ANGEL YEAST(SH:600298) CSC SECURITIES (HK) LTD·2024-06-03 06:01Investment Rating - The investment rating for the company is "Trading Buy" [5][6][9] Core Views - The company has launched a 2024 employee stock incentive plan aimed at enhancing employee motivation and aligning interests [6] - Domestic demand is under short-term pressure, while overseas market expansion continues to progress [6] - The company aims for a revenue growth of 15.4% and a net profit growth of 7.8% for the year 2024 [7] Company Overview - The company operates in the agriculture, forestry, animal husbandry, and fishery industry [2] - As of May 31, 2024, the company's stock price is 30.58, with a market capitalization of 26.48 billion [2] - The major shareholder is Hubei Angel Yeast Group Co., Ltd., holding 38.07% of shares [2] Recent Performance - In Q1 2024, the company achieved a revenue of 3.48 billion, a year-on-year increase of 2.5%, but net profit decreased by 9.5% to 320 million [6] - Domestic revenue was 2.1 billion, down 4.5% year-on-year, while overseas revenue grew by 16.7% to 1.37 billion [6] Financial Projections - Expected net profits for 2024, 2025, and 2026 are 1.37 billion, 1.56 billion, and 1.77 billion respectively, with year-on-year growth rates of 7.8%, 14%, and 13.2% [7][8] - Earnings per share (EPS) for the same years are projected to be 1.58, 1.80, and 2.04, with corresponding price-to-earnings (P/E) ratios of 19, 17, and 15 [7][8] Product Composition - The product mix includes 70.52% yeast and deep processing, 11.46% sugar production, 2.87% packaging products, and 15.15% other products [4]