ANGEL YEAST(SH:600298) Guotai Junan Securities·2024-03-20 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 39.50 CNY, down from the previous forecast of 44.70 CNY [1][2]. Core Insights - The company's performance in 2023 was below expectations, with a focus on stability in its annual budget targets. The main business remains under pressure, but there is potential for gradual improvement in costs despite facing competition [1][2]. - The report highlights that the company's revenue for 2023 was 13.58 billion CNY, a year-on-year increase of 6%, while the net profit attributable to shareholders was 1.37 billion CNY, down 4% year-on-year [1][2]. - The report anticipates a stable target for 2024, with expected revenue growth of 15.37% and net profit growth of 7.80% [1][2]. Financial Summary - Revenue and profit forecasts for the upcoming years are as follows: - 2024E Revenue: 15.53 billion CNY - 2024E Net Profit: 1.85 billion CNY - 2025E Revenue: 17.35 billion CNY - 2026E Revenue: 19.18 billion CNY [2][1]. - The company's operating profit margin is projected to be 10.2% in 2024, with a net profit margin of 9.1% [1][2]. Market Position - The company is a leader in the yeast industry in China, focusing on the research and large-scale production of natural yeast. Its main products include bread yeast, brewing yeast, and nutritional health products [2][1]. - The report notes that the company's overseas business is growing rapidly, while domestic demand is gradually recovering [1][2].