ANGEL YEAST(SH:600298) ZHONGTAI SECURITIES·2024-04-22 02:32Investment Rating - The report maintains a "Buy" rating for the company, with a market price of 30.06 [2] Core Views - The company achieved a revenue of 34.83 billion yuan in Q1 2024, representing a year-on-year growth of 2.52%, while the net profit attributable to shareholders was 3.19 billion yuan, down 9.45% year-on-year [2] - The company’s main business of yeast showed steady growth, with strong performance in overseas markets. The revenue from yeast and deep-processed products reached 24.50 billion yuan, up 5.37% year-on-year [2] - The report highlights that the company is focusing on its core business, increasing market share, and expanding overseas, which is expected to sustain revenue growth despite domestic demand pressures [2][4] Financial Forecast and Valuation - Revenue projections for the company are as follows: - 2023A: 13,581 million yuan - 2024E: 15,355 million yuan - 2025E: 17,223 million yuan - 2026E: 19,175 million yuan [2][4] - Net profit forecasts are: - 2023A: 1,270 million yuan - 2024E: 1,376 million yuan - 2025E: 1,610 million yuan - 2026E: 1,837 million yuan [2][4] - Earnings per share (EPS) estimates are: - 2023A: 1.46 yuan - 2024E: 1.58 yuan - 2025E: 1.85 yuan - 2026E: 2.12 yuan [2][4] Key Financial Ratios - The report provides the following key financial ratios: - P/E ratio for 2024E is projected at 19.0, decreasing to 14.2 by 2026E [2] - P/B ratio for 2024E is projected at 2.4, decreasing to 1.9 by 2026E [2] - Return on equity (ROE) is expected to stabilize around 12% from 2024 to 2026 [2][4] Market Performance - The company’s market capitalization is reported at 26,115 million yuan, with a circulating market value of 25,954 million yuan [2] - The report notes that the company’s domestic and overseas revenue growth rates differ, with overseas markets maintaining a faster growth trend [2][4]