ANGEL YEAST(SH:600298) GUOTAI HAITONG SECURITIES·2025-10-30 11:29Investment Rating - The investment rating for the company is "Accumulate" with a target price of 48.99 CNY [6][12]. Core Insights - The company has shown stable revenue growth, with a year-on-year increase of 8.01% in revenue for the first three quarters of 2025, reaching 11.78 billion CNY. The net profit attributable to the parent company increased by 17.13% year-on-year to 1.12 billion CNY [3][12]. - The report highlights that while the non-recurring profit growth has experienced short-term fluctuations, the overall growth logic remains intact, supported by overseas expansion and declining costs of raw materials such as molasses [3][12]. - The company is expected to maintain a strong growth trajectory due to ongoing market expansion and improved cost structures, particularly with the anticipated decrease in domestic molasses costs [12]. Financial Summary - Total revenue is projected to grow from 13.585 billion CNY in 2023 to 20.425 billion CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 9.6% [5]. - The net profit attributable to the parent company is expected to increase from 1.273 billion CNY in 2023 to 2.048 billion CNY in 2027, with a notable growth rate of 17.4% in 2025 [5]. - The earnings per share (EPS) is forecasted to rise from 1.47 CNY in 2023 to 2.36 CNY in 2027 [5]. Revenue Breakdown - For Q3 2025, the company achieved a revenue of 3.887 billion CNY, with a year-on-year growth of 4.00%. The net profit for the same quarter was 317 million CNY, reflecting a 21.0% increase [12]. - The revenue from different product segments in Q3 2025 included 2.64 billion CNY from yeast and deep processing, 260 million CNY from sugar, and 900 million CNY from packaging [12]. - The domestic revenue was 2.19 billion CNY, down 3.5% year-on-year, while international revenue grew by 17.7% to 1.69 billion CNY [12]. Cost and Margin Analysis - The gross margin improved by 3.1 percentage points to 24.4% in Q3 2025, driven by lower costs of key raw materials [12]. - The report indicates that the company’s financial expenses increased due to higher interest costs from project capitalization, impacting the net profit margin [12]. - The net profit margin for Q3 2025 was 8.2%, with a non-recurring net profit margin of 5.7% [12].