ANGEL YEAST(SH:600298) Huaan Securities·2024-03-18 16:00Investment Rating - The investment rating for Angel Yeast is maintained as "Buy" [1] Core Views - The report highlights that Angel Yeast's revenue for Q4 2023 was 3.928 billion (up 1.8%), with a net profit attributable to the parent company of 358 million (down 15.5%) [1] - For the full year 2023, the total revenue was 13.581 billion (up 5.7%), while the net profit attributable to the parent company was 1.270 billion (down 3.9%) [1] - The report indicates a divergence in gross profit margins between domestic and international markets, with domestic margins declining due to high raw material costs, while overseas margins improved due to cost reductions and operational efficiency [1] - The company aims for a revenue target of 15.7 billion for 2024 (up 15.4%) and a net profit target of 1.4 billion (up 7.8%) [2] Revenue Analysis - Domestic demand remains weak, with Q4 domestic revenue at 2.6 billion (down 9% year-on-year) and a full-year decline [1] - International revenue for Q4 reached 1.3 billion (up 27% year-on-year), indicating strong growth in regions like North America [1] Profitability Metrics - Q4 gross margin was 23.02% (down 0.91 percentage points), with domestic margins declining significantly [1] - The net profit margin for Q4 was 9.22% (down 1.98 percentage points), influenced by gross margin changes and reduced government subsidies [1] Future Outlook - The company has a clear cost improvement strategy, with expectations of significant profit contributions from overseas subsidiaries as raw material costs decline [1] - Long-term capacity for yeast fermentation has reached 370,000 tons, with a domestic market share of 55% and over 18% globally, indicating room for further international penetration [1][2]