ANGEL YEAST(SH:600298) Huachuang Securities·2024-04-22 13:31Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 37 CNY, compared to the current price of 30.06 CNY [2][3]. Core Views - The company reported a revenue of 3.483 billion CNY in Q1 2024, reflecting a year-on-year increase of 2.52%. However, the net profit attributable to shareholders decreased by 9.45% to 319 million CNY [2][3]. - The domestic business experienced a decline, impacting revenue expectations. Domestic revenue fell by 4.5% year-on-year, while overseas revenue grew by 16.7% [3]. - The gross margin for Q1 2024 was 24.66%, a slight increase of 0.75 percentage points year-on-year, attributed to a weak recovery in the domestic market and increased promotional activities [3]. - The report anticipates a gradual recovery in demand throughout the year, with revenue expected to accelerate in the second half as the base effect diminishes [3]. Financial Summary - Total revenue for 2023 was 13.581 billion CNY, with projected revenues of 14.906 billion CNY for 2024, 16.757 billion CNY for 2025, and 18.792 billion CNY for 2026, indicating a growth rate of 9.8% in 2024 [4]. - The net profit attributable to shareholders for 2023 was 1.270 billion CNY, with forecasts of 1.377 billion CNY for 2024, 1.568 billion CNY for 2025, and 2.124 billion CNY for 2026, reflecting an 8.4% growth in 2024 [4]. - Earnings per share (EPS) are projected to be 1.59 CNY in 2024, 1.81 CNY in 2025, and 2.45 CNY in 2026, with corresponding price-to-earnings (PE) ratios of 19, 17, and 12 respectively [4][3]. Market Performance - The company has a total market capitalization of 261.15 billion CNY and a circulating market value of 259.54 billion CNY [7]. - The stock has shown a performance decline of approximately 28% over the past 12 months compared to the CSI 300 index [8].