Angel Yeast (600298): Steady revenue growth and short-term profit margins
Event: The company announced its 2018 annual report: operating income66.
86 ppm, an increase of 15 in ten years.
75%; realized net profit attributable to mother 8.
57 ppm, an increase of ten years.
The company’s revenue has grown steadily, and profit-side blending and molasses costs have affected the growth rate. In terms of products, the yeast series achieved operating income of 54.
73 ppm, an increase of 24 in ten years.
Revenue from sugar products and packaging products3.
2.4 billion, 2.
29 ppm, with annual increases of -2.
In terms of different regions, domestic revenue contributed 46.
94 trillion, the same increase of 17.
3%; foreign contribution revenue 19.
2.6 billion, an increase of 12.
Although the revenue growth was steady, the profit margin was affected by multiple factors, and the net interest rate fell by 2 percentage points.
First, affected by environmental protection policies, Yili’s subsidiary limited production by 40%.
Yili, as the company’s highest gross margin segment, has an impact on net profit margin of about 1 due to production restriction.
In addition, molasses raw materials, exchange rate changes and other factors have led to the decline in An Qi’s profit margin.
Finally, the period fee rose by zero.
The five singles also have an impact on net profit.
The expansion of the company’s brand promotion led to a higher increase in advertising costs, freight rates also increased slightly due to the increase in oil prices; financial costs also rose by 4,360 million due to increased scale and other reasons.
Increasing prices into the cost drop, the company’s 19-year performance will pick up.
In 18 years, the company continued to lead the yeast industry. In October, it took the lead in raising prices within the industry by 3-4%. Nutrition and health, microbial nutrition, plant nutrition and other business units achieved rapid development.
Capacity continued to expand, expanding business base.
The company will start the second phase of Russia’s production expansion project, and the yeast capacity will increase by 1.
In addition, Chongzuo environmental protection technology reform and 2 will be implemented.
The 5 year / year granular fertilizer production project, applying the latest process technology to produce new granular organic fertilizer products, will reduce the sales risk and environmental protection risk of the fermentation broth thick slurry to promote the sustainable operation of the enterprise.
We expect the price increase in 19 years and the rapid growth of small units, the company has a high probability of achieving the 15% revenue growth target.
The cost side is affected by the downward impact of molasses prices and the impact of price increases, and the company’s gross profit will rise slightly.
However, Yilili’s production limitation still affects the company’s performance level. The relocation of Yili or the 苏州夜网论坛 development of high gross profit capacity in overseas regions will effectively improve the current situation.
Profit forecast: EPS is expected to be 1 in 2019-2021.
26, 1.50, 1.
82 yuan, corresponding to PE is 24, 20, 17 times, maintaining the “buy” level.
Risk warning: sales are less than expected; changes in raw material prices; exchange rate changes