ANGEL YEAST(SH:600298) Huachuang Securities·2024-06-03 07:01Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 37 yuan [1][3]. Core Views - The recent implementation of the stock incentive plan is expected to drive steady growth for the company, with a focus on long-term stability [2][3]. - The incentive plan involves granting 11.89 million restricted shares, representing 1.37% of the total share capital, to 1,006 individuals, including directors, senior management, and key technical personnel [1][8]. - The incentive plan aims to enhance employee motivation and align their interests with the company's performance, with a comprehensive assessment framework that includes revenue growth, EOE, and debt-to-asset ratio [3][11]. Financial Summary - Total revenue for 2023 is projected at 13,581 million yuan, with a year-on-year growth of 5.7%. Revenue is expected to increase to 14,966 million yuan in 2024, reflecting a growth rate of 10.2% [14]. - The net profit attributable to the parent company is forecasted to be 1,270 million yuan in 2023, with a decline of 3.9%, followed by a recovery to 1,328 million yuan in 2024, representing a growth of 4.6% [14]. - Earnings per share (EPS) are estimated to be 1.46 yuan in 2023, increasing to 1.53 yuan in 2024, and further to 2.24 yuan by 2026 [14]. Incentive Plan Details - The stock incentive plan includes a two-year lock-up period, followed by a three-phase unlock schedule over 36 months based on performance metrics [10][12]. - The performance targets for unlocking the shares include achieving a net asset cash return rate (EOE) of at least 21.5% in 2024 and a minimum revenue growth rate of 21% based on the average revenue from 2021 to 2023 [11][12]. Market Position - The company is positioned as a leader in its industry, with a strong competitive advantage that supports the optimistic growth outlook [3][14]. - The report highlights the company's ability to adapt its revenue targets in response to market conditions, aiming for a more sustainable growth trajectory [3][14].