Angel Yeast (600298): Continuous improvement in performance and upgrade to buy
Summary and suggestions: Event: The company released three quarterly reports to achieve revenue of 55.
6 billion, an increase of 13 previously.
5%, net profit 6.
The earliest drop is 1.
2%, gross margin is 35.
4%, a decline of 0 per year.
4pct, estimated 3Q to achieve income 18.
500 million, an increase of 17 previously.
4%, net profit 200 million, an increase of 17.
8%, after deducting non-profit increase of 21%, gross profit margin of 33.
7%, down by 0 every year.
3Q results were in line with expectations.
3Q revenue was better than expected.
Among them, yeast derivatives maintained rapid growth. The overall growth rate was 20%. The yeast export business benefited from rapid currency depreciation. The growth rate of 1-3Q export yeast business revenue is expected to be around 12% (domestic sales revenue growth rate is 10% -11).%) In addition, due to the lower price of white sugar in the first half of the year, the company’s white sugar was reluctant to sell. In 3Q, with the rebound in prices, sales increased.
Due to the relatively lower gross profit margin of sugar and export business, changes in the product mix have slightly reduced the overall gross profit margin.
Driven by the recovery of sugar prices and the rapid growth of exports in 4Q, revenue is expected to maintain rapid growth, and the expected revenue growth rate is expected to reach about 15%.
Profit growth improved quarter by quarter.
After 1-3Q deduction, non-single quarterly net profit growth rates were -13.
2% and + 21%, showing significant improvement. The expansion is due to the elimination of the difference in base period (Last year ‘s Chifeng factory relocation and Yili factory capacity displacement and other problems). Instead, 2Q completed some factory inspections in advance. The 3Q volume increased and the unit was fixed.Cost reduction.
At present, the company’s capacity utilization situation has improved. The Yili factory is relocated every year. At present, the capacity utilization rate reaches 90%. The Chifeng factory has been relocated. At present, the production capacity has been replaced by 2 and overseas factories are also producing smoothly.The highest, 19Q4 performance is expected to accelerate growth.
Expenses temporarily increased, and internal operating efficiency improved.
3Q expense ratio dropped by 0.
53pct to 20.
03%, mainly benefiting from the appreciation of foreign currencies (USD, Egyptian nominee and ruble), increased exchange gains, and a significant decrease in financial expense ratio2.
08pct, but the sales expense ratio, management expense ratio and research and development expense ratio increased by 0.
48 pieces, 0 pieces
16pct and 0.
91pct, mainly due to increased staff and budget and increased R & D expansion.
We believe that the rise in the expense ratio is a temporary phenomenon. The main reason is that since the new chairman Xiong Tao took office in August, he has begun to adjust the company’s organizational structure and improve operational efficiency through consolidation and streamlining. It is expected that the reform effect will be gradually realized from 4Q.
In addition, 3Q inventory decreased by 7 compared with the previous month.
3%, the balance of 武汉夜生活网 accounts receivable decreased by 10% month-on-month, corresponding to 3Q net cash inflow from operating activities5.
7.2 billion (+ 53% year-on-year) also indicates that the company’s sales recovery has accelerated, reflecting an improvement in the company’s internal governance.
According to the current molasses procurement situation, the price of raw materials may maintain a slight downward trend. With the elimination of restrictions on the production of overseas factories and the production of domestic factories, and the elimination of the difference in base period brought by the return to normality, the company’s performance has improved.
Raise the average profit forecast, it is expected that net profit will be achieved respectively from 2019 to 20209.
400 million and 10.800 million, an increase of 9 in ten years.
12% and 15%, the EPS is 1, respectively.
13 yuan and 1.
31 yuan, the current sustainable corresponding PE is 24.
5 times and 21 times.
The company’s operations have improved positively, so it has been upgraded to a “buy” investment rating.
Risk warning: substantial appreciation of RMB, food safety issues, intensified international competition, and increased pressure on environmental protection