Core Insights - The company reported a revenue of 5.59 billion yuan for the first three quarters of 2025, a year-on-year decrease of 9.7%, while the net profit attributable to shareholders was 120 million yuan, an increase of 26.0% [1] - The company's non-recurring net profit reached 190 million yuan, reflecting a year-on-year increase of 48.2% [1] - In Q3 2025, the company achieved a revenue of 1.6 billion yuan, down 11.0% year-on-year, but the net profit attributable to shareholders surged to 1 million yuan, a remarkable increase of 101.1% [1] Revenue and Profitability - The core retail categories showed positive growth, with online sales of the Joyoung brand's products such as wall-breaking machines, soybean milk machines, and rice cookers increasing by 4.7%, 26.5%, and 5.0% respectively in the first three quarters of 2025 [1] - The gross profit margin for the first three quarters of 2025 increased by 0.6 percentage points year-on-year to 26.9%, while Q3 gross profit margin rose by 4.4 percentage points to 26.2% [2][3] - The net profit margin for the first three quarters of 2025 improved by 0.7 percentage points to 2.2%, and for Q3, it increased by 4.6 percentage points to 0.1% [4] Expense Ratios - The expense ratios for sales, management, R&D, and finance showed mixed trends, with the sales expense ratio decreasing by 0.8 percentage points to 16.4% for the first three quarters of 2025, while the management expense ratio increased by 0.3 percentage points to 4.3% [3] - In Q3 2025, the sales expense ratio decreased by 0.7 percentage points to 18.5%, while the management expense ratio increased by 0.5 percentage points to 4.9% [3] Profit Forecast - The company has adjusted its profit forecast, expecting net profits attributable to shareholders to be 151 million yuan, 184 million yuan, and 220 million yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth of 23.2%, 21.9%, and 19.6% [4]

Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company reported a revenue of 5.59 billion yuan for the first three quarters of 2025, a year-on-year decrease of 9.7%, while the net profit attributable to shareholders was 120 million yuan, an increase of 26.0% year-on-year [1] - The core product categories showed good growth in retail, with online sales of the brand's products such as wall-breaking machines, soybean milk machines, and rice cookers increasing by 4.7%, 26.5%, and 5.0% respectively in the first three quarters of 2025 [1] - The gross profit margin has gradually recovered, with a year-on-year increase of 0.6 percentage points and 4.4 percentage points for the first three quarters and the third quarter of 2025, reaching 26.9% and 26.2% respectively [2] - The company has adjusted its profit forecast, expecting net profits of 151 million, 184 million, and 220 million yuan for 2025, 2026, and 2027, representing year-on-year growth of 23.2%, 21.9%, and 19.6% respectively [2] Financial Summary - For 2025, the company is projected to have a revenue of 8.635 billion yuan, a decrease of 2.4% year-on-year, and a net profit of 151 million yuan, an increase of 23.2% year-on-year [4] - The earnings per share (EPS) for 2025 is estimated to be 0.20 yuan, with a projected price-to-earnings (P/E) ratio of 49.2 [4] - The company’s return on equity (ROE) is expected to improve from 3.5% in 2024 to 4.4% in 2025 [4]

Core Viewpoint - Anqi Yeast (600298) has shown strong overseas growth and better-than-expected profit recovery, leading to an upgraded target price of 46.0 CNY and a "buy" rating from Pacific Securities [1] Financial Performance - In H1 2025, Anqi Yeast achieved total revenue of 7.899 billion CNY, a year-on-year increase of 10.10%, and a net profit attributable to shareholders of 799 million CNY, up 15.66% [2] - Q2 2025 revenue reached 4.105 billion CNY, reflecting an 11.19% year-on-year growth, with a net profit of 429 million CNY, up 15.35% [2] - The gross profit margin for H1 2025 was 26.09%, improving by 1.81 percentage points year-on-year, while Q2 gross profit margin was 26.19%, up 2.27 percentage points [3] Cost and Profitability - The decline in raw material costs, particularly for molasses, has contributed to the improvement in gross margins, with a projected 15% decrease in molasses costs for the 2024/2025 season [3] - The net profit margin for Q2 2025 increased by 0.56 percentage points to 10.82%, with a non-GAAP net profit margin of 9.86%, up 1.70 percentage points year-on-year [3] Market Outlook - Domestic demand is expected to continue recovering, while overseas markets, particularly in the Middle East, Africa, and Asia-Pacific, are projected to maintain high growth [4] - The company aims for a revenue growth target of 10% for 2025, supported by new production facilities in Egypt and Russia [4] - The overall profitability is anticipated to improve significantly this year, with a focus on the recovery of yeast demand and declining shipping costs [4] Earnings Forecast - Revenue projections for 2025-2027 are 16.87 billion CNY, 18.77 billion CNY, and 20.85 billion CNY, respectively, with corresponding net profits of 1.60 billion CNY, 1.89 billion CNY, and 2.12 billion CNY [5] - The company is assigned a price-to-earnings ratio of 25 times for 2025, leading to a target price of 46.0 CNY [5]