with a net profit of 799 million yuan, reflecting a year-on-year increase of 15.7% [4] - The second quarter of 2025 saw revenue of 4.105 billion yuan, up 11.2% year-on-year, and net profit of 429 million yuan, up 15.4% [4] - The gross profit margin improved significantly due to the decrease in molasses costs, with a year-on-year increase of 2.27 percentage points in Q2 2025 [6] Business Segmentation - Yeast revenue in H1 2025 increased by 12.4%, with production up by 11.8% [5] - The sugar business saw a revenue increase of 20.1% in Q2 2025, primarily due to base effects [5] - Domestic and international market revenues in Q2 2025 grew by 4.3% and 22.3%, respectively, indicating robust international growth [5] Cost and Profitability - The company’s net profit margin in Q2 2025 increased by 0.38 percentage points, with the gross margin benefiting from lower molasses costs [6] - The company anticipates a continued decrease in molasses prices, which is expected to enhance profit elasticity in the upcoming seasons [7] Financial Projections - Revenue projections for 2025-2027 are 16.866 billion yuan, 18.604 billion yuan, and 20.773 billion yuan, respectively, with year-on-year growth rates of 11.0%, 10.3%, and 11.7% [9] - The projected net profit for 2025-2027 is 1.639 billion yuan, 2.096 billion yuan, and 2.542 billion yuan, with corresponding year-on-year growth rates of 23.7%, 27.9%, and 21.3% [9] - The expected EPS for 2025-2027 is 1.89 yuan, 2.41 yuan, and 2.93 yuan, with P/E ratios of 20.2, 15.8, and 13.0, respectively [9]