Angel Yeast (600298): Depreciation of exchange rate is beneficial for export business profit improvement

Angel Yeast (600298): Depreciation of exchange rate is beneficial for export business profit improvement

Event description: From January to September, the company realized revenue of 55.

6 ppm, an increase of 13 in ten years.

5%, net profit 6.

6.6 billion, down by 1 every year.

2%; net profit margin is 11.

97%, down by 1 every year.

78 units.

Core point of view: 1. In the third and third quarters, the growth rate of revenue and profit improved significantly from the previous quarter: in the third quarter, it achieved operating income of 18 in a single quarter.

460,000 yuan, an increase of 17 in ten years.

4% (11% in the first half of the year.

63%), net profit 2.

10,000 yuan, an increase of 17 in ten years.

8% (down 7 in the first half of the year.

66%), the growth rate improved significantly.

In terms of revenue 深圳桑拿网 split, in the third quarter, the revenue of major business units increased by more than 10%, of which health products, brewing business, and YE revenue increased by more than 20%.

Based on the rebound of sugar prices in the third quarter, the revenue of the sugar business also improved.

In terms of exports, benefiting from the depreciation of the RMB, the export revenue of participating products’ yeast increased by 12%, faster than domestic revenue growth.

It is expected that the growth rate will continue to pick up in the fourth quarter, with a 14% -15% growth probability.

2. Reasonable factors were gradually lifted, and the return to normal levels dragged down the growth rate: It was determined through the relocation of the Yili factory that Yili ‘s capacity utilization rebounded to about 90%, which helped improve 重庆耍耍网 the company ‘s profitability.

The Russian factory has also started to make a profit this year. It is expected to contribute about 50 million yuan in profit. The overall cost of molasses has also fallen, and many potential factors have been lifted.

However, due to the gradual decrease in the deductible amount of revenue, the company’s income rate gradually recovered from 10% to the normal 15%. From January to September, the cost increased by 4,564 million, and it is expected to increase by about 7,000-9,000 million.

Regardless of the increase in profit growth from January to September4.

53%.

3. The increase in management expenses and sales expense ratio, and the increase in foreign exchange earnings are the main reason for the improvement in profit: the gross profit margin in the third quarter was 33.

72% decreased slightly by 0 per second.

11 units, basically flat.

However, due to factors such as the two-drug system of drugs and an increase in sales staff, the sales expense ratio rose by zero in the third quarter.

5 units.

Due to the increase in management personnel and the increase in operating expenses of overseas companies, the management expense ratio rose by zero.

9 units.

In addition, due to the appreciation of the US dollar in the third quarter, the appreciation of the Egyptian pound and the ruble generated exchange gains, and the financial expense ratio fell by 2.

08 singles, is the most preliminary improvement in profit.

4. Profit forecast and rating: The company’s performance has improved significantly, and the transfer of the old and new management teams is smooth. We believe that as long as the government supports the future, the management team remains stable, and the new generation participates in incentives, the company will eventually go out of the trough and bring good rewards to shareholders.

We expect the company’s EPS for 2019-2021 to be 1.

12 yuan, 1.

23 yuan and 1.

34 yuan, maintaining the “recommended” level.

5. Risk warning: raw material prices are rising too fast, production capacity is less than expected, political changes in overseas markets, exchange rate changes, etc.