Angie Yeast (600298) 2019 Interim Report Review: Profit Growth Segmentation Results to Pick Up
Matters: The company released its semi-annual report for 2019 and realized operating income of 37.
100 million, an increase of 11.
6%, net profit attributable to mother 4.
600 million, down 7.
7%, achieving a profit of 0.
56 yuan; of which, Q2 achieved operating income of 18.
900 million, an increase of 11.
7%, net profit attributable to mother 2.
300 million, an increase of 0.
Q2 net profit was lower than expected.
In the second quarter of 19, revenue increased by 11.
7%, basically in line with market expectations; net profit attributable to mothers increased by 0.
8%, lower than market expectations, mainly due to the decline in gross profit margin, the increase in sales expense ratio, and the increase in yield.
Dragged down by the sugar business, revenue growth slightly increased.
The company’s 2Q19 revenue increased by 11.
The growth rate is slightly higher than 7%. Firstly, expansion of factories in China such as Le Sifu caused intensified competition in the industry; secondly, the contradiction in the growth rate of the baking industry caused the company’s yeast business to be impacted;During the same period, it dropped sharply by more than 80 million. Excluding this effect, the overall revenue growth rate was 14% ±.
From the product point of view, 1H19 domestic pasta yeast increased 14%, YE increased 14% +, nutrition and health increased 24% +, animal nutrition increased 25% +, microbial nutrition increased 16% +, and sugar decreased 81%.
In the first half of the year, domestic revenue increased by 11% and exports increased by 14%.
Q2 net profit was flat with last year, lower than market expectations.
Q2 gross profit margin was 36.
1%, down with 0.
1pct, due to multiple plant overhauls, Yili plant production restrictions and other factors led to an increase in amortization depreciation, partial replacement decreased, raw material costs fell, the price increase effect is good, and it is expected to improve in the second half of the year.
Expenses during Q2 20.
5%, same as 0.
5pct, due to the endorsement fee and promotion of the activities of the Nutrition and Health Division, the Q2 sales expense ratio increased by 0.
4pct, the management expense ratio (considering internal R & D expenses) is 7.
68%, with a rise of 0.
In Q2, the deductible amount of the parent company ‘s decline in performance last year was exhausted. In addition, Egypt and Russia ‘s subsidiaries increased their yields, which resulted in 苏州夜网论坛 an increase of zero yields.
The effect of the above factors has caused Q2’s net profit to be basically the same as last year and lower than market expectations.
Initial release of production capacity + recovery of sugar prices, the goal achieved in 19 years.
Looking into the third quarter and the long term, from the perspective of revenue, 1) At present, the capacity utilization rate of the Yili plant is 60% -70%, and it will gradually recover in the second half of the year, Egypt1.
The 5 to YEYE project was put into production in April this year, and the capacity effect will be released quarterly; 2) The price of white sugar has picked up, which will help the company digest its white sugar inventory, and realize the reduction / reversion of losses; 3) The company strengthens the odor treatment of various factories due to environmental protectionThe probability of cessation of production has been significantly reduced; therefore, the quarterly improvement in revenue has been achieved, and the 15% revenue target is expected to be achieved.
From the perspective of profit, 1) the molasses purchase cost in 19% will drop by 6% -7%, and the gross profit rate of yeast will increase steadily; 2) some H1 factories will be overhauled to reduce the depreciation and amortization of H2; 3) the endorsement of nutrition and health business andThe market promotion is amortized in H1, which is expected to decrease in the second half of the year; 4) The depreciation of the RMB this year will help increase the company’s exchange loss gains.
Therefore, we expect the company’s 19-year revenue growth rate to be about 13% and net profit growth rate to be about 8%.
Earnings forecasts and investment advice.With the increase of the company’s YE penetration rate and strong downstream demand, we managed to maintain a growth rate of about 20%. At the same time, the company actively expanded high value-added derivatives such as health products, microbial nutrition, and animal nutrition, and the gross profit rate continued to increase; the overseas cost advantage was obviousThe net profit rate is higher than that of domestic factories. Based on the above factors, the company’s net profit is expected to achieve restorative growth after 18 years of short-term adjustment.
We expect revenue growth rates to be 12 in 19-21.
2% / 14.
5% / 13.
9%, net profit growth rate was 7 respectively.
3% / 19.
3% / 19.
8%, EPS is 1.
59 yuan, corresponding PE is 24/20 / 17X.
The company’s performance fluctuates in the short term, but in the long run, the company has great development potential and maintains the “recommended” level.
Risk warning: industry competition intensifies, new capacity is put into production less than expected, molasses prices change, overseas market expansion is less than expected, sugar business reduces losses, exchange rate changes, and exports decline.