Angel Yeast (600298): Continuation of strategy to improve profit slightly by 10 billion

The company’s revenue growth remained stable in the second quarter, and its profit improved slightly from the previous quarter, which was still lower than market expectations. It was mainly due to the narrowing of the gross profit differential income, the significant increase in the yield due to the elimination of tax losses, and the net interest rate fell to 12%.

The company’s new and old chairman handed over, the core management team remained stable, and 南宁桑拿 the ten-billion strategic goal continued. We believe that as long as the established strategy has been effectively implemented, the main business of yeast has been around, and the multi-business unit combination has made efforts, the achievement of the ten-billion goal still needs further certainty.On the basis of steady and steady growth in both income and profit, the value of long-term investment remains outstanding.

We maintain our 19-year EPS forecast1.

15 yuan, adjusted EPS forecast for 20-21 to 1.

32 and 1.

53 yuan, maintaining a target price of 32 yuan, in the process of further decline, it is recommended to pay attention to the value of the company to buy points.

Revenue growth remained stable in the second quarter, and earnings improved slightly from the previous quarter, still below market expectations.

The company disclosed in the interim report that it earned 37 in 19H1.

14 ppm, an increase of 11 years.

6%, net profit attributable to mother 4.

6.4 billion, net of non-net profit4.

3.6 billion, respectively equal to 7.

7% and 9.

3%.

Of which 19Q2 single-quarter income of 18.

94, an increase of 11.

7%, net profit attributable to mother 2.

27 trillion, a slight increase of 0.

8%, deducting non-net profit 2.

0.7 million yuan, converted 4.

2%, revenue growth remained stable in the second quarter, and the profitability improved slightly, still lower than market expectations.

In terms of cash flow and operating quality, sales receipts in 19Q2 increased by 6.

7%, end of period accounts receivable 9.

600 million, an increase of 17 per year.

9%, sales policy has been relaxed.

The gross sales gap narrowed, and the yield was significantly increased with the elimination of the tax effect, and the net profit margin dropped to 12%.

  19Q2 gross profit margin 36.

0%, a slight drop of 0 a year.

4pct, mainly due to the company Q2’s centralized overhaul of the factory in advance, which affects the accumulation of production capacity. There are factors such as the increase in Russian molasses prices and the appreciation of Angie’s Egyptian currency.

19Q2 sales expense ratio 11.

2%, a slight increase of 0.

3pct, the substantial increase in advertising costs in the first half of the year has been accrued in Q1.

The management expense ratio (including the R & D expense reduction caliber) was increased by 0.

7 points to 7.

5%, mainly due to the promotion of research and development.

Due to the elimination of the resistance tax effect, the income tax rate in 19Q2 was 18.

6%, a significant increase of 4 a year.

One. The gross sales gap narrowed and yields recovered. The net profit margin dropped to 12 in 19Q2.

0%, down 1.

Three.

We believe that based on the improvement of industry competition and the balanced development of the company’s size and benefits, the company’s net interest rate should be stable at 12-15%, which should be a reasonable level.

In the early background of the growth of the main yeast industry, the development of business unit portfolios will be an important driving force for the tens of billions.

In the first half of the year, domestic revenue increased by 11% and overseas business increased by 14%.

In terms of different business segments, domestic baking pasta business increased by 14%, international baking increased by 6%, YE business increased by 14%, nutritional health increased by 24%, animal nutrition increased by 25%, and microbial nutrition increased by 16%.

Due to the price of sugar, the company intends to reduce the sale of sugar business, reducing the scale of more than 80 million, resulting in a decline in revenue growth rate. Following the initial planning, the sugar business will accelerate in the second half of the year.

The company also disclosed 3.

3 Announcing the expansion project of food raw materials, increasing the business sector with faster growth potential. Under the background of the increase in the yeast business base and the growth rate replacement, the company currently builds 13 business unit groups around the main yeast business, of which the business unit portfolio development will becomeAn important driving force for the tens of billions of goals.

The transfer of the old and new chairman, the ten billion strategy continued, and we look forward to fair incentives to advance in time.

The new and old chairman of the shareholders’ meeting smoothly handed over this week. The new chairman has stated that the company’s goal of 10 billion will not be changed, and it has ample confidence in the simultaneous growth of revenue and profits. Since taking office, he has been in the active running-in stage.

We believe that the company’s current core core remains stable. As long as the established strategic goals are effectively implemented, there will still be high certainty of the 10 billion target by 2021. It will maintain double-digit growth in revenue and synchronous and balanced growth in profits.The basis for increasing the value of intrinsic investment.

We also look forward to the new round of fair incentive plans being promoted in a timely manner, constraining the interests of new leadership and young key employees, fully mobilizing enthusiasm, ensuring the long-term healthy development of the company, and a win-win situation for all.

Investment suggestion: Maintain profit forecast, pay attention to the company’s value buying point, target price is 32 yuan.

Although the company’s interim profit was lower than market expectations, it was in a bottoming out stage.

The company has entered a new leadership stage, with its 10 billion target continued, and on the basis of slow and balanced growth in revenue and profit, the value of long-term investment remains outstanding.

We maintain our 19-year EPS forecast1.

15 yuan (corresponding to 9).

(US $ 400 million profit forecast), according to the company’s long-term planning, adjust the EPS forecast for 20-21 to 1.

32 and 1.

53 yuan (1 last time).

36 and 1.

75 yuan), maintaining a target price of 32 yuan, corresponding to 24 times PE in 20 years, maintaining a “prudent recommendation-A” rating, in the face of the decline process, it is recommended to pay attention to the company’s value buying points.

Risk Warning: Demand Forecast, Intensified Competition, Strategy Execution Is Less Than Expected Risk Warning: Demand Forecast, Intensified Competition, Strategy Execution Is Less Than Expected